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Sample Essay on Customer Relationship Management

Customer Relationship Management

Customer relationship management refers to a system that is used in managing interactions of a company with the current as well as the future customers. It entails the use of technology in organizing, automating and synchronizing sales, customer service, technical support and marketing. Customer relationship management is simply abbreviated as CRM.

In the contemporary companies, customer relationship management involves different aspects of the interactions that a firm has with the customers, whether service or sales-related. Despite the fact that the phrase is commonly used in describing customer-business relations, a CRM system is also used in managing clients, business contacts, sales leads and contract wins.

Today, customer relationship management solutions provide customer data for businesses which helps in products and service delivery in ways that customers want. CRM systems help in the provision of better services to customers. They also help in providing effective up-sell and cross-sell services. In addition, the systems are crucial in closing deals, understanding customers and their needs and retaining the current customers.

Contemporary organizations are always looking for ways that will enable them to personalize the experience of the customers. This process is also called mass customization. Through the use of tools that come with CRM systems such as email organizers, help-desk software and other enterprise applications, businesses are able to realize mass customization and offer their customers and clients better experiences.

Customer relationship management is always seen as a strategy that a business uses in improving its operations in different areas. It enables a business to have a better understanding of the customers. It also helps in retaining customers by offering them better experiences while attracting new ones. Having an effective CRM system enables a business to win more contracts and new clients which helps in increasing profitability and decreasing the cost of managing customer relations.

Buying behaviors of consumers have greatly changed with the current advancement in technology. This calls for improvement in the relationship strategies used by companies in communicating with customers as well as collecting relevant data about them. As such, many aspects of customer relationship management systems depend heavily on modern technologies.

Nevertheless, processes and strategies of a good customer relationship management system will help in collecting, managing and linking information regarding customers with an aim of enabling a business to sell or market goods and services more effectively. The major advantage that a business gets from an effective customer relationship management system is having data stored in one location from where it can be accessed with ease.

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