What is CRM?

The simplest, broadest definition can be found in the name: CRM is a comprehensive way to manage the relationship with your customers — including potential customers — for long-lasting and mutual benefit. More specifically, modern CRM systems enable you to capture information surrounding customer interactions and integrate it with every customer-related function and data point. The resulting information mosaic is then used to create and automate a variety of processes that identify, and describe, valuable customers. Most important, these processes help you personalize new and ongoing interactions to cost-effectively acquire, stay close to, and retain these "good" customers. Put another way, there are good customers and not-so-good customers. Can you tell them apart? What will it take to keep the good ones good (or make them better) — and how can you get more of them? Can you improve the not-so-good ones — and is it worth the effort? Now apply these principles automatically, to your entire customer base and prospect pool, as your business and the market evolve over time. That is CRM.

CRM: The Payoff
On the plus side, customers with successful CRM systems report higher profits; lower costs to attract and retain customers; greater customer loyalty; and smoother, more streamlined workflows. Specific benefits cited include: More timely and targeted customer services

+ Increased per-customer revenues
+ Greater cross-sell and up-sell success
+ Trimmed sales cycles
+ More-efficient call center operations
+ Improved sales forecasting
+ Fewer customer problems
+ Better-informed marketing decisions