What Is Customer Relationship Management?
Customer relationship management (CRM), also known as CRM, is a technique designed to improve customer satisfaction and loyalty through creating experiences unique to each individual. This is achieved by the use of technology, processes and collaboration between departments.
In the past, maintaining these relationships required manual labor and effort. Businesses would store the contact details of customers on the back of filing cabinets, rolodexes, or spreadsheets. They weren't shared with other departments, which often resulted in the loss of sales opportunities and miscommunication. With the advent of modern marketing-technology platforms that provide a central database for customer data, keeping track of relationships is much easier and effective. These systems are called CRM systems.
CRM tools simplify and centralize customer data which makes it easier for teams to work together to manage leads and improve the overall funnel for sales and marketing. CRMs track lead and customer interactions and help companies identify and prioritize the most valuable leads. This enables salespeople to only reach out to qualified prospects. This could result in higher conversion rates, purchasing value and speed of closing. it takes to close a deal.
Personalization is another important element of a CRM practice that lets customers know that their business is valued. From sending a personal thank-you note following a sale, to tailoring an item or service to satisfy the needs of a specific customer, this creates a sense of trust that motivates the purchase of more products and brands, as well as brand loyalty.