CRM or Customer Relationship Management is a process of approaching customers by a company. This process is important for both customers and the company. It is a continuous communication to a beneficial direction through a company. This strategy enables the company to know in details every need of the customers. Customer Relationship Management brings together information about customers, sales, marketing and market trends. Through this procedure the companies can identify, acquire and retain customers who are profitable.
The term CRM is an information industry term. It helps the businesses mainly so that they can use technology and human resources. This risk free process provides opportunity to identify best customers and target them. Almost all companies keep a database about the customers that describes the relationship of every enterprise with its clients. This database helps the enterprise to deal with the customer directly so that it can access information while matching the customer needs.
The main aim of CRM is to build a relation between the company and the distribution partners as well as the clients. A number of ways are found to be present in customer relationship management such as on-premise, on-demand or through Software Service (SaaS) CRM. Customer relationship management application has three major parts that include operational CRM, analytical CRM and collaborative CRM.
Operational CRM means that direct customer contact is achieved through the processes of sales, marketing and service which are documented for further reference. On the other hand, analytical CRM creates a database about its customers. This database contains all the details about the customers. Collaborative CRM starts interactions with customers and the company. Thus Customer relationship management provides solution and agrees to bring people, processes and data together for the betterment of the companies and customers.
There are two types of implementation of CRM methods. These include on-premise and on-demand or hosted method. However, each method seems to possess different advantages and disadvantages. It is appropriate for companies seeking high customized customer-management practices or companies who have in-house IT resources and support systems. Consequently Customer Relationship Management is essential for companies as it enhances the relation between the customer and the enterprise both in financial and emotional terms.