Customer relationship management (CRM) is a business strategy geared toward improving customer satisfaction and loyalty by creating experiences that are unique to each customer. This is achieved through combining technology, processes, and collaboration between departments.
In the past, maintaining these relationships required manual and laborious processes. Businesses used to store customer contact information in filing cabinets, rolodexes and spreadsheets. They weren’t shared with other departments and often led to lost sales opportunities and miscommunication. With the advent of new technology platforms for marketing that offer a central database for customer data, keeping track of relationships is much easier and more effective. These systems are referred to as CRM systems.
CRM tools simplify and centralize customer data and data, allowing teams to collaborate to cultivate leads and improve the overall sales and marketing funnel. In addition to keeping track of customer and lead interactions, CRMs can help companies identify the most effective leads by scoring and prioritizing them, so that salespeople only get in touch with prospects who are qualified. This leads to higher conversion rates and higher purchase values, and can dramatically reduce the time needed to close a deal.
Personalization is also among the most important elements of a successful CRM strategy because it shows customers that their business is appreciated. From sending a personal thank-you note following a sale, to tailoring an item or service to satisfy the needs of a specific customer that creates a feeling of connection that drives sales and brand recognition.