What is a CRM? How does it work?

Dec. 19, 2018, 11:39 a.m.


1 Answer

Dec. 19, 2018, 11:41 a.m.

Modern customer-relationship management (CRM) systems are digital platforms designed to monitor and interact with current and potential customers. They compile data from various sources and allow to better understand customers’ behavior and needs. CRM collects many types of data: from gender, age, education, and place of residence to purchase history, spending power and level of satisfaction, can be used in making a detailed customer profile. Monitor how people access your services, how much time they spend on your site, whether or not they respond to calls to action. All those things, and much more allows you to customize your approach. But for all this information to be useful, it has to be properly categorized, readable and put into a system which is able to utilize it. Once your system has data it can work with, you can use it for a variety of purposes. For example, call centers select their targets based on this data. They also refer to it during calls to adapt their approach. Separate email sending lists can be created to better fit specific groups of clients. Many issues can be foreseen and resolved by analyzing trends, like an increased number of complaints among a certain demographic. One of the most valuable benefits of a good CRM system is the ability to get everyone in your company on the same page. It’s easy to convey strategy, coordinate efforts and monitor progress, when information is readily available, even on mobile devices. Unfortunately, It’s difficult to keep the data pool clean from outdated and duplicated entries. Poorly organized and analyzed data can lead to erroneous conclusions and misguided actions. Storing customer information can also require expensive legal support, to avoid misconduct. Many companies don’t use their CRM systems despite good intentioned initial efforts to do so. They are a powerful tool, but they need proper maintenance to be effective.