What is CRM?

Whenever we meet with any person for the first time then we create a good or bad image about him in our mind based on his or her behavior with us. We all practice this thing in our personal life but this concept can also be applied on organizations. Every organization offer products and services to its customers but one thing that takes any specific company upward is its efficient customer relationship management system. Have you ever thought why you use any particular brand of cosmetics, clothes or other items when there are thousands of other brands available in the market? It is due to the fact that that owner of your favorite brand gives respect and high value to you. They remain in contact with you and give importance to your feedback. They do so to make you their loyal customers and the concept which is used behind it is customer relationship management.

What is Customer Relationship Management?

The business owners and entrepreneurs are well aware of this term but if you are new to this concept then I may explain it for you in simple words. Customer relationship management refers to a set of strategies that are adopted by almost every single organization in order to strengthen its relationship with its customers. Companies spend thousands of dollars to develop and implement these strategies. In fact, a customer relationship manager is hired in every organization in order to remain in touch with its customers. You must be thinking that why organizations spend huge money on just developing a good relationship with its customers. It is due to the fact that customers are an asset of any organization as they are the one for which organization is made. Increase in the number of customers means increase in profit so we may say that customer relationship management is indirectly related to profit maximization.

What is a Good Customer Service Today?

Whenever we talk about customer relationship management then it is said that the basic purpose of it is to provide good customer service but how do you define a good customer service? In today’s world, a good customer service refers to:

  • Meeting the expectations of customers
  • Providing high quality service
  • Delivering the service in a timely manner
  • Taking care of customer liking, preferences and taste
  • Continuously improving the service to achieve customer satisfaction
  • Listening to the complains of customers
  • Giving priority to your customers above everything else

If you are fulfilling all the above mentioned tasks then it means you are providing a good customer service to your customers but if you are not fulfilling these basic tasks then you need to review your customer relationship management system.

Old CRM’s software versus New SaaS CRM Tools

Customer relationship management is a technical subject that requires you to adopt latest technology in order to get required results. If we go back to the last decade then organizations used to buy CRM software for building the customer database and doing other related activities. A team of IT professionals was usually hired to run the CRM software. Moreover, routine backups were also required to run them. Huge servers were arranged for running CRM software smoothly. This technique was very costly and it resulted in huge expenses. With the passage of time, new technologies came in the markets that were less costly and more beneficial. Currently, large numbers of organizations are using SaaS CRM tools. SaaS is basically CRM software that is hosted by the vendors on the web. The good thing about it is that it does not require you to hire an IT expert or setup a backup system and efficient server. The interesting thing is that you do not need to pay any cost for its maintenance or investment as it is being paid by your vendor. It has given rise to a flexible customer relationship management system. SaaS also provides various sales and CRM tools to your employees that help them in making new customers and sustaining a good relationship with old ones.