Sakshi kumari

A36106418149
BBA ‘C’

.Q. What do you understand by the term CRM? Why it is

important?
Ans. At its core, customer relationship management (CRM) is all of the
activities, strategies and technologies that companies use to manage their
interactions with their current and potential customers. A saying frequently
heard and said in many businesses is "customer is king."

CRM helps businesses build a relationship with their customers that, in turn,
creates loyalty and customer retention. Since customer loyalty and revenue are
both qualities that affect a company's revenue, CRM is a management strategy
that results in increased profits for a business. At its core, a CRM tool creates a
simple user interface for a collection of data that helps businesses recognize and
communicate with customers in a scalable way.

Leslie Ye, editor at Hubspot’s Sales Blog, describes a CRM in the following way:
“Beyond contact info, CRMs log reps’ touch points with their prospects,
including emails, phone calls, voicemails, and in-person meetings. Some CRMs
offer the ability to track deal stages and reasons for closed-lost and closed-won
deals.”

According to Gartner, CRM software totaled $26.3 billion in 2015 and predicts
that that figure will continue to rise through 2018.

At its core, customer relationship management is simple. However, it can be

implemented in a huge array of methods: websites, social media, telephone
calls, chat, mail, email and various marketing materials can all be integrated
into a CRM solution. Due to CRM's diversity, it doesn't only benefit larger
businesses -- using and maintaining a CRM tool is the basis for a scalable sales
and marketing system. Any company will benefit from maintaining a record of
which conversations, purchases and marketing material can be associated with
leads and customers.
Some of the major ways in which CRM accomplishes this goal are listed below.

• Learning. CRM helps businesses learn about their customers, including who
they are and why they purchase your products, as well as trends in customers'
purchasing histories. This allows businesses to better anticipate their
customers' needs and, as a result, fulfill them. Effectively using customer
relationship management can also provide a strategic advantage. Well
organized customer data helps companies select the correct recipients for
promotions and new products.

• Organization. CRM allows businesses to become more efficient by

organizing and automating certain aspects of the business. From sales
processes to marketing campaigns and business analytics as well as customer
data, CRM automates and streamlines these processes for businesses. This
allows the businesses to organize these processes into simpler, easier to
understand data.

• Optimization. Finally, CRM software allows businesses to optimize their

customer interactions. By simplifying and streamlining many of the more
complex customer interaction processes, CRM increases customer satisfaction.

CRM System is always important for an organization.

1. A CRM system consists of a historical view and analysis of all the

acquired or to be acquired customers. This helps in reduced searching
and correlating customers and to foresee customer needs effectively and
increase business.
2. CRM contains each and every bit of details of a customer, hence it is very
easy for track a customer accordingly and can be used to determine
which customer can be profitable and which not.
3. In CRM system, customers are grouped according to different aspects
according to the type of business they do or according to physical location
and are allocated to different customer managers often called as account
 managers. This helps in focusing and concentrating on each and every
customer separately.
4. A CRM system is not only used to deal with the existing customers but is
also useful in acquiring new customers. The process first starts with
identifying a customer and maintaining all the corresponding details into
the CRM system which is also called an ‘Opportunity of Business’. The
Sales and Field representatives then try getting business out of these
customers by sophistically following up with them and converting them
into a winning deal. All this is very easily and efficiently done by an
integrated CRM system.
5. The strongest aspect of Customer Relationship Management is that it is
very cost-effective. The advantage of decently implemented CRM system
is that there is very less need of paper and manual work which requires
lesser staff to manage and lesser resources to deal with. The
technologies used in implementing a CRM system are also very cheap
and smooth as compared to the traditional way of business.
6. All the details in CRM system is kept centralized which is available
anytime on fingertips. This reduces the process time and increases
productivity.
7. Efficiently dealing with all the customers and providing them what they
actually need increases the customer satisfaction. This increases the
chance of getting more business which ultimately enhances turnover and
profit.
8. If the customer is satisfied they will always be loyal to you and will remain
in business forever resulting in increasing customer base and ultimately
enhancing net growth of business.