What is the importance of CRM?
Importance of CRM can be summarized as follows:
(i) CRM is basically a methodology and software that helps an enterprise to manage customer relationships in an efficient way.
(ii) CRM includes all business processes like sales, marketing and service that serve the customer in everyday business activities. What happens in CRM is that an enterprise builds a customer database that describes the customer in detail so that management, sales persons, customer service people and customers can access information, match customer needs with product plans and give excellent customer service.
For this, it is essential to gain the trust of customers through more personalized services. CRM basically helps in gaining the trust of customers through more efficient customer service.
(iii) CRM understands and manages the needs of an organization’s current and potential customers. Identifying and meeting customer needs is the main objective of customer relationship management. CRM works to achieve excellent customer service. This is fundamental of CRM implementation.
(iv) Effective CRM delivers this personalized service that customer expect with its quick response what comes from an efficient customer database system. CRM makes integration of every area of business that touches the customer.
For Example – Marketing, sales, customer service, etc. are possible mainly through its integration of the people, process and technology of the organization.
Building loyalty with customers is gained as a result of CRM implementation as it enhances value to both customer and company. CRM also serves to bring about process, organization and technical change. It enables a company to manage its business activities in a more efficient manner around customer behaviour.
