Syntel CQA Forum Customer Relationship Management IICQA Doc No 28What is CRM?
CRM is about retaining customers! If you're truly retaining customers, you're deliveringincreased value. In a perfect world, CRM marshals marketing materials, tracks customers'histories and coordinates a company's multipronged interactions with its customers.CRM is a comprehensive approach which provides seamless integration of every area of business that touches the customer – namely marketing, sales, customer service and fieldsupport-through the integration of people, process and technology, taking advantage of therevolutionary impact of the Internet. CRM creates a mutually beneficial relationship with yourcustomers.CRM is about acquiring, developing, and retaining satisfied loyal customers; achievingprofitable growth; and creating economic value in a company's brand.
Customer Relationship Management is the practice of identifying, attracting and retaining the best customers to increase sales and profits.
Several companies are turning to customer-relationship management systems and strategiesto gain a better understanding of their customer’s want and needs. Used in association withdata warehousing, data mining, call centers and other intelligence-based applications, CRM"allows companies to gather and access information about customers' buying histories,preferences, complaints, and other data so they can better anticipate what customers willwant. The goal is to instill greater customer loyalty."
Customer Relationship Management (CRM), which swept through the business landscape in theearly 1990s, brought the promise of helping sellers
please most of the people most of the time
.Riding the coattails of customer satisfaction would come increased organizational efficiencyand, better still, increased revenues.As CRM evolved, many companies assumed that just bolting on new technology (e.g.,client/server, call centers, sales force automation software, data warehouses, etc.) or addingnew services would enhance customer relationships. This assumption was as pernicious as itwas false. After all, you can't sell what people don't want to buy, no matter how efficient andservice-oriented your sales channel. And as for gathering customer insights, be careful whatyou wish for. Many companies faced the unsettling paradox of having advanced dataavailability and analytic techniques that quickly outpaced their ability to absorb and apply theinformation. They were left with sophisticated tools that offered little real value.
At face value, the case for implementing a CRM system is a no-brainer. There are goodreasons why companies continue to implement these tools, even while the economicslowdown pressures them to cut back on other IT expenditures.
For starters, the cost of retaining anywhere from 5 to 10 existing customers -- the numberdepends on the analyst -- is almost the same as the cost of attracting a single newcustomer. Research from Boston, Massachusetts-based consultancy Bain & Co. shows thatevery five years, U.S. companies lose half their customers. Cutting these losses by just 5percent can double profits.
CRM tools tend to be easily implemented on a piecemeal basis, which is a source of greatrelief to those that survived -- if barely -- the seemingly never ending implementations of ERP applications in the early and mid-1990s.