The Role of CRM in Businesses

As a businessman, you know how vital Customer Relationship Management (CRM) is. Why is CRM so important? Because the CRM can increase the company’s profits by building good relationships between the company and its customers. In this article, I will discuss the definition, purpose, functions, components, stages, and benefits of CRM.

What is CRM?

Customer Relationship Management or CRM is a business strategy to effectively manage the relationship between the company and its customers. This type of approach can retain customers and add value to customers. CRM combines policies, processes, and strategies into a single entity implemented within a company.

CRM Goals

What is the purpose of CRM for a company and business?

• Increase profits for the company by building good relationships between the company and customers.
• Provide complete information about customers, Maximize the relationship between customers and the company through selling up selling strategies and cross-selling strategies

What is meant by Up Selling Strategy and Cross-Selling Strategy?

• Up-Selling is a strategy of selling products by offering customers the same product but of higher quality and price to enable customers to buy products of higher quality and price so that producers earn higher profits.
• Cross-Selling is a sales strategy carried out by providing customers with other products only used as a compliment.

CRM Functions

What are the functions of CRM for a company and business? It is delivered as follows.

• Track the behavior of potential customers
• Track customer-related information and data
• Helping companies to increase sales
• Handling complaints from customers
• Improve customer support
• Helping companies to automate business

CRM Components

CRM has three critical components, namely:

• Management

This component focuses on improving the management system and customer relations. Later, this will affect the company’s development by increasing profits and competitiveness.

• Relationship

The next component is a relationship, where a company and agency need two-way communication. Again, the goal is customer satisfaction in the long term.

• Customers

The last component is the person who will use, is using, or has used the services of the company or business.

Stages in CRM

In CRM, there are several stages which include:

• Acquire (Get a new customer)

Acquiring new customers can be achieved by providing potential customers with easy access to information. In addition, innovation and attractive services also play a role in attracting new customers.

• Enhanced (Adds value from customers)

There are two ways to improve customer relationships, namely by using up-selling and cross-selling strategies that offer customers similar products but of higher quality. Meanwhile, cross-selling is a sales strategy by providing customers with other products that are only used as a compliment.

• Retain

Companies must seek customer loyalty to retain customers by trying to meet customer expectations.

Benefits of CRM for a business and company

There are several benefits of CRM for the needs of companies and businesses.

• Encourage customer loyalty

Companies and businesses that use CRM can take advantage of customer information, such as websites, call centers, and other information. With this information, the company will provide the services needed by customers

• Increase Time to Market

By implementing CRM, you can get various information, such as data about customer buying trends; then, you can also decide when the product should be marketed.

• Reduce company costs

CRM can reduce company costs from sales and service to customers, using a specific scheme and focusing on the right customers. So the company does not need to incur costs that are less needed

• Improved work efficiency

CRM can be used to promote sales of products and services. It can also reduce the risk of poor service quality and wasted cash flow.

• Improve company opinion

Implementing CRM can increase customer loyalty and increase work efficiency. This affects providing benefits for companies and businesses

Conclusion

CRM is an information system that manages the company and its customers’ relationships effectively. The CRM component itself consists of customers, relationships, and management. In addition, the advantage of using CRM is that it provides a management system that can manage and meet the needs of all customers.