Customer relationship management (CRM) is a business strategy geared toward increasing customer satisfaction and loyalty through creating experiences that are unique to each person. This is achieved through the use of technology, processes and teamwork between departments.
In the past maintaining these relationships was a time-consuming and manual process. Businesses kept customer contact details in filing cabinets and rolodexes or in spreadsheets that were frequently not shared with other departments, which led to sales opportunities being lost and the miscommunication of customers. With the advent of modern technology platforms for marketing that offer a central database for customer information, keeping records is much easier and more efficient. These systems are called CRM systems.
CRM tools streamline and centralize the customer’s data, making it easier for individuals and teams to work together and nurture leads, improving the overall funnel of sales and marketing. In addition to analyzing customer and lead interactions, CRMs can help companies determine the most promising leads by scoring them and prioritizing them so that salespeople only get in touch with prospects who are qualified. This leads to more conversion rates and greater purchase value, and could significantly decrease the time required to close a deal.
Personalization is also among the most important elements of a well-run CRM system, as it shows customers that their company is appreciated. From sending a customized thank you note following a sale, to tailoring a product or service to satisfy a particular need, this informative post creates a sense of connection that encourages customers to return to purchase and brand loyalty.