Customer relationship management (CRM) is an organizational strategy that focuses on improving customer satisfaction and loyalty by delivering experiences that are unique to each customer. This is accomplished through the use of technology, processes and collaboration across departments.
In decades past, maintaining these relationships was a lengthy and manual process. Businesses used to keep the contact details of customers on rolodexes, filing cabinets or spreadsheets. They were not shared with other departments and often led to missed sales opportunities and the inability to communicate. Maintaining relationships has become easier and more efficient thanks to the introduction of new marketing technology platforms that provide an integrated database of customer information. These systems are referred to as CRM systems.
CRM tools facilitate and centralize customer information, making it easier for teams to collaborate to manage leads and improve the overall funnel for sales and marketing. In addition to analyzing customer top article and lead interactions, CRMs can help companies identify the best potential leads by scoring them and prioritizing them so that sales representatives are only contacted with prospects who are qualified. This can result in more conversion rates and greater purchase values, and can dramatically reduce the time required to close the deal.
Personalization is a key element of a CRM practice that lets customers know their business is appreciated. From sending a personalized thank you note following an acquisition, to tailoring a product or service to satisfy an individual need, this creates a sense of belonging that leads to customers to return to purchase and brand loyalty.