What is CRM?

The CRM, or Customer Relationship Management, is a business strategy that takes into account all the new technologies to anticipate and understand all the needs and desires of consumers.

The goal of CRM is to identify consumers interested in purchasing a product or service that the company offers.

In computer language, CRM refers to software structured for managing the relationship with customers to increase value for the customer and for the company.

Therefore, CRM is a process that allows the company, in addition to acquiring new customers, to maintain relationships with those already loyal.

CRM Procedures

As we have already said, CRM uses current technologies to manage customer relationships, it is based on analysis systems to search for information useful to the company itself.

The CRM collects data related to:

• The customer's purchasing behavior;
• The daily consumption of products.

Such information is collected and stored in the company's database.

Through data analysis, the company is able to monitor:

• The degree of customer satisfaction;
• The actions to improve the service.

Thanks to CRM, it is possible to promote customer loyalty over time, satisfying their needs and desires and quickly adapting to changes in their purchasing and consumption behavior.

To have an effective business strategy, however, it is important to use narrowcasting distribution channels to facilitate dialogue with customers, allowing for a better understanding of their needs.

Structure of the CRM

Different phases of CRM can be defined:

• The insertion into the database of clients or potential clients;
• The information provided by the analysis;
• The creation of the customer portfolio;
• The planning of strategies to be implemented to increase the value of the customer portfolio;
• The execution of these strategies;
• The verification of the achievement of the set goals.

The main objective of a CRM program is to retain customers who generate more profit and profitability over time.

Indeed, CRM is based on the assumption that existing customers can lead a company to success because a loyal customer tends to always buy that type of product from that type of company.