What is a CRM?
Customer relationship management, often referred to as CRM is a business strategy that the focus on meeting the needs of your customer. It does this to utilize advanced technologies to organize, automate, and integrate the marketing, sales and customer service components of an organization.
Customer relationship management applies data analytics to better understand a customer’s history with the company in order to better improve customer relationships, and more specifically, retain those same customers in order to facilitate and ultimately drive growth.
There are three different types of CRM strategies that you should have a general familiarity with:
1) Operational – Customer relationship management systems have a primary objective to integrate the automation of sales, marketing, and customer support. In order for a CRM strategy to have success, it is paramount for it to be operating effectively.
2) Analytical – Analytical CRM systems should be applied in order to analyze customer data that has been collected through various sources so that it can be presented to business managers, and development teams. Analytical CRM systems will apply various techniques such as data mining, correlation, and pattern recognition to analyze the customer data.
3) Collaborative – The final priority for a CRM system to be effectively implemented is to incorporate external stakeholders (e.g. vendors, suppliers, distributors etc.) so that they can share customer information across groups/departments and organizations.
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