There are a number of potential benefits in following the CRM (Customer Relationship Management) route. These are increased automation facilities, better use of existing resources, better quality of information, faster response time, improved customer targeting, better customer retention and increases sales.
The CRM application enhances the company’s ‘front office’, focusing on sales, marketing and customer service. However, in order to be truly successful CRM must be seen as a combination of people processes and system rather than as a narrowly defined IT application. CRM is one piece of the new wave of ERP that focuses on outward facing processes, tying them together with the inside-the-enterprise transaction processing engine of the original ERP system.
With the popularity of the Web and Web-based ERP business, companies operating in a mass production world were able to truly personalize relationships with customers. The ability to build strong relationships with customers is causing renewed efforts among businesses to achieve lifetime value from current customers and to put strategic plans in place to go after lifetime value for new customers in new markets.
Companies are increasingly waking up to the fact that they can create new value by working creatively with business partners in the distribution chain and with consumers to reduce costs and cycle times of products, and to provide better order tracking information to customers.
Research has shown that only happy and satisfied customers are truly loyal and loyal customers keep coming back. Using information technology (IT), nimble companies can strengthen customer relationships by integrating sales, product configuration, planning and design processes with customers through existing and new channels.
Typically, a company has a set of preferred customers but welcomes orders from any qualified buyer. Since the industrial revolution companies have viewed orders as nothing more than a demand for their product or service. As the source of revenue, customers are treated with respect in hopes of getting repeat business.
In the world of eBusiness, companies can replicate the personal customer relationship that existed prior to mass markets by using knowledge of the customer to personalize customer service while continuing to sell standard products.
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