A CRM helps a firm manage customer relations effectively.
A company's leadership implements effective customer relationship management processes to increase corporate profit potential in the short and long terms. CRM policies also allow a company to improve its market share and client satisfaction levels.
Definition
CRM consists of tools, policies, processes and procedures that a company follows when interacting with clients. These procedures include sales and service-related processes. CRM software helps a firm manage client relationships more effectively.
Features
A CRM policy may include customer identification, such as name and address, corporate contact, operating data and other financial information. The policy may also include client sales history, active service contracts and sales forecasts.
Importance
CRM is key to a company's short-term and long-term economic survival. Absent effective customer relationship management procedures, a firm most likely will lose market share, experience declining sales and face financial distress.
Expert Insight
A company may hire a business-savvy specialist to review customer relationship management procedures and mechanisms, comparing these procedures to industry practices. Specialists, such as marketing consultants, can recommend appropriate CRM procedures, depending on the company and industry.
Tags: customer relationship, customer relationship management, relationship management, effective customer, effective customer relationship, firm manage, helps firm