Crafting the Customer relationship management Definition

Crafting the CRM Definition and Philosophy - It’s the power of computing that truly drove the innovation within companies all over the world. The software provided by ACT! and Gold-mine would change the very nature of customer relationships.

This revolution eventually laid the red carpet for future companies, including Salesforce, Marketo, Exact-Target, and Nimble. Before we get into the future, let’s break down the philosophy and definition of Customer relationship management.

Optimizing customer relationships The year was 1995, and the research firm Gartner coined the first definition of Customer relationship management  “Customer Relationship Management is a business strategy with outcomes that optimize profitability, revenue, and customer satisfaction by organizing around customer segments, fostering customer-satisfying behaviors, and implementing customer-centric processes.”

Gartner also introduced the Eight Essential Building Blocks of CRM, a list that gives us an excellent starting point for this Article.

  •  Vision: What’s your company’s vision? Are you including your mission statement and goals in your marketing strategy? They also apply to the Customer relationship management philosophy of driving customer-centric data and communication.
  • Strategy: What’s your strategy for reaching the customer? How do you manage the relationship before and after the sale?
  • Valued customer experience: In this customer-centric world, experience is paramount to everything else. By using CRM to manage your contacts, you’re creating a truly valuable experience for your customers.You’re remembering their needs and wants!
  •  Organizational collaboration: Do your employees work together and share data? Collaboration is the key to success in many organizations.
  •  Processes: Are your sales processes streamlined? Do you use software to manage the data and development of prospects?
  •  Information: Customer relationship management allows you to store information that would otherwise be lost to paper, trash cans, and spilled milk.
  •  Technology: Do you build technology into your overall marketing strategy? Allowing great technology behind CRM is essential to success.
  • Metrics: Data is king in the world of Customer relationship management. Are you managing your metrics effectively?

These eight building blocks are just the beginning to developing the CRM strategy. You must also take into account the social and business side of Customer relationship management  which (as discussed earlier) allows your company to truly be customer centric. 

A customer-centric strategy involves using computing power to optimize customer relationships. Remember Marge? Imagine managing sales data for five thousand different Marges?

Predicting the future of CRM

many experts were coining the future of CRM as social CRM, otherwise known as CRM 2.0. We still have a long way to go as far as perfecting the idea of customer relationship management is concerned.

The future will be owned by the individuals, companies, and software platforms that focus on the idea that customers are the center of all strategies. That’s what social CRM is truly about.


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