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Consumer Relationship Management And Its Importance

Customer Relationship Management
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The growth of a business depends on different aspects. But the most talked about aspect that is relevant not only today but was also important yesterday and will be even more important tomorrow is customer relationship. With the invention of internet customer relationship management has been improving and people are constantly looking for improved ways to improve customer relations. This is precisely why CRM was invented. CRM stands for Customer Relationship Management. In this article we are going to briefly discuss importance of customer relationship management.

Why Is Customer Relationship Management Important?

Customer relationship is important because it helps in the growth and development of an organization. Below mentioned are reasons why customer relationship management is important for the growth and development of a business.

  • CRM Builds Brand Image– Customer relationship management work towards creating a bond with the existing customers. So that businesses have loyal customers who keep coming back to them without any added efforts. Loosing permanent customers can be harmful for the image of the business. With the help of CRM the risks of losing out on permanent customers can be minimized. (Parish ,et.al,2010) Therefore it can be said that customer relationship management helps businesses find customers who are loyal to their business and help their business grow through word of mouth.
  • Increases Sales– A strong bond between customers and suppliers increases sales. First-time buyers are easily converted into permanent buyers. Therefore it can be said that CRM helps double profit margins. To know more about how to increase sales marketing students can now avail instant assignment help from SourceEssay experts.
  • Improves After Sales Service-  Customer relationship management not just doubles profit margins by increasing sales but it also helps improve after sales service. With the help of CRM tools customers who have purchased a product can be traced. And their experiences can be documented and used as feedback that helps in improving the quality of their service. Not only that but because of customer relationship strategies customers are treated even after they finish purchasing a product. Because of which they feel like coming back to the same company again and again.  This helps build a positive impression and builds a image of the brand. Post sales service is very important because the quality of after sales service provided to the customers after the product or service has been availed derives the chances of converting a first timer into a permanent customer.
  • CRM Makes Business Reliable And Dependable-  Because the CRM builds a brand image that defines the credibility of the company it is easy for customers to relate to the brand and depend on it even if they are newly introduced to it. Therefore when customers are stepping out make multiple purchases the brand value makes it convenient for them to decide which company to go for.
  • CRM Makes Customers Feel They Are Valued–  Further customer relationship management helps customers feel they matter to the company because of which customers feel they are connected to the company and  become friendly.
  • CRM Spreads Popularity– With prolonged good customer relationship management, customers feel obliged or happy to advocate your brand to others and that’s how your business rises to success and permanence. Instant essay help from SourceEssay makes students understand the advantages of prolonged good CRM support in details.

By now it is clear that customer relationship management tools and strategies if implemented in the right direction can be advantageous in many forms as mentioned above. But, when we look at the benefits that CRM can provide to our businesses the first question that arises in our minds is that how does customer relationship management help business grow.

Functions Of Customer Relationship Management

  • Collecting Data– CRM tools store information about the customers. This information is not limited to basic information. It extends up to collecting their personal information. This information is crucial for the analysis of the wishes and tendencies of each customer. Once you know this, you will know what to offer them. (Lacej ,et.al, 2015) This further helps acquire more and more customers.
  • Products That Are Customer Oriented– The CRM system will not only have the basic purchase history but all the details of the customers so you can even track the purchase details and resources of the customers. This facility helps businesses produce products that are customized Therefore when students analyze the data and know what price category, what brands, what products, and what time of the year or day the target customers like to shop, you will be able to present the right thing at the right time to the right people and you can never go wrong with that. 
  • CRM Helps Businesses Become Service Ready–  CRM tools helps segregate customers according to their product preferences, price group and location. With this information you can smartly allocate customer managers or account managers to different areas and equip them with the required products and teams. This will help you promptly serve every location. SourceEssay essay helpers help students understand the basics of how a business becomes service ready by implementing CRM tools.
  • CRM Optimizes The Probability Of Sales-  CRM helps track the time when of the day each customer is more likely to visit a site to make a purchase. You will know the festive season or any time of the year that is most likely to raise demands of a particular product in a particular area.
  • CRM Retains Customers-  With CRM, you can gather information from numerous sources including social media and keep it composed in one spot, so you can utilize it when the need be. By giving mindful client assistance, reacting to demands auspicious and taking into account the client needs consistently, a business can improve levels of consumer loyalty.
  • Data Can Be Accessed Anywhere Anytime-  The data on an integrated CRM system is centralized so that it is available at any time and to any authorized person on any authorized device whenever needed. You don’t waste valuable time or a great opportunity waiting for the system to upload or the data to be extracted. This increases productivity which not only directly translates into increased sales, but also creates a reputation for your business.
  • CRM Builds A Positive Reputation- CRM system helps you with everything so that you can perform with perfection and promptly, without any delay at all. The brand image will be brilliant. Customers will look at your company as one of the most efficient ones in the market. Your team will be the best.
  • Boosts Image On Social Platforms-  CRM system brings to you more customers and shows you how to sustain a relationship with them and turn them loyal to your brand. They will do mouth publicity for you over social media platforms in which they are active. Not even this the organization can make testimonials of their user and upload on social media platforms to gain trust from others. So, the CRM system not only helps the present business and profits but also helps you secure a steady future for your business.
  • Reduces Cost-  CRM systems are generally cost effective.
  • Automates Day To Day Activities– There are various works which are required to be done on a daily basis for smooth functioning. Works like sending emails, addressing legal issues, taking up calls, Created reports. After taking off these works off, the representative will work on closing the leads.

Conclusion

Thus to conclude we can say that customer relationship management can prove to be a game changer for business houses if it is implemented correctly. Once students start properly using CRM software they will see the importance of CRM in the profits of your business and the running of their office.

To gather more knowledge on customer relationship management students can now avail management assignment help from SourceEssay experts.

References

Parish, J. T., & Holloway, B. B. (2010). Consumer relationship proneness: a reexamination and extension across service exchanges. Journal of Services Marketing.

Fu, H. P., & Chang, T. S. (2016). An analysis of the factors affecting the adoption of cloud consumer relationship management in the machinery industry in Taiwan. Information Development, 32(5), 1741-1756.

Lacej, A., & Kalaj, E. H. (2015). The effect of consumer relationship management on satisfaction and loyalty: A focus on Albanian tour operator business. Mediterranean Journal of Social Sciences, 6(2 S1), 635-635.

Lemon, K. N., White, T. B., & Winer, R. S. (2002). Dynamic customer relationship management: Incorporating future considerations into the service retention decision. Journal of marketing, 66(1), 1-14.

Thrassou, A., & Vrontis, D. (2009). A new consumer relationship model: the marketing communications application. Journal of Promotion Management, 15(4), 499-521.

Veloutsou, C. (2007). Identifying the dimensions of the product-brand and consumer relationship. Journal of Marketing Management, 23(1-2), 7-26.

Bloemer, J., Odekerken-Schröder, G., & Kestens, L. (2003). The impact of need for social affiliation and consumer relationship proneness on behavioural intentions: An empirical study in a hairdresser’s context. Journal of retailing and consumer services, 10(4), 231-240.

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