The Customer Relationship Management or CMR, is the process that companies use to understand their customers and offer an immediate response to their changing wishes. Customer relationship management employs technology that enables the organization to collect and manage large amounts of customer data, information that it then uses to design strategies.
What are the keys to a good CMR?
The information that is collected helps companies to solve specific problems throughout the entire customer relationship cycle. This data also provides valuable new insights regarding the needs and behavior of your customers. This in turn enables the adoption of products at specific customer segments.
Often times collected data generates solutions to problems related to marketing functions in the company, such as supply chain management or new product development.
What is Customer Relationship Management for?
All the companies use CRM for a set of situations that have to do with:
- Gather market research on customers, in real time if necessary
- Generate much more reliable sales forecasts
- Quickly coordinate information between the sales team and customer service representatives, increasing efficiency
- Check the financial impact of different product configurations before pricing
- Accurately calculate the performance of promotional programs, as well as the effect of integrated marketing activities, with the aim of redirecting expenses
- Provide information regarding customer preferences and problems to product designers
- Increase sales through the identification and systematic management of sales opportunities
- Improve customer retention and design more effective customer service programs.