What is CRM?
Customer Relationship Management (CRM) is a system for managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty.
Definition 2:
Customer relationship management is a holistic process of identifying, attracting, differentiating, and retaining customers. As it relates to e-business, it uses digital processes and integrates customer information collected at every customer touch point.
According to Marketing,
Most marketers, however, give the concept of customer relationship management a broader meaning.
In this broader sense, CRM is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping, and growing customers.
Understanding the Term
CRM enables companies to provide excellent real-time customer service through the effective use of individual account information. Based on what they know about each valued customer, companies can customize market offerings, services, programs, messages, and media. CRM is important because a major driver of company profitability is the aggregate value of the company’s customer base.
It systematically includes customer purchases, sales force contacts, service and support calls, website visits, satisfaction surveys, credit and payment interactions, and market research studies – every contact between a customer and a company.
This term is perhaps the most important concept of modern marketing. Some marketers define it narrowly as a customer data management activity (a practice called CRM.)