What is CRM?

CRM has a lot of definitions and understandings today, including:

1. CRM is a popular abbreviation for marketing and sales people, namely “Customer Relationship Management” and in Indonesian it becomes more or less “MHP,” or Customer Relationship Management. The explanation per word is as follows: The first is a customer or customer, which in the English dictionary means someone who regularly or repeatedly makes purchases from a merchant. The customer here means the person, while in this definition, it is not disclosed about the low cost, satisfaction, purchase, etc. The second word, namely “relationship” or “customer,” refers to two-way communication between buyers and sellers. And for the last word, namely management, broadly (without mentioning the details of how to manage something), means management. The conclusion from all the previous definitions, when combined, will be roughly “a two-way relationship management between the company and its customers.”

2. Along with its development, CRM can also be interpreted as an IT industry term for software, strategies, methodologies, and or other web-based applications that are used to assist companies in managing their customer relationships.

3. CRM can also be said as a business method of the company in keeping customers from running to other competitors by carrying out all kinds of interactions, such as via e-mail, telephone, or website, as well as the results of communication with marketing or sales staff.

4. CRM is defined as a series of managed systematic activities carried out to attract more attention, understand, and maintain profitable customer loyalty (referred to as the most profitable customer) in order to achieve very healthy company growth.

5. CRM is a company’s business strategy that enables the company to manage its relationships with customers effectively.

If you are still confused, then there is no need to worry because it is not easy to define the meaning of CRM. This is because CRM has a very broad scope of marketing and sales activities and it ultimately becomes a part of knowledge management or knowledge management of the company.

So what does this have to do with computer technology (IT) in general? Although not the first, computer technology remains important because it is used to manage the amount of information that has been collected, meaning that without IT, CRM will be paralyzed.

CRM Advantages and Benefits

There are many opinions about what the advantages or benefits of CRM are, such as:

1. The use of CRM has many benefits for increasing the value of a company :

  • Boost Customer Loyalty

With CRM applications, it is possible for companies to use all the information that has been collected from various sources with customers, such as call centers, the web, field services, and marketing staff. This consistent reception of information allows for better service and sales thanks to a wide range of important information about these customers.

  • Spend Less Money

CRM as outlined in a focused and specific marketing program scheme allows companies to use lower costs in service and sales that are directed to the right customers at the right time.

  • Operational Activities are More Efficient

The burden of cash flow is reduced and the risk of declining quality of service to customers is reduced due to the automation of service and sales processes. For example, the use of call center technology and the web can reduce administrative process barriers, costs, and bureaucracy that may arise.

  • The Time to Market has Increased

Thanks to the CRM application, which allows the collection of purchasing trend data and information from customers, the product will enter the market faster.

  • Income Increased

Information obtained from CRM applications can increase company profits and revenues. For example, companies can make sales globally through the website without the need to make special efforts to support these service and sales activities.

2. The use of CRM helps companies create new products based on knowledge of the dynamics that exist in the market, customer desires, and other competitors. This can be done by:

  • Maintain The Loyalty of Existing Customers and Keep Attracting New Customers
  • Quick Response to Customers
  • When You Get The Chance, See What You Can Do
  • Providing Additional Products That Customers Require Based on Previous Purchases (Cross-Selling)
  • Offer Higher Status to Customers Through Upgrades, e.g., Silver Card Versus Gold Card
  • Process Automation for Increased Efficiency
  • Prevent Fraud by Identifying Customer Habits
  • Customer Data is Stored in A Single System to Reduce Operational Risk

3. Companies that use the CRM concept get the following benefits:

  • Maintain The Loyalty of Existing Customers and Attract New Customers
  • Provide Additional Products That Customers Require Based on Previous Purchases (Cross-Selling)
  • Through Upgrades, Provide Customers with Higher Status
  • Quick Response to Customers, etc

Those are some explanations of what CRM is and the benefits and advantages that are important to know.

Reference by. https://www.olsera.com/id/blog/crm-dan-manfaatnya/72

Comments are closed