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CRM Is Customer Relationship Management, What Does It Mean?

14 January 2022

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In the business world, the use of CRM is necessary to maintain good relationships with customers. CRM is short for Customer Relationship Management or Customer Relationship Management. Without the existence of CRM, a business cannot maintain bonds with customers that may affect sales results.

CRM is a system that can collect customer data, conversations, and products that are of interest to customers. All of this information will be stored in a single database that can be accessed at any time. This system allows a company or a business to better know the market needs when viewed by its customers. Before going any further, first, know what CRM is.

Understanding CRM
CRM is a system that is used as a means of approaching consumers in various ways. One example of CRM is e-CRM or what is known as electronic CRM. This system is widely used by large companies to keep in touch with their customers, either through a web browser or email.

Not only able to maintain relationships with customers, but CRM can also be used as a tool for contact management, workflow processes, and productivity. Therefore, CRM is not only related to sales results, but also to the performance of its employees.

Stages in CRM
In its implementation, there are three stages in the use of CRM, starting from getting customers, providing product value, to maintaining customer relationships. Here's the explanation.

1. Get a new customer
The first process that CRM can do is acquire new customers. This can be achieved by making a good impression on customers, so they feel welcome when they visit your business.

2. Provide product value
The next way that can be done to maintain customer relationship management is to do cross-selling and up-selling. Cross-selling is a marketing effort carried out by recommending additional products to complement the products already owned by consumers.

Meanwhile, up-selling is a marketing technique by promoting the same type of product with better quality. In both of these ways, you can do to increase the intensity of relationships with customers.

3. Retain customers
Not only focusing on finding new customers, but in doing business you also need the ability to retain customers. You can do this by responding to any suggestions or complaints from them, as well as evaluating to provide higher quality products and services in the future.

The importance of CRM for business
Because it is closely related to customer satisfaction, customer relationship management has important benefits for business continuity. Here are some of the benefits of CRM for businesses.

1. Help identify potential customers
A CRM system is able to accurately identify potential customers from your business. This ability will encourage the sales team to immediately carry out promotions that can attract the interest of these potential customers. In the end, this system will help increase the company's sales results.

2. Strengthen the relationship between business and customers
Not only can predict potential customers, but CRM systems can also make customers recommend your business to others. If the service received is good, then consumers tend to come back to shop again, and even recommend the product to others. Thus, your business image will be better in the eyes of more people.

3. Increase brand loyalty
Brand loyalty is customer loyalty to a product. It is caused by the feeling that arises in customers that a business really understands their needs. After that, customers will be led to be more involved in the advancement of the brand by using a CRM system.

4. Support work process efficiency
Besides being able to acquire new customers and retain old customers, a CRM system can also support work efficiency. This is due to the intelligence of the CRM system that can know the market needs well. Thus, the work of the marketing division can be completed more quickly.

Examples of CRM in business
Some popular examples of implementing CRM are email and apps. CRM that is applied to email is usually in the form of an email subscription (subscription), which is an email delivery service about the latest product or service from a business. Then, CRM in the application is usually in the form of giving ratings and comments which are then submitted to be used as evaluation material for the company.

From here, you already know that CRM is customer relationship management that is important for the continuity of a business. In relation to CRM, VADS Indonesia as a company engaged in service improvement and customer satisfaction provides various business solutions for the business you are running. Visit this link to get CRM services from VADS Indonesia!

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