Question

Highlight and describe the CRM strategy articles you have researched Explain why CRM strategies are iterative processes Explain why Customer Relationship Management strategy must be aligned to the organization's mission, purpose and business strategies. Provide an argument why strategic CRM is important to small business owners and entrepreneurs.

Answer 1

CRM stands for customer relationship management. It aims at enhancing the relationship of a system with its customers

There are basically 2 types of CRM:

• Operational CRM: focused on managing the daily operations of business
• Analytical CRM: facilitates consumer acquisition process and suggests efforts to retain them

The various components of CRM are:

• Sales force automation: Helps in tracking the customer interactions with business
• Marketing automation: Repetitive tasks are automated in the marketing domain to save costs as well as efforts and time
• Workflow automation: facilitates the business by streamlining the complex workloads
• HRM: CRM facilitates the human resource management by maintaining employee information throughout his lifecycle at the company
• Analytics: CRM facilitates the integration of data analytics in consumer data and demand pattern to predict the future market trends

The importance of CRM:

• Helps in building relationship and establishing connect with the customers
• Cross selling becomes easy with the integration of CRM in business
• Client attrition decreases considerably as their satisfaction rate gets increased considerably
• The integration of CRM saves resources and thus facilitates cost savings in business

CRM strategy is developed with the objective of developing the consumer base of an organization to an intangible asset of the company and for facilitating market valuations. CRM strategies can be considered to be iterative as it progresses and develops along with the development of the overall organization. A CRM Strategy must be aligned with the vision and mission of the company. This helps in enhancing its overall effectiveness.

Some of the ways in which small business owners and entrepreneurs can use CRM software to enhance their customer experience are:

• CRM software can be used to have a better understanding of the demands and requirements of the customer
• Customer’s demand pattern and trend analysis is facilitated by the use of CRM software, which makes the companies prepare to cater the future demands of consumers
• Customer interaction and connect can be facilitated with the help of personalized customer care platform
• Every company can customize its CRM software on the lines of its value system and culture, thus enhancing its brand image among the customers