What is CRM?

Customer Relationship Management, also known as CRM, is a customer relationship management strategy that aims to manage relationships with customers or prospective buyers, collect customer data, then record salesperson activities in dealing with customers. IN the industrial era 4.0, technological developments make this strategy a major requirement in business.

Sometimes in running a business, the strategy chosen to achieve the company’s goals is not achieved, because a company is too eager to get the attention of new customers and potential customers, even though new customers can improve the company’s image, but they forget to pay attention to their old customers, customers. still must be considered because their attitude of loyalty and their loyal attitude in the company is the key to a company to be well recognized. Therefore CRM can improve regular customer relationships that create value for the company and customers. CRM helps companies to acquire new customers and maintain their relationships with old customers that will benefit a business or company. Retaining customers is very important because repeat customers are the biggest revenue generator for the company.

The concept of CRM is simple in that it treats different customers differently because everyone’s tastes and needs are different and their value to the company may be different. A successful strategy does not focus on increasing customer satisfaction, but innovating the goods and services the company offers and improving employee services, which will generate profits for the company. There is a difference between a strategy and a CRM system, a CRM system is a supporting part of an organization’s CRM strategy. For organizations to relate well to their customers by using a CRM system that provides the infrastructure needed to connect these relationships. Customer service and support is an important part of business, an organization must be able to prepare their CRM strategy and CRM system.

Lower-end CRM systems are usually designed for companies with many small customers, while high-end CRM systems are for companies with a few large customers. Examples of low-end CRM systems are Amazon and examples of high-end CRM systems like Boeing. CRM policies have two basic elements: the company must identify many types of customer contact points and need to consolidate data about each customer. An organization must know the activities of their customers. This interaction is called the customer contact point. The organization’s CRM system must manage the many additional customer contact points that occur through the use of popular personal technology. Touch points such as e-mail, websites and communication via smartphones.

Operational CRM systems support front office business processes. The front office process is a process that interacts directly with customers, namely sales, marketing, and services. The main components of an operational system are applications that face customers and applications that touch customers. The benefits of an operational CRM system are efficient and personalized marketing, sales, and service, increase sales and account management by optimizing the information shared by many employees by simplifying existing processes (cell phones), increasing customer satisfaction, knowing the information

and processes needed to know customers, and understand customer needs, and effectively build relationships between the company, its customer base, and its distribution partners.

Customer-facing applications, customer-related CRM applications, sales representatives, field services, and the organization’s customer interaction center interact directly with customers. The app supports customer service and support, sales force automation, marketing, and campaign management.

References

R. Kelly Rainer, Brad Prince, Casey G. Cegielski. (2020). Introduction to Information Systems, 5th Edition International Student Version. 05. John Willey & Sons, Inc, Ch. 11

Customer Relationship Management (CRM)

Customer Relationship Management

Armstrong, Gary., dan Kotler, Philip. (2007). Marketing : an introduction. 8th edition. Pearson Education.

Keller, K.L dan Kotler, P. (2007). Manajemen Pemasaran (Terjemahan, Edisi 12, Jilid 1). Jakarta: PT Indeks.

https://www.academia.edu/10327075/Kelebihan_kekurangan_CRM