Customer relationship management (CRM) is an approach to business that focuses on increasing customer satisfaction and loyalty by delivering experiences that are unique to every individual. This is achieved by making use of processes, technology, and collaboration between departments.
In the past maintaining these relationships was a laborious and manual process. Businesses used to store customer information on the back of filing cabinets, rolodexes, or spreadsheets. These were not shared with other departments and frequently resulted in the loss of sales opportunities and ineffective communication. With the advent of new technology platforms for marketing that offer an integrated database of customer information, maintaining relationships is much easier and more effective. These are known as CRM systems.
CRM tools centralize and streamline customer data to make it easier for teams and individuals to work together and nurture leads, improving the overall funnel for sales and marketing. In addition to tracking customer and lead interactions, CRMs assist companies to identify the best potential leads by scoring and prioritizing them, so that salespeople only communicate with qualified prospects. This results in more conversion rates and greater purchase values, and may significantly decrease the time required to close a deal.
Personalization is another crucial aspect of a CRM practice that lets customers know their business is valued. From sending a personalized thank you note after an acquisition, to tailoring a product or service to meet certain needs it creates a feeling of connection that drives customers to return to purchase and brand loyalty.