What is CRM? Explanation, definition and description
CRM (Customer Relationship Management) is a term that can best be described as "customer-oriented business." Platform Klantgericht Ondernemen (Dutch CRM Association) uses the following definition:
"The implementation of a strategy by which a company or institution seeks (customer) relationships to optimize in terms of customer profitability and customer satisfaction. CRM is seen as a continuous and systematic, organization-wide activity. "
Another way of working
CRM is, in other words, a modern way of operating with the (individual) customer. That means at least a different way of working for marketing, sales and customer service representatives, but actually also for all other departments within companies.
Questions and Answers
That other way of working requires a different way of seeing and thinking. It starts with finding answers to the following questions:
- Who is my customer?
- What value do I deliver to a customer?
- Of what value is a client to me?
- How can I get more value to a customer?
- How can I earn more from a customer?
These simple questions are particularly difficult to answer in reality. It requires more knowledge about (individual) customers than usually is available. This has consequences for information management in a company. It suggests other ways of collecting and organizing information so that a complete customer picture rises. This requires more cooperation and exchange of information between marketing, sales, customer service, as well as accounting and manufacturing.
Customer Awareness and the promise of CRM
If one has been able to answer the questions above, the resulting customer awareness asks for a different set of skills of employees. This is achieved by the following:
- Customer Knowledge is used by marketing to communicate more tailored to individual customers and their needs; the Internet is an increasingly important channel.
- Sellers choose cooperation with marketing and customer service at the right time to make offers to customers, especially those customers who follow them have expressed the need for personal sales contact.
- Customer service actually helps customers solve problems. They offer customers appropriate solutions that contribute to the efficiency goals of the organization.
The result is more satisfied customers who return, which will mean sustainable profitability for the company. That is the essence of CRM.