customer relationship management

(noun)

Customer relationship management (CRM) is a widely implemented model for managing a company's interactions with customers, clients and sales prospects.

Related Terms

(noun)

Customer relationship management (CRM) is a widely implemented model for managing a company's interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support.

Related Terms

Examples of customer relationship management in the following topics:

  • The Importance of Clarity in Professional Settings

    • CRM - Salesforce.com provides end-to-end customer sourcing and customer relationship management.
    • It encompasses a variety of topics including: consumer behavior, advertising, public relations, corporate communication, research and measurement, reputation management, and event management.
    • Customer relationship management (CRM) is a widely implemented model for managing a company's interactions with customers, clients, and sales prospects .
    • Customer relationship management (CRM) is a widely implemented model for managing a company's interactions with customers, clients, and sales prospects.
    • Developing relationships is essential for the effective operation of a business, and clarity of communication is essential in developing relationships.

  • Customer Experience Management

    • Customer experience management focuses the operations and processes of a business around the need of the individual customer.
    • Customer experience management (CEM) is a strategy that focuses the operations and processes of a business around the needs of the individual customer.
    • The goal of customer experience management is to move customers from satisfied to loyal and then from loyal to advocate.
    • Traditionally, managing the customer relationship has been the domain of customer relationship management (CRM).
    • Explain the difference between Customer Experience Management (CEM) and Customer Relationship Management (CRM)

  • Customer Relationship Management

    • Customer relationship management focuses on improving retention through improving communication with consumers, and leveraging data to better understand needs.
    • While it delivers a wide range of benefits, the central focal point of customer relationship management (CRM) is customer retention.
    • When customer needs are being met, and expectations are exceed, it is highly likely that current customers will remain customers, or be retained.
    • It is also worth noting the significant impact of modern technology and modern tools on this area of management.
    • Integrate the customer relationship management perspective into the broader organizational strategy, and recognize how organization's benefit from retention

  • Types of Public Relations

    • Customer relationship management (CRM) is a widely implemented model for managing a company's interactions with customers, clients, and sales prospects.
    • Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.
    • Measuring and valuing customer relationships is critical to implementing this strategy.
    • Employee relationship management systems (ERM) may be defined as the information systems that support the relationship between a company and its employees.
    • The components of an employee relationship management system are multiple, and, as in customer relationship management, achieve the goal of assisting employees in the whole life cycle of their activities in and for the company.

  • Salesperson Personalities

    • Following up will ensure customer satisfaction and help establish a relationship with the customer.
    • Customer Relationship Management: Customer relationship management or CRM focuses on establishing long term relationships between companies and customers.
    • Some companies offer loyalty programme in servicing accounts to build relationship with customers and to allow repetitive purchases.
    • Sales people need to ensure feedback from customers or prospects are transmitted to the upper level of management in facilitate the decision making process.
    • Jobber, D. and Lancaster, G. (2006), Selling and Sales Management.

  • Special topic: supply chain management

    • Supply chain management is the business function that coordinates and manages all the activities of the supply chain, including suppliers of raw materials, components and services, transportation providers, internal departments, and information systems.
    • For example, Apple, Inc uses sophisticated information systems to accept orders for custom-built computers from individual customers all over the world.
    • Apple assembles the computers in Shanghai, China, to the customers' specifications.
    • Information and communication technologies such as global positioning systems (GPS), barcode technology, customer relationship management (CRM) databases, and the Internet allow service businesses to coordinate external and internal service suppliers to efficiently and effectively respond to customer demand.
    • The supply chain is not just a one way process that runs from raw materials to the end customer.

  • Profitability analyses (e.g. by customer, product, region)

    • There are many types of analyses that managers prepare in order to gain a deeper insight into the operations of their businesses.
    • Managers, know, intuitively, that some customers are more profitable than others, that they make more gross margins on some products than others, and if the business has more than just local coverage, that some geographical regions are more profitable than others.
    • According to Wikipedia, "Customer profitability (CP) is the difference between the revenues earned from and the costs associated with the customer relationship in a specified period".
    • "Although CP is nothing more than the result of applying the business concept of profit to a customer relationship, measuring the profitability of a firm's customers or customer groups can often deliver useful business insights.
    • For many managers, gross margin by customer gives them the essential information they need without going through the additional step of trying to allocate costs to customers, which is clouded by its inherent inaccuracies.

  • Philosophies

    • Quality management adopts a number of management principles that can be used to guide organizations towards improved performance.
    • Power customer satisfaction ratings.
    • Quality management adopts a number of management principles that can be used by top management to guide their organizations towards improved performance.
    • Customer focus: Since the organizations depend on their customers, they should understand current and future customer needs, should meet customer requirements, and try to exceed the expectations of customers.
    • Mutually beneficial supplier relationships: Since an organization and its suppliers are interdependent, therefore, a mutually beneficial relationship between them increases the ability of both to add value.

  • Long-Term Relationships: Satisfaction and Loyalty

    • Customers are willing to pay higher prices; they may cost less to serve and can bring new customers to the firm.
    • Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals. " In a survey of nearly 200 senior marketing managers, 71% responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses.
    • Unsatisfied customers are not loyal customers, thus customer satisfaction is seen as a key performance indicator within business and is often part of a "Balanced Scorecard. " In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
    • It is essential for businesses to effectively manage customer satisfaction.
    • Much research has focused on the relationship between customer satisfaction and retention.

  • Introduction

    • That is why Amazon.com customers have their purchases delivered by FedEx, UPS or a country's postal service.
    • Both companies and the customers benefit from relationships that work.
    • Additionally, FedEx or UPS receives more business, and customers benefit from receiving superior service.
    • Nevertheless, many managers now agree that strategies for establishing and managing external relationships are necessary for all organizations in the current and future global business environment.
    • Managers must have business management skills, technical skills, and a thorough knowledge of external relationship management in order to take optimal advantage of opportunities and leverage the skills and knowledge of other organizations to maximize returns on investment.