What is Customer Relationship Management CRM

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CRM or customer relationship management is a business strategy that takes the relationship with customers as a starting point. Not the product or the process, but your customer is central to the business. You can improve your competitive position by responding better to the needs of the customer and operating as an organization in a more customer-oriented manner. On and through this page you can read more about what CRM is, the definition, its added value and about relationship management software in practice.

Definitions CRM

If one thing is clear, then it's that customer relationship management is viewed very differently in practice. Sometimes it means the business strategy, then again it's about the same concept but as a software system, while others see it as a marketing process. The most famous definitions see it as a business strategy:

Definition 1

Customer relationship management is a business strategy that combines skilled customer-facing personal, optimal processes and enabling technologies to balance enterprise revenues and profits with maximum customer satisfaction.

Definition 2

Customer relationship management is a comprehensive approach which provides seamless integration of every area of ​​business that touches the customer - namely marketing, sales, customer service and field support - through the integration of people, process and technology, taking advantage of the revolutionary impact of the internet.

Definition 3

Customer relationship management is a business strategy that's aimed at establishing, maintaining and developing relationships with individual customers in a way that creates value for both the company and the customer.

Definition 4

Customer Relationship Management is a business strategy aimed at achieving the long-term goals of the organization and creating a sustainable competitive advantage. It's a marketing vision in which not the company and the product, but the wishes and needs of the individual customer are central. The aim is to be able to earn maximum from customers by satisfying them and connecting them to the organization for a long time. As a business strategy, CRM affects an organization in all its sections. The introduction of customer relationship management as a business strategy therefore often means a long-term change process that requires a lot of perseverance.

Customer focus and Customer data

For the customer focus that's aimed at customer relationship management, you need to know the needs and characteristics of each customer as well as possible. To do this, you need to collect, store and relate a lot of data, such as contact details, data on sales and service history, telephone notes or all correspondence. The better you know customers, the better you can classify customers based on the data collected and tailor your business accordingly.

That way you can spend the most time and attention on the customers that are most valuable to your business. CRM software plays an important role for storing, accessing and relating customer data. Although it seems that every customer relationship management system is the same, there is an enormous diversity of systems and suppliers. Many of them are focused on a type of business process, specific industry or companies of a certain size. Others are more generic and are tailor-made for various applications. The selection of a customer relationship management system that best fits the organization therefore requires a professional approach.

In summary

- The individual customer is central.
- Profit increase through increased customer satisfaction.
- Realizing optimum and cost-efficient business processes.
- Win-win situation with mutual benefits for own organization and customer.

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