The CRM Software Guide

March 29, 2007

The True Meaning of CRM:

CRM, or Customer Relationship Management means many things to many people, and therefore it is hard to explain it in one fashion to everybody.

Throughout my many years of experience working with different companies implementing different CRM strategies and CRM software solutions, I have come up with few ideas that should be the basis for any company considering CRM.

While industry analysts and professionals are often saying the correct thing about CRM, they still make it harder for the average person to grasp.

So, to answer the question of what CRM is? Lets look at business realities, and conditions:

1) Every business must have customers to generate revenues.

2) Each customer costs the company an average amount of money to acquire and sustain.

3) Customers need to get their money's worth before they buy again.

4) Customers can move to other competitors if the offering is right or if they are not happy.

5) a Repeat customer costs less, since you don't have to spend the marketing money again.

From the above, we learn that the customer is the most important part of any business, competition can steel your customers if you are not proactive, and the cost of keeping current customers happy is less than the cost of acquiring new ones.

If you also consider that customers, are people and they like to be treated like ones, then you can understand the Relationship in CRM (Customer Relationship Management).

So we know the Customer, and the Relationship. The Management is your company's attitude, rules and solutions that manage the process of selling to and making customers happy.

Before you start investigating CRM software solutions, you must first understand your customers, and plan the strategies that you think will make them happy and make them repeat business. Once your strategies are in place, then you must rally your troops so your employees understand your customer centric goals. After all if your employees don't embrace the strategy, they will not embrace the system.

Once this is done, you should look for a CRM software solution that can be customized to fit with your business processes, not the other way around.

Comments (1) for "The True Meaning of CRM"

By the way, great article, but I can do better in fewer words! Here: CRM is : Making customers happier so your company makes more money. By Jade Wilson - 3/29/2007 5:48 PM