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Customer relationship management (CRM)

  • Customer relationship management (CRM) is an approach to managing a company's interaction with current and potential customers.
  • It uses data analysis about customers' history with a company and to improve business relationships with customers, specifically focusing on customer retention.
  • CRM compile data from a range of different communication channels, including company's website, telephone, email, live chat,marketing material and social media.
  • Through the CRM approach and the systems used to facilitate it, businesses learn more about their target audiences and how to best cater to their needs.
  • Adopting the CRM approach may also occasionally lead to favoritism within an audience of consumers, resulting in dissatisfaction among customers.
  • The idea of CRM began evolving in early 1970's, when customer satisfaction was evaluated using annual surveys or by front-line asking.
  • Three types of CRM : Operational, Analytical, collaborative.
  • OPERATIONAL CRM is made up of 3 main components: sales force automation, marketing automation, and service automation.
  • ANALYTICAL CRM systems is to analyze customer data collected through multiple sources and present it so that managers can make more informed decision.
  • Third primary aim of CRM systems is to incorporate external stakeholders such as suppliers and distributors and share customer information across organization.