Customer relationship management (CRM) is an approach to business that focuses on improving customer satisfaction and loyalty through creating experiences that are unique to each customer. This is achieved by a combination of processes, technology, and collaboration across departments.
In the past, maintaining these relationships was a tedious and manual process. Companies kept customer contact information in rolodexes and filing cabinets, or in spreadsheets that were often not shared with other departments, which led to a loss of sales opportunities and miscommunication. Maintaining relationships has become easier and more effective with the advent of new marketing technology platforms that provide a central database for customer data. These systems are called CRM systems.
CRM tools streamline and centralize customer information making it easier for teams to collaborate to cultivate leads and improve the overall sales and marketing funnel. In addition to tracking lead and customer interactions, CRMs can help companies identify the most effective leads by scoring them and prioritizing them, ensuring that salespeople only get in touch with prospects who are qualified. This can result in higher conversion rates, buy values, and decrease the time it takes to close a sale.
Personalization is one of the most important aspects of a solid CRM practice because it lets customers know that their business is truly valued. From sending a personal thank-you note after a sale, to tailoring a product or service to meet the needs of a specific customer and creates a sense of belonging that leads to repeat purchases and brand advocacy.