The Importance of Customer Relationship Management Systems

Customer Relationship Management Systems are crucial for the success of businesses. They were introduced when business leaders acknowledged the need to manage customer information using technology. CRM systems aim to enhance customer satisfaction and ultimately boost company revenues. According to Gardner, CRM is about optimizing profitability, revenue, and customer satisfaction by organizing around customer segments and implementing customer-centric processes. Without a focus on client retention, companies risk losing their revenues. It's important to have systems in place to monitor, track, and analyze customer needs to ensure effective customer service and keep clients returning.

Customer demands for service have risen over time, making it essential for companies to prioritize customer relationships.CRM Systems are essential for building lasting relationships with customers, creating value for both the company and the customer. Businesses should rely on CRM systems to become market intelligent, utilizing data for various purposes such as customer service, sales, marketing, and forecasting. Companies that reengineer to become market intelligent can increase revenues significantly.

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Operational CRM systems, like call centers and websites, directly address customer needs and support business processes such as service, sales, and marketing.Operational CRM systems are divided into two categories: Customer facing applications: are applications where there is a direct interaction tenet the customer and actual people from the organization's sales, customer service, marketing, campaign management and other related departments.Customer touching applications: is when customers interact with a system rather than with a person.They use technology or applications set by the company for their customers.Some examples are customer loyalty programs, technical information, reviews, research and compare products.

Analytical CRM systems Analytical CRM systems are the analysis and evaluation of customer information using business intelligence.It is the back office of CRM systems in which there is no direct contact with the customer.Analytical CRM systems allow customer data to be measured and used to identify trends, business opportunities, competition, etc.Data mining, business intelligence, customer data warehousing are some examples of analytical CRM systems.On demand CRM systems On demand CRM systems (Rainier) is a "CRM system that is hosted by an external vendor in the vendor's data center." The benefits of an on Demand system is that there are no hardware requirements and set up costs are low.The drawback of On Demand CRM Systems is that it cannot be customized to suit your specific business needs.This specific type of system is attractive to certain customers due to its quick implementation and lower cost compared to an On Premise CRM System. Sales Force is a famous vendor for on-demand CRM systems, helping customers save a third of the cost of a custom database implementation with a low monthly maintenance fee. On premise CRM systems are tailored for a specific company, requiring the purchase or lease of infrastructure and installation in the data center. This option is suitable for larger companies seeking complete control, though it can be costly and less flexible at times. Open Source CRM Systems provide source code for customization, allowing clients to tailor their systems to meet their needs and increase success. Mobile CRM systems are designed to be accessible and function on mobile platforms, enabling organizations to manage customer interactions through devices like tablets and smartphones. The Hard Rock Hotel (Rainier) in Las Vegas faced server issues leading to incorrect orders due to high noise levels at their bars and nightclubs.They opted to develop a mobile CRM system with the assistance of Kickback Mobile, enabling customers to place orders from their smartphones and have them brought to their table by a server. Customers simply had to download the app to begin ordering.

In a case study about USA Fact, an Internet pre-employment screening company that serves fortune 500 companies and non-profit organizations, faced a problem with Sugar CRM in 2013. Following a change in management in 2010, the new executives determined that Sugar CRM was not adequately supporting sales and operations, resulting in lost user adoption and inefficiencies. To address this, they needed to create a sales platform to allow for customizations and streamline operations cost-effectively. By working with PepsiCo to expand Sugar's services, USA Fact saw an increase in revenue, reporting capabilities, web to lead processes, and quote functionality. This led to a 20% revenue increase and the best sales performance quarter in 2010, with a reduction in sales cycles from 6 months to 3 months within the same week of an inbound call.