Customer relationship management (CRM) is also referred to as CRM, is a technique that aims to increase customer satisfaction and loyalty through making experiences that are unique to each person. This is achieved through a combination of technology, processes and teamwork across departments.
In the past maintaining these relationships required a laborious and manual process. Businesses used to keep the contact details of customers on filing cabinets, rolodexes and spreadsheets. They weren’t shared with other departments and often resulted in the loss of sales opportunities and confusion. With the introduction of new technology platforms for marketing that offer an integrated database of customer information, maintaining relationships is much easier and more effective. These are known as CRM systems.
CRM tools simplify and centralize customer information which makes it easier for teams to collaborate to nurture leads and improve the overall funnel for sales and marketing. CRMs track lead and customer interactions and help companies identify and prioritize the most valuable leads. This allows salespeople to only reach out to prospects who are qualified. This leads to more conversion rates and greater purchase values, and can significantly reduce the time required to close a deal.
Personalization is also one of the most essential elements of a well-run CRM system because it shows customers that their company is appreciated. From sending a customized thank you note following an order, to modifying a product or service to meet certain needs and creates a sense of trust that motivates sales and brand recognition.