Customer Relationship Management is one of the major parts of Business administration. It analyses the data of the sales and uses it to retain the customers and improve the sales of the company. It analyses the data from the company's telephone, email, sales, website, social media and everything that's required in driving the sales of the company.
This concept started in the 20th century itself but with different names. It started with the annual surveys about the products. Later, many concepts came into the market such as database marketing, ACT as the previous versions of Customer Relationship Management(CRM).
The concept of CRM got popularized in the year of 1997 due to the works of Siebel, IBM and Gartner. The first CRM app was created by Siebel in the year of 1999. In 2004, the first open-source CRM was launched by SugarCRM.
Disadvantages of CRM
Data security and protection becomes a major concern.
CRM does not suit all businesses.
Time and initial costs also a concern.
Requires training of employees.
The performance may also be reduced sometimes.
Components of CRM
In this step, the sales are recorded and all interactions are tracked. This is one of the major parts of CRM. This helps us to understand the sales even better.
Human Resource Management
Here, Human skills and resources are put to a test. The work should be done effectively by effective people. This plays a major role since strategies cannot be implemented correctly without effective people.
It is the management of sales leads. It involves the tracking of leads and designing the campaigns. It involves a heavy study of the purchase analysis and the things required to improve the leads.
As CRM stands for customer relations, we need to attend the needs of the customers. We also need to respond to the complaints. This builds trust among the customers which is required for a business to perform effectively.
Marketing is the promotion of company products. This involves campaigning and many other ways of telling people that they need to choose our product as we are very close to assess their needs.
This involves the task of automating the non-creative and repetitive tasks. This reduces time and improves output. We can consider formfilling and other paperwork as examples of workflow automation.
This involves the analysing the outputs and the inputs provided. This also involves the analysis of the latest trends in the market as we need to attend those needs. We can do this by pictographs, pie charts, graphs and many other things. This is required as we need to know the business requirements and the revenue generated.
Advantages of CRM
More knowledge about customers.
Improved customer retention.
Improved customer service.
Efficiency is increased.
It helps in automating boring and non-creative tasks.
Communication is improved.