Customer Relationship Management (CRM) represents one of the two primary operational systems found in most
organizations. More than simply sales and contact management, CRM provides a front office repository for a variety of
customer centric information. In many cases information about prospects and customers is very challenging to capture
because it tends be created and used in very informal ways. Examples of this include emails, contact records, notes,
phone conversations, problem reports, proposals, documents and other ad hoc information. It's important to understand
that CRM represents several critical solutions to common problems and can have a dramatic impact on three basic needs:
- Information Collection & Reference: CRM provides a central repository for all emails, documents, contact records,
notes and other ad hoc information. It also cross indexes these items so that relevant items appear at the company,
contact, opportunity, service request and similar dimensions.
- Process Management: By providing a central, shared repository for all data relating to customers it becomes possible
with CRM to begin formalizing many daily, weekly and monthly processes. For example marketing campaigns in which a
series of planned events must occur in a predetermined order and cycle can easily be configured and tracked.
Additionally, customer service issues can also be managed and tracked to ensure that customer problems are addressed
quickly and properly.
- Data Driven Planning: All the data collected during daily activities becomes available for analysis as the result
of having a properly implemented CRM system. This may be one of the biggest and most overlooked benefits of CRM, because
it makes it possible to identify what is working with customers and what isn't. Without the CRM system's centrally structured
repository for information, money and time is wasted on ineffective activities.
CRM also provides organizations with the opportunity to enjoy a more integrated understanding of their organization. By
integrating CRM with Accounting and other software, either through a data warehouse or directly, CRM makes it possible
to relate other subject areas to customer data. This offers a new view of how the organization functions and performs.