Customer relationship management (CRM) is also referred to as CRM, is a method which aims to increase customer satisfaction and loyalty by making experiences that are unique to each individual. This is accomplished by combining technology, processes, and collaboration between departments.
In decades past, maintaining these relationships was a tedious and manual process. Businesses used to keep the contact details of customers on the back of filing cabinets, rolodexes, or spreadsheets. They were not shared with other departments and frequently led to miss opportunities to sell and confusion. Maintaining relationships has become much simpler and more efficient with the advent of modern marketing technology platforms that offer an integrated database of customer information. These are referred to as CRM systems.
CRM tools facilitate and centralize customer information which makes it easier for teams to collaborate to nurture leads and improve the overall sales and marketing funnel. In addition to analyzing customer and lead interactions, CRMs help companies find the most qualified leads by scoring and prioritizing them, so that sales representatives are only contacted with prospects who are qualified. This can lead to higher conversion rates, higher purchase values and reduce the time it takes to close a deal.
Personalization is a key element of a CRM practice that lets customers know that they are valued by the company. Sending a personalized note thanking them after a sale or tailoring the product or service to meet a specific need can create a bond that encourages returning customers and brand recognition.