Customer relationship management (CRM) is an organizational strategy that focuses on improving customer satisfaction and loyalty by providing experiences that are unique to every individual. This is achieved through making use of processes, technology, and teamwork between departments.
In the past managing these relationships was manual and laborious processes. Companies kept customer contact information in filing cabinets and rolodexes or in spreadsheets that were typically not shared with other departments, which led to missed sales opportunities and the miscommunication of customers. Maintaining relationships has become easier and efficient with the introduction of new marketing technology platforms that provide a central database for customer information. These are known as CRM systems.
CRM tools streamline and centralize customer information which makes it easier for teams to work together to maintain leads and improve the overall funnel for sales and marketing. CRMs monitor lead and customer interactions and help businesses determine and prioritize the most effective leads. This lets salespeople only reach out to prospects who are qualified. This leads to greater conversion rates and higher purchase values, and may significantly reduce the time needed to close an agreement.
Personalization is another crucial aspect of a CRM strategy that shows customers they are valued by the company. From sending a personalized thank you note following the sale, to customizing an item or service to meet a particular need it creates a feeling of trust that motivates the purchase of more products and brands, as well as brand loyalty.