CRM in Business: Definition, Purpose and Benefits

17/09/2020

Have you ever heard of the term CRM? As a business person, you may often hear the term CRM or Customer Relationship Management. CRM is a new approach in managing corporate relationships with customers at the business level to maximize communication and marketing through managing a variety of different contacts. This approach makes it possible to retain customers and provide added value continuously to customers.

CRM (Customer Relationship Management) combines policies, processes, and strategies applied by the company into one unit. The use of CRM is to interact with customers and also to track customer information.

CRM is a new approach to managing relationships between corporations and business customers. With this relationship, the hope is that there are communication and marketing by managing a variety of different contacts. This approach is taken to increase customer loyalty to the company as well as continuous added value. Nowadays, CRM implementations almost always use information technology to attract new profitable customers to the point that they have an attachment to the company.

The Purpose of CRM in Business

CRM is made for various purposes that ultimately achieve the final goal of the business, namely making a profit. These are the goals of a CRM:

  1. Improve the relationship between the company and existing customers to increase the company’s revenue.
  2. Using integrated information to produce satisfactory service by utilizing customer information to meet customer needs to save the customer time.
  3. Generate consistency in procedures and processes of delivering answers to customers.

Benefits of CRM in Business

  • Encourage Customer Loyalty

CRM allows companies to utilize information from all points of contact with customers, either through the web, call centers, or through marketers and field service personnel. With consistency and ease in accessing and receiving information, the service department can provide better service to customers by utilizing various important information about these customers.

  • Reducing Costs

With the implementation of CRM, sales, and customer service can have a specific and focused scheme and can target services to the right customer at the right time.

  • Improve Operational Efficiency

Ease of sales and service processes will be able to reduce the risk of decreasing service quality and reduce cash flow expenses.

  • Increased Time to Market

The application of CRM will allow companies to get information about customers, such as data on customer buying trends that can be used by the company.

  • Increased revenue

As mentioned at the top of the article, implementing a proper CRM can increase customers, increase operational efficiency, and increase time to market, which in turn will lead to increased company revenue.

At first glance, it is not much different from a company’s public relations, but in fact, these two parts are much different. CRM prioritizes customer relationships, while public relations prioritize the company’s image in the eyes of customers.

For an affordable CRM solution, you can try using a Lead Conversion Squared CRM. Lead Conversion Squared CRM can be integrated into a Call Center (IP-PBX VOIP) so that it becomes a better-integrated system from telemarketing to field agents. CRM Lead Conversion Squared can monitor the process from Pre-Sales (Leads management, Customer & Survey Management) to Post-Sales (Service & Project Management). To better understand how CRM works, you can try the 3 day master class test first.