I. What is CRM?

Customer relationship management (CRM) is a defensive marketing strategy that focuses on managing the customer experience by better understanding their needs and purchase behavior. It is a systematic way to strengthen the relationship between a company and its customers, transforming acquaintances into friends and partners.

II. What are CRM’s benefits? 

- Identifying prospects

- Acquiring customers

- Developing customers

- Cross-selling

- Up-selling

- Managing migration

- Better Service

- Customer Retention

- Increasing loyalty

- Winning back defectors

III. Who Uses CRM and Why? 

Because:

- To increase customer retentionand customer loyalty. 

- To stay even with their competition.

- To attempt to differentiate themselves from their competitors based on their ability to provide outstanding customer service. 

- To encourage development of customer communities and social networks. 

IV. The objectives of CRM systems include the following:

- Identifying potential customers

- Understanding customer needs, both current and latent

- Differentiating profitable from unprofitable customers and segments

- Decreasing attrition by increasing value and satisfaction

- Increasing usage of current products and services

- Increasing usage of a greater number of a company’s products and services

- Increasing usage of more prestigious items produced by a company (trading up)

- Increasing customer service and satisfaction

- Improving campaign management

- Increasing referrals

- Winning back lost customers

- Moving customers up the relationship hierarchy from strangers to acquaintances to friends to partners; integrating marketing and sales efforts throughout the various channels used by the company.

V. Summary:

CRM plays a very important role in business, helping to increase revenue and reduce the cost of finding new customers.