Customer Relationship Management (CRM) - Crm Components And Vendors, Market For Crm, Crm Costs And Deployment, Crm Must Meet Higher Consumer Expectations

Customer relationship management (CRM) refers to the type of enterprise software that is designed to improve a company's interaction with its customers and thereby increase revenue from sales. In addition to offering the potential to increase revenue, CRM can also reduce the cost of supporting customers. CRM has the ability to move any transaction to the lowest cost channel possible and still satisfy customer needs.

CRM can provide a complete view of all customer relationships, taking into account all points of customer contact and the different media through which customers interface with the enterprise. CRM systems give companies the ability to track customer interaction across a range of channels, from e-mail to call centers. CRM can also provide the customer data required to conduct personalized marketing campaigns. Elements of such personalized marketing campaigns might include offers tailored to an individual visiting a company's Web site, dynamically served-up Web pages for different users, and personalized e-mail offers and announcements.

CRM helps companies learn as much as they can about their customers. Armed with this knowledge, companies can anticipate their customers' needs and keep them satisfied, resulting in higher revenues and lower costs. Data generated by CRM systems can be shared throughout an enterprise, allowing all departments or business units to coordinate their marketing efforts, including product development, advertising and promotion, and customer service.

CRM covers a range of products and vendors. It is often fragmented, with no single package delivering complete functionality, according to Bank Systems & Technology magazine. Among the technologies included in a CRM environment are sales force automation (SFA), customer analytics, real-time marketing solutions, customer behavior modeling, and real-time decision-making. CRM technology is designed to allow the customer to view, access, and interact with the complete set of services offered by the enterprise.

Different components of CRM relate to the different goals of customer acquisition, customer retention, and improved customer value. SFA and marketing applications are designed to help a company acquire more customers and convert prospects into customers. Data warehousing and analytical tools, along with customer service applications for call center and contact center management, help companies retain customers through improved communications and customer relations. CRM applications that can help improve customer value include marketing automation and campaign management software for cross-selling and up-selling. Data warehousing and analytical tools are also available to improve customer value.