This is a term applied to processes implemented by a company to handle its contact with its customers. It is a software-based approach to handling customer relationships and stores information on current and prospective customers.
CRM is the strategic use of information, process, technology, and people to manage customer relationship with your company(marketing, sales, services and support) across the whole customer life cycle.
Components of CRM
Information is raw material of CRM. These type of information are useful to CRM.
- Identification data
- Marketing data
- List data
- Overlay data
Customer centred processes are the product´ of CRM. Some examples are;
- All current process that directly touch the customer.
- Touch points by which we interact with customer such as phone, e-mail etc.
- Integrating and rationalizing the processes from customer‘s point of view
Technology is machinery that enables the CRM work. These are examples of technologies that CRM may find useful; work.
Software product (process automation tools, analysis tools, web site development, and management tools)
Networking integrating application and database-It has security features, such as encryption tools and firewalls
People are power supply of CRM. The energy source must be set to the right voltage for entire system to work. People are reset through various change management tools and support mechanisms, such as;
- Training and education
- New tools
- Measurement and rewards
- Control over buying process-Information, comparison, selection, easy to find
- Best possible price-Delivery (free), quality
- All payment options-Secure
- Communication designed to suit needs-Computerized, complex, caring
Customer life cycle
The customer life cycle is total time that a customer is engaged. The customer life cycle is total time that a customer is engagedwith your company from the customer‘s experience and viewpoint. There is high level of cycle that is consistent for customers, no matter the product or services and no matter how much customer spends stage;
- Consider: Customer becomes aware of need and investigates solution.
- Purchase: Customer evaluates and chooses the best alternatives and place an order.
- Set up: Customer install the product and learn how to use it.
- Use: Customer operates and maintains the product and finally makes the decision to retire it or upgrade, which starts the cycle all over again.