What is CRM? What are different CRM Applications available?

An acronym for Customer Relationship Management, CRM is a term originally defined and designed to improve customer service. CRM entails all aspects of interaction that a company has with its customers, whether it is sales or service-related. The literal and original meaning of the expression Customer Relationship Management was simply managing the relationship with your customer.

Customer refers to an entity that acquires or consumes goods or services from organization of their liking. They set their mutual price and other attributes of those goods and services.  Customers may choose single or multiple products/services they like from single or many providers.

Relationship in business refers to a state involving communication process to understand one-another’s requirements and how they can fulfill that. It is not a one time process. The more you understand requirement the more you can provide your service/product to customer. These would help in understanding prospect of market as well.

Management refers to the managing of customer interactions. This defines how you have handled all the process in achieving customer trust. It gives you an idea on your pros and cons part. it is helps you better understand on customer-centric business solutions.

Types of CRM

1. Operational CRM
2. Analytical CRM
3. Collaborative CRM
   

1. Operational CRM

The operational application of CRM enables effective interaction with customers. For this purpose various tools are used.
It concentrates on three areas of business processes: the computerization, enhancement and improvement of services. These areas are based on offering customer support mostly. There are major automation applications, which support the CRM systems that aid in the computerization of marketing, selling and services process.

2. Analytical CRM

The data collected in operational management is analyzed to segment customers. The valuable information thus obtained is used to satisfy customers.

Here, the sales are not done directly to the customers. This type is made in a mode to analyze critically the information, the demographics and anything else relating to the customers. The sole aim of analytical CRM towards the organization is developing, supporting and enhancing the decision-making in the organization. It establishes the powerful patterns and forecasts in the clients’ information and data collected from different operational CRM systems.

3. Collaborative CRM

The various departments of company like the sales, technical support, and marketing, share the information they collect about customers. The objective is to improve the quality of customer service and increase customer loyalty.

It allows the company to synchronize and manage efficient, productive interaction with customers, prospects, partners, and internal associates across all communication channels. The customers’ viewpoint is taken care of at every transaction level thus enabling better service to the customer. Collaborative CRM also reduces web service costs by enabling web collaboration.

CRM Software

As its name suggests, CRM software was originally designed to help businesses build and maintain relationships with new and existing customers.

From a growth standpoint, CRM is used to find leads, follow up with prospects and nurture them through the sales pipeline. CRM is also used to maintain customer loyalty by storing key information to boost sales — for instance, by personalizing the experience and providing excellent customer support.

Different CRM Software Available

• SalesForce
• SugarCRM
• Vtiger CRM
• Suite CRM

The Impact of Technology on CRM

In recent years, customer relationship management (CRM) has been a topic of the utmost importance for scholars and managers. Technology have changed consumer buying behavior, and today there are many ways for companies to communicate with customers and to collect data about them. By measuring CRM performance in terms of the initiation, maintenance, and retention of customer relationships, the study provides a detailed picture of what CRM implementations are capable of achieving.

The strategies and processes of a good CRM system will collect, manage and link information about the customer with the goal of letting you market and sell services effectively.