Introduction about Customer Relationship Management (CRM):
CRM or Customer Relationship Management is a strategy for managing an organization’s relationships and connections with customers and potential customers. A CRM system assistances companies stay connected to customers, streamline processes, and improve profitability.
When people talk about CRM, they are usually referring to a CRM system, a tool that is used for contact management, sales management, efficiency, and more. The goal of a CRM system is simple: Improve business relationships.
The concept of customer-relationship management started in the early 1970s, when customer satisfaction was evaluated using annual surveys or by front-line asking. At that time, businesses had to rely on standalone mainframe systems to automate sales, but the extent of technology allowed them to categorize customers in spreadsheets and lists. In 1982, Kate and Robert Kestnbaum introduced the concept of Database marketing, namely applying statistical methods to analyze and gather customer data. By 1986, Pat Sullivan and Mike Muhney released a customer evaluation system called ACT! based on the principle of digital rolodex, which offered a contact management service for the first time.
The propensity was trailed by many developers trying to make the most of centrals’ possible, including Tom Siebel, who designed the first CRM product Siebel Systems in 1993.Nevertheless, customer relationship management popularized in 1997, due to the work of Siebel, Gartner, and IBM. Between 1997 and 2000, leading CRM products were augmented with enterprise resource planning functions, and shipping and marketing capabilities. Siebel introduced the first mobile CRM app called Siebel Sales Handheld in 1999. The idea of a cloud-hosted and portable customer bases was soon adopted by other leading providers at the time, including PeopleSoft, Oracle, and SAP.
The first open-source CRM system was developed by SugarCRM in 2004. During this period, CRM was fast migrating to cloud, as a result of which it became accessible to sole entrepreneurs and small teams. This growth in convenience generated a huge wave of price reduction. Around 2009, developers began considering the options to income from social media’s momentum, and designed tools to help companies become accessible on all users’ favorite networks. Many startups at the time benefited from this trend to provide exclusively social CRM solutions, including Base and Nutshell. The same year, Gartner organized and held the first Customer Relationship Management Summit and summarized the features systems should offer to be classified as CRM solutions. In 2013 and 2014, most of the popular CRM products were linked to business intelligence systems and message software to improve business communication and end-users’ experience. The principal trend is to replace standardized CRM solutions with industry-specific ones, or to make them customizable enough to meet the needs of every business.
In November 2016, Forrester released a report where it “identified the nine most significant CRM suites from eight protuberant vendors,” among them companies such as Infor, Microsoft, and NetSuite
What do people mean when they say CRM?
CRM assistances users focus on their organization’s relationships with separate people including customers, service users, colleagues, or suppliers.
When people talk about CRM, they might mean any of three things:
CRM as Technology: This is a technology product, often in the cloud, that teams use to record, report and analyses connections between the company and users. This is also called a CRM system or solution.
CRM as a Strategy: This is a business’ philosophy about how relationships with customers and potential customers should be managed
CRM as a Process: Think of this as the system a business adopts to develop and manage those relationships.
What does CRM software do?
CRM software records customer contact information such as email, telephone, website social media profile, and more. It can also automatically pull in other information, such as recent news about the company’s activity, and it can store details such as a client’s personal preferences on transportations.
The CRM system organizes this information to give you a complete record of individuals and companies, so you can well understand your relationship over time.
CRM software improves customer relationship management by creating a 360° view of the customer, capturing their interactions with the business, and by developing the information needed to have better conversations with customers.
Why is CRM important?
CRM enables a business to spread its relationships with customers, service users, colleagues, partners and suppliers.
Forging good relationships and keeping track of prospects and customers is crucial for customer acquisition and retention, which is at the heart of a CRM’s purpose. You can see everything in one place — a simple, customizable dashboard that can tell you a customer’s previous history with you, the status of their orders, any outstanding customer service issues, and more.
Gartner predicts that by 2021, CRM technology will be the single largest income area of spending in enterprise software. If your business is going to last, you know that you need a strategy for the future. For forward-thinking businesses, CRM is the framework for that strategy.
Who should use a CRM?
Who uses CRM? The short answer is that any company that wants to maintain a relationship with their customers can advantage from using a CRM system. To get a little bit more specific, there are two groups of companies that often see the most benefit:
• B2B companies, which naturally need to track principals and customers across long sales series and through upgrade paths (e.g., a software company, a recruiting firm)