Basics of CRM
The customer relationship management (CRM) process involves strategic decisions that are based on the needs, input and feedback of customers. Businesses that incorporate CRM processes work from an outside-in model, rather than forcing their ideas on to the customer to build business. The customer is the main driver in a CRM model. Everything from technology to pricing, sales techniques and education revolve around the customer. Departments that serve the customer---including marketing, sales and customer service---are integrated so that budgets and business plans involve all parties.
Marketing
Customer relationship management and relationship marketing are the same thing. Rather than focusing all sales efforts on closing the deal and moving on to the next client, sales and marketing professionals work on building trust and loyalty with existing clients. Customers who feel that they are heard and respected bring repeat business and send referrals. Companies practicing CRM can create databases that contain more detailed demographics and personal data, such as birthdays, previous purchases, family dynamics and other important information. Mass mailings and promotions can then be tailored to specific clients, according to their profiles.
Networking
Beyond data collection, customer relationship management relies on personal interaction with clients through mutual-interest networks, such as industry associations, community groups and philanthropic endeavors. CRM encourages sales and marketing professionals to move beyond sales to communication with customers, based on mutual interests and concerns. Relationship marketing involves give-and-take. In addition to the products and services a salesperson may be offering, marketing professionals may provide business leads to clients who don't make an immediate purchase. Laying a foundation of interaction with a new client is just as important as an imminent deal.
Long-Term Benefits
By focusing marketing efforts on building relationships, a company plans for long-term results. Monitoring relationship-building efforts is tantamount to success. Companies can direct their efforts at the types of clients who are open to a continuing relationship. Partnerships are formed with customers who feel they are part of the company's success, and who strongly believe they are receiving benefits in return for continued loyalty. Clients who do not respond to relationship-building techniques can be moved to a different form of sales management. Monitor time and effort spent, and the results gleaned from each relationship. Time is the primary resource needed to build a strong relational clientele. Marketing efficiency is enhanced when CRM processes and the means to monitor them are incorporated into the strategic plans of any business.
