Customer relationship management (CRM) is a business strategy geared toward improving customer satisfaction and loyalty by creating experiences that are unique to every individual. This is achieved through the use of technology, processes and teamwork between departments.
In decades past maintaining these relationships was a tedious and manual process. Businesses kept customer contact details in rolodexes and filing cabinets, or in spreadsheets, which were often not shared with other departments. This led to missed sales opportunities and miscommunication. With the advent of new marketing-technology platforms that provide an integrated database of customer data, keeping track of relationships is much more simple and effective. These systems are called CRM systems.
CRM tools are designed to centralize and streamline customer data to make it easier for teams and individuals to work together and nurture leads, enhancing the overall marketing and sales funnel. CRMs monitor lead and customer interactions and help companies determine and prioritize the most effective leads. This allows salespeople to only contact prospects who are qualified. This can lead to higher conversion rates, higher purchase values, and decrease the time it takes to close a deal.
Personalization is a key element of a CRM practice that shows customers their business is valued. A personalized note of appreciation after making a purchase or customizing an item or service to satisfy a specific need helps to build a relationship that encourages the purchase of more products and encourages brand loyalty.
