What does CRM stand for? CRM stands for Customer Relationship Management. CRM is a business strategy that aims to understand, anticipate and manage the needs of an organization’s current and potential customers.
In the 1990’s Tom Siebel, founder of the CRM, developed some simple software centered on the collection and handling of information related to customer relations and transactions. CRM is an integrated management system focused on customers and prospective customers.
Technology plays a huge role in CRM. It can use databases, data mining and marketing to increase customer value and their own profitability. This type of technology can be used to keep a record of customer’s names and contact details in addition to their history of buying products or using services. This information can be used to target customers in a personal way and offer them services to meet their specific needs.
For example:
- Tickets purchase online: These websites retain the customers details and their purchase history. The websites regularly send emails to previous customers to inform them of similar upcoming events or special discounts. This helps to ensure that customers will continue to purchase tickets from a particular website in the future.
- Loyalty cards: The primary role of a retailer loyalty card is to gather data about customers. The retailer then can make sure they meet the customers need and also make new suggestions for new products based on their buying habits.
- CRM software: Many call centers use CRM software to store all of their customer’s details. When a customer calls, the system can be used to retrieve and store information relevant of the customer. This helps with analytics on age and usage for new products.
Having access to customers contact details and their services or purchase preferences through databases etc. can enable organizations to alert customers to new, similar or alternative services or products. Any organization can grow using a CRM. A CRM can help a business grow and focus on the customer.
Below is a simple video to review on what a CRM is, if you are more of a visual person. Feel free to comment and discuss your point of view regarding CRM and Information Technology via Twitter (@AltaFlux):
