Saturday, 18 June 2011

The benefits and the dangers of CRM

"CRM" stands for Customer Relationship Management. It is a business strategy that is used to improve customer service, and increase  customer satisfaction. Customer Relationship Management is designed to provide information a business need to develop and implement  smarter customer strategies.

The benefits of Customer Relationship Management CRM are clear: CRM ebables companies and organizations to build more profitable customer relationships and reduce operation spendings. Sales, mareketing personnels will have more customer information to work on. The business is able to know what customers want so that they can maximize their revenue by adverting the right products to the right people.  CRM also enable business to monitor all the contacts between customers and companies.

However, study has shown that only 16% of businesses are satisfied with  their CRM software.  More than half of CRM initiatives fail. The biggest problem is that the collected data are not used. Most of the companies has spent tons of money to collect all kinds of information of their clients but never use this information to improve their business. Money spent on CRM software and implementations has been wasted.  As a business owner, before you spend any money on CRM software and implementations, you need a complete planning that ensures your success. The ultimate goal is to improve your relationship with  your customers, and boost your customer satisfaction.

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