Components And Elements Of Customer Relationship Management (CRM)

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Customer Relationship Management (CRM)

A macro-level process that subsumes numerous sub-processes, such as prospect identification and customer knowledge creation is defined as Customer Relationship Management system.
Purpose of CRM
In nowadays environment of extensive competition and rapid technological development CRM has the potential for achieving success and growth for organizations. It enables organizations to know their customers and build good relationship with them. The purpose of CRM is to understand what is needed to do to get more customers and to help a business keep its customers. Another main purpose of CRM is to helps a company to find out if its products are working and, ultimately, increase profit and to find out what services
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A. Customer Database
The first main component of Customer Relationship Management is the creation of customer database. Customer database include all pertinent information including descriptive information, transaction history and customer contact information. Customer responses to marketing such as redemption rates of coupons, mailers or email is also usually recorded in the customer database. Companies acquire customer information from loyalty customer cards, warranty cards, company websites and contests to create customer database.
B. Analysis and selection
After creating customer database the next step in the Customer Relationship Management process is the analysis of the gathered information. Then to separate the customers into different segments based on comparable purchase behaviors and descriptive information in order to develop marketing tactics specifically for them the collected data is used.
C. Customer
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Customer Relationship Processes can also be defined as “the activities performed by the organization concerning the management of the customer relationship and these activities are grouped according to a longitudinal view of relationship”
Categories of CRM processes
CRM processes are categorized into different groups.
Primary and secondary processes
The primary processes are the processes that have major cost or revenue implications for organizations like the logistic processes in the courier organization and claims process in insurance organizations while, secondary processes are the processes that have minor cost or revenue implication for organization
A. Vertical and horizontal processes
The processes that are placed completely within the business functions like customer acquisition process are called Vertical processes and the cross-functional processes like product development process are called horizontal processes.
Front-office and back-office

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