Customer Relationship Management (CRM)

Customer relationship management or CRM (its acronym in English) is a database platform focused on collecting all the relationships that companies have with their customers .

This database is a very important source of information for the company. Since the more they know about their customers, the easier it will be to plan and adapt their marketing strategies . Before continuing, it is worth mentioning the origin of the acronym CRM (Customer Relationship Management) that translated into Spanish would be something like management (management) of relationships (customer).

The CRM can be used as a tactic, because for a company the information of its customers is a very important asset that allows it to maintain long-term relationships and build customer loyalty.

What should be clear is that information alone is not enough, that is, it is not enough to have a large customer database. The really important thing is that the company with this data can understand, focus and focus better on the customer.

The value of the information is knowing how to use it so that the company strives to understand the customer and anticipate preparing the best answers. Only the company that manages to better understand the needs of the client and is able to prepare the solutions through the delivery of superior goods and services in relation to the competition, becomes successful and profitable.

How CRM can be effective

In order for the use of the software and the database of the information you provide to be effective, the following needs to be taken into account:

  • It should be used as direct marketing: Inother words, the information collected should focus on customers who are truly interested in the products; so as not to waste time and resources on people who are not considered potential clients. And above all keep current customers, who are the ones that represent the most value to the company.
  • The information obtained must be valuable and detailed: Not all information is important, what will most interest marketing specialists is to have demographic data, interests and preferences; and of course the past transactions that the client has made.
  • Ask permission or consent of the client to have this information:People want to be sure of who they give their data to and what they use it for. This is a sensitive issue, if not handled properly.
  • Investment in CRM should be appropriate: Itmeans that in some businesses it is more important and appropriate to have more data. You can get the most out of the financial, telecommunications and insurance business. In these markets the customer pays high prices for the offers he receives.

It has less profitability in the use of businesses with products of mass consumption and of low price, it is more expensive to obtain the information than the price that the client pays the products.

Why use it?

The following graph explains what a CRM should use a company for

In short, what is expected with the use of CRM is not only to have the application of the software, but to ensure that companies are able to develop better strategies that focus on getting to know their customers better.

Since, if you know your customers better, you will be able to better detect your needs, achieve a higher level of your satisfaction and therefore achieve loyal customers, who generate buybacks and recommend us.

Without neglecting that profitability for the company is also important, because otherwise the investment would not make sense; since the company could not stand within the market.

 

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