What’s CRM?

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Customer relationship management (CRM) focuses on building long-term relationships with customers through direct and indirect contact methods, rather than one-time sales through advertising campaigns. This includes capturing contact information, using traditional communication methods, providing live customer service, and utilizing social media marketing.

In business, customer relationship management (CRM) refers to the way in which caring for customers can provide better results than focusing primarily on advertising and sales activities. By developing favorable customer relationships through both direct and indirect contact methods, organizations lay the groundwork for better overall growth. Customer relationship management is unlike any other form of marketing in that it recognizes the value in establishing long-term relationships with consumers rather than trying to engage them in a one-time sale through the use of advertising campaigns.

When an organization hopes to acquire more customers and generate revenue, it must come up with a method to keep in touch with more consumers in a non-invasive way. The most basic form of customer relationship marketing involves capturing contact information from websites or store visits so that follow-up contact can be made with customers. This is usually in the form of a follow-up email or survey, which gives the consumer a chance to share their experience and learn more about the organization.

In addition to using technology as a customer relationship marketing strategy, organizations often use traditional communication methods such as telephone or face-to-face meetings. Consumers often visit a place of business on multiple occasions before making a purchase or talking to someone in person. Reaching out to consumers earlier to engage and educate them can result in a favorable experience for consumers so they feel comfortable shopping. It also adds a human touch in a technology-saturated world.

Customer relationship management can also take the form of providing more ways for consumers to talk to a live person rather than just receiving tons of junk mail. Many companies have customer service agents who are available to talk to consumers 24 hours a day, seven days a week. In addition, consumers are invited to complete surveys to evaluate the organization and express any concerns or complaints. With effective customer relationship marketing practices, these issues are resolved quickly and to customer satisfaction.

Another very popular and powerful form of customer relationship marketing used by many organizations is social media marketing. Social media is providing a low-cost means for organizations to connect with consumers on a more personal, non-threatening level, which can yield better results faster. Also, by using social media as a customer relationship marketing strategy, it’s easy to create unique communities in specific niches that attract more genuinely interested consumers, rather than just blindly marketing to everyone.

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