Basics of Customer Relationship Management (CRM)

In this modern world, more and more, if not all, companies are turning to CRM as a way of dealing and keeping their customers. So what is CRM all about?

Customer Relationship Management (CRM) is a concept developed so that companies can effectively market their products, sell it and at the same time service their customers.  It involves a series of applications that a company can used to gain more insight on their customers. Basically, it works this way: for every contact with a customer, a company can record the specific  transaction and add it to a database which will then be analyzed and then compared with other customers’ transaction records. In this way, it will be easier for the company to pinpoint which products are popular with customers, develop a better strategic selling plan for the products, offer a better customer service and most importantly retain current customers and entice new ones.

But how does one get started? There are a number of CRM softwares one can choose from. The cost of a hosted or on-demand application can vary from $65 to $150 each month. These sort of softwares target those small to mid-sized companies who wanted to avoid the complexities  and cost of a large-scale CRM. A larger firm might want to purchase the much more expensive enterprise on-premise CRM application. The difference is that this is already a package  for several applications like one is devoted to sales and another is for customer service support, etc.  It can cost anywhere from several thousands to millions of dollars.

But, of course, the CRM implementation’s  success doesn’t only depend on the kind of software one is using; a company should know first its customer-focus strategy and then set a realistic goal for its staff to achieve

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