A Customer Relationship Management system is an efficient business strategy. It is useful for companies as it works to identify and manage the profiles of acquired or potential customers in order to create activities to maximize profits studying needs and expectations.
Anyway, the CRM is not just a matter of marketing or information system, but it is an approach linked to strategy, communication, integration between companies processes and people. This kind of system focuses on the customer.
However, we can split the CRM in three macro areas:
Let’s have a quick look into all of them.
The operational CRM focuses on using software applications which help incorporate the various sets of information available on each customer into one useful file. For example, it will bring together a client’s contact information, purchase history and any previous communication they have had with the company on one web page so that the employee can provide them with rapid service and response. This kind of CRM software solutions provides a support centre to the sales, marketing and customer service departments. As a matter of fact, we are talking about:
- back office for the management of orders
- supply chain and transactions
- front office activities
- mobile office activities
- contact and call centres
The high tech expertise of CRM gives access to information about customers as well as giving a clear view of customers needs.
An analytical CRM is the system that collects and analyses data. This system allows to organize all the knowledge to support management decisions. It will look at data from all the different databases and then will come up with patterns and trends. This allows the company to look at the data from the wider angle, allowing for better creation of long term strategies for sales and customer management. This system consists of the following components:
- Data warehouse – is a type of database used for collecting, integrating and preparing customer data.
- Data mining – is a collective term used for different tools which analyze large amounts of data automatically resulting in information and correlations. Therefore, you can form hypotheses from customer requirements and activities using this tool.
- OLAP tools – represents a complex analytical tool used to validate hypotheses derived from previously gathered information.
As a matter of fact, with the help of an analytical CRM, companies can derive recommended actions from large quantities of customer data which would be too much for one person to process.
This kind of CRM allows companies to establish personalized relationships with clients through different channels. It is constituted by all the communication tools that a customer could use to interact with the company. For example: email, calls, web pages etc. Therefore, that is an approach in which the various departments of a company share any information they collect from interactions with customers. In addition, the main purpose is to improve the quality of customer service. As a result, the company increases customer satisfaction and loyalty.
The main characteristics of this approach are:
- Interaction Management – This process deals with designing the communication or interaction channel approaches within an organization. In the end, it is useful to enhance the extent of communication between both the parties. The communication channel depends on the customers’ preference on how they require the interaction to be dealt with. So, considering that preferences, it is important for the company to just fulfill these needs.
- Channel Management – Thanks to new technologies, it is possible for the company to improve channel interactions by contacting customers in an efficient way.
In conclusion, we’ve seen how different kinds of CRM systems provide different advantages to the company. So, if you are thinking to implement this kind of system in your company, you should first look at the long-term strategy you have for your company. Which are the services you wish to provide to your customers?
Lastly, after this analysis, you could start to think about the CRM system which could be most beneficial for you and for your organisations goals.
How can Arema Connect can help you business?
We provide our clients with the necessary customer touch points which include:
- Live Chat
- Inbound Call Management
- Email Handling
- Social Media Monitoring
- SMS Text Message
Contact us if you’re interested in adopting an Omnichannel strategy in your retail!
I am a Communications graduate working as an intern at Arema Connect on a European placement. I have a background in Communications Sciences and foreign languages from University of Calabria. I have worked in a vast range of different activities within Communications departments including: press and media. At Arema Connect I am supporting the Marketing department. After the completion of my internship, I would like to travel and gain additional experience in the communications field.