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What is CRM?
The three letters CRM stand for "Customer Relationship Management". At the heart of the CRM strategy is the customer. In the CRM approach, all of the company's activities are geared towards the customer. The aim is to increase customer satisfaction and thereby strengthen customer loyalty. This long-term relationship with existing customers and the recruitment of new ones is aimed at increasing the volume of sales.
CRM is split into an analytical and an operational approach. Analytical CRM brings the stored data together and evaluates it using certain methods. Operational CRM is the term used for the targeted use of the findings obtained from analytical CRM in the context of customer contact.
What benefits does a CRM system have for a company?
All of the information about customers, prospective clients and suppliers are documented and managed in a structured manner in CRM software. This means that a customer's buying behavior and preferences can be analyzed or the costs he generates can be flagged up. With this centralized data store, all employees from all departments have access to all relevant information. When a call comes in, the employee retrieves the customer's data and consequently has a precise indication of the person he is speaking to. This means that customer contacts can be established faster and in more detail, resulting in the customer feeling that he is receiving more personalized, intensive support.
A CRM system also allows the customer's potential to be estimated more effectively. Relationships with a high potential value can be looked after more intensively, whereas relationships with the potential for improvements can be identified and nurtured. CRM enables companies to offer customers services that are tailored to their needs.
As well as delivering standardized data, a CRM system also helps the company by providing figures and extensive statistics – even on competitors. This not only facilitates more effective planning, but also means that companies can respond quickly if things go wrong. The database serves as a basis for numerous sales and marketing activities.
By creating transparency for and standardization of processes, customer relationship management allows these processes to be optimized. It structures all customer-related workflows in marketing, service and sales. There are positive benefits for both sides: greater customer satisfaction and higher employee satisfaction. Through the closer connection to customers and the time savings achieved as a result of process optimization, operating costs can be reduced and profit increased. One positive effect that should not be underestimated is an increased ROI (Return On Investment).
So to sum up: Effective CRM is a strategic necessity for a company's growth and survival