CRM, in its basic form, means collecting and managing detailed information about individual customers and carefuly managing customer "touch points" in order to maximize customer loyalty. It integrates everything that a company's sales, service and marketing teams know about individual customers to provide a 360 degree view of the customer relationship. This allows customer facing employees in such areas as sales, customer support, and marketing to make quick yet informed decisions on everything from cross-selling and upselling opportunities to providing high (or low) level of customer service and to create offers tailored to specific customer requirements/ tastes.
For example, have you ever ordered pizza from a renowned outlet for door delivery? The second time you called them for another order, they called you by your name & they did not need to take down your address? This is CRM in action. The first time you called and gave info, it was entered by the sales guy in the system for later use by any sales guy. Ofcourse, now any sales guy will know what kind of pizza you like, and your price range. If they have observed that you were receptive to ordering extras, everytime the salesman can try to upsell you.
CRM has created problems for customers as well. There was a reported case of a plane passenger being denied special service, since it was recorded in the CRM system that sometime in the past he misbehaved with a counter clerk at the airport!!!
Actually, that is one of the aims of CRM. It is a method to capture highest value from customers and making customized offers for these premium customers. This will mean that customers who do not offer value to the company will often get low levels of service or will be charged high for some services. This is to weed out less profitable customers.
Credit card companies use data on customer interactions, their spending patterns, etc to design highly targeted special offers. For example, if they find you regularly using credit card for purchases at shopping malls, you are likely to get mails from them informing you of discount sales at shopping malls when you use your card.
They will ofcourse record if you have called them and abused them. So the next call center agent will know how to talk to you or treat you.
CRM has its benefits and pitfalls. Customers who are being denied good service because they cannot pay huge premiums will find CRM application unfair. From the companies' standpoint, many CRM installations have not achieved the desired result. This has, however, to do with mostly wrong implementation.
There are numerous websites who could give you more detailed and technical information regarding CRM. www.destinationCRM.com is one of them. As you said, I find crm2day.com rich with advanced information.
Trust this helps to give some rudimentary ideas about CRM.
30th January 2007 From India , Delhi
you have very nicely narrated the information on CRM. Very good job!!!
Meanwhile can you give some format's of MIS for customer database.
Awaiting similar reply as you have done earlier for Ms. Khushboo.....
16th September 2008 From India , Mumbai