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What is CRM?
Home » Management » CRM » What is CRM?CRM is an acronym for “customer relationship management,” a term that has experienced a gradual definitional change over the last twenty years. Not long ago CRM was viewed principally in terms of the technological advances that provided companies with better tools for customer relations. CRM software is still an important component within the CRM process, but the definition of the term itself has expanded. In today’s business environment, CRM is alternately described as a strategy, a process, or both.
Unsurprisingly, the primary objective of a CRM program is the continuous improvement of the relationships between a business and its customers. That customer-centric approach, of course, is nothing new. For thousands of years successful businesses have realized that their most important assets are their customers, and that a proper business approach will list customer satisfaction as a top priority. CRM includes and expands that ancient business practice. CRM initiatives involve virtually all employees in a systematic attempt to better understand and serve the customers of that business.
In an attempt to improve customer relations, CRM programs connect as many links as possible concerning a customer’s experience with the company. From marketing to warranty service, CRM as a business philosophy preaches the important of collecting customer data at each step of the business-customer relationship. After collection, the customer data is disseminated to various departments within each business, so CRM includes not only data collection on a massive scale, but also the development of information funnels in order to make the most of the collected data (CRM software is used by many companies to aid in all facets of that process). As daunting as it sounds, the CRM consultation and products market is now varied enough to offer products and services for businesses of all sizes.
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