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Customer Relationship Management Definition

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CRM stands for Customer Relationship Management (CRM).

It's hard to find a definitive definition of what CRM means. So I'll outline the broad meaning and then give some examples.

You may have heard of the terms CRM and Customer Relationship Management in regards to software. Well CRM is not just a piece of software. It's more than that.

The CRM Customer Relationship Management software is a vital component, yet the whole business needs to understand CRM Customer Relationship Management in all departments and functions of the business and behave appropriately to make CRM Customer Relationship Management work.

An effective CRM Customer Relationship Management will include methodologies, strategies, software, and web-based capabilities that …show more content…

CRM Customer Relationship Management to understand the customers wants and needs

As information is collected about the customers' personal life, information is also collected about their buying habits and stored in CRM Customer Relationship Management software.

Humans are creatures of habit. By analysing the information collected about the customer and their buying habits the CRM Customer Relationship Management can be used to help the business identify what the customers would most likely want or need to buy.

For example, if your CRM Customer Relationship Management information lets you know that your best customers typically like buying 'red apples' in November for an average sale price of $15. You can prepare a marketing approach that is sent out to them prior to November that will steer them towards buying $30 worth of apples.

The customer sees it as useful because it's something they like to do at that time of year, and you're offering them a reminder and perhaps an incentive to buy more. The business benefits by structuring the offer to increase the sales value and therefore increasing the profit …show more content…

CRM Customer Relationship Management to help efficiency and effectiveness of business

A good CRM Customer Relationship Management application will help the business to become more efficient and effective.

The business can become more efficient because if a customer contacts the business, within seconds the customer service representative can produce the customers file. This will tell the employee all about the customer and their interaction with the business.

So a CRM Customer Relationship Management saves time for the business and is able to help the employees deliver high levels of personalised service.

A CRM Customer Relationship Management software program and approach can help the business become more effective. An example would be marketing.

Knowing all the information about the customers, the marketing strategies can be targeted towards the customers in a personal way. Thus marketing to a defined target market with a past history the potential of improved results is far greater than marketing to a 'cold'

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