What Is CRM Software ?
CRM is an abbreviation for customer relationship management, a method for managing a company's interaction with current and potential customers, and storing and analyzing data about past interactions. Management consulting company Bain defines CRM as "a process companies use to understand their customer groups and respond quickly—and at times, instantly—to shifting customer desires." But CRM can mean both the process and philosophy for meeting those goals, and the technology used to implement that process.
What is CRM Software Used For?
Customer Relationship Management is a strategic process that helps you better understand your customers’ needs and how to meet those needs and enhance your bottom line. CRM systems link up information about customers from a variety of sources, including email, websites, physical stores, call centers, mobile sales, and marketing and advertising efforts. CRM data flows between operational systems (like sales and inventory systems) and analytical systems that sort through CRM data for patterns.
If you don’t have an accurate view of who your customers are and what their needs or desires are or will be at any given stage in their lives, or if you are losing customers to a competitor, that's a clear indication that you need a CRM system.
There are many technological components to CRM systems, but thinking about CRM in primarily technological terms is a mistake. Instead, CRM should be viewed as a strategic process to better understand and meet your customers’ needs. A successful CRM strategy depends on bringing together lots of pieces of information about customers and market trends so you can more effectively market and sell your products and services.
With An Effective CRM Strategy, a Business Can Increase Revenues By: