What is ‘Customer Relationship Management – CRM’
Customer relationship management (CRM) refers to the principles, practices and guidelines that an organization follows when interacting with its customers. From the organization’s point of view, this entire relationship encompasses direct interactions with customers, such as sales and service-related processes, and forecasting and analysis of customer trends and behaviors. Ultimately, CRM serves to enhance the customer’s overall experience.
With the growth of the internet and related technologies, customers are concerned about the privacy and safety of their personal information. Therefore, businesses need to ensure the storage and analysis of their customer data have the highest levels of protection against cyber criminals, identity theft and other breaches of security.
BREAKING DOWN ‘Customer Relationship Management – CRM’
Elements of CRM range from a company’s website and emails to mass mailings and telephone calls. Social media represents one way companies adapt to trends that benefit their bottom line. The entire point of CRM is to build positive experiences with customers to keep them coming back so that a company can create a growing base of returning customers.
Increasingly, the term CRM is being used to refer to the technology systems companies can engage to manage their external interactions with customers at all points during the customer lifecycle, from discovery to education, purchase and post-purchase. With an estimated global market value of over $40 billion in 2018, CRM technology is widely cited as the fastest-growing enterprise-software category, which largely encompasses the broader software-as-a-service (SaaS) market. IT research and advisory firm Gartner predicted in a 2017 report that CRM will be the largest revenue driver of enterprise software spending by 2021. Five of the largest players in the CRM market today include cloud computing giant Salesforce, trading on the New York Stock Exchange under the ticker CRM, as well as seasoned technology corporations Microsoft, SAP, Oracle and Adobe Systems.