The term “what is CRM software?” is one that you are likely to hear repeatedly. This is a great question and the answer should be simple. Customer relationship management is simply a form of business management that seeks to improve customer satisfaction by automating previously manually oriented processes and improving the level of service provided by a company.
The original concept of this software was created back in the 1970’s by two men named Robert Kaplan and David Norton. They conceptualized the idea as a way to help companies maximize their profit potential. Simply put, it is used to collect customer information, organize it, analyze it, and make suggestions for changes that will benefit the customer. These suggestions are usually implemented in a relatively short period of time.
In order to answer the question, what is CRM software program, we must look into how these concepts were originally developed. It was initially used by large companies to analyze the needs of their customers and then provide suggestions on how to improve the business. Eventually, small business took up the technology and started using it as well. In today’s world, more businesses use customer relationship management. Without it, many businesses would not be able to survive.
So, what is CRM software really? According to Wikipedia, it “is a relational database management software (RDBMS) that aims to enhance business intelligence through the collection, processing, analyzing, and sharing of data regarding customer interactions with a particular business”. In essence, customer relationship management keeps track of all customer information such as preferences, demographics, spending habits, and product histories. These details are usually stored in a relational database. Such a system is designed to effectively provide business managers with important data such as current sales figures, future sales growth trends, and common business practices among a targeted group of customers.
However, a CRM software program does much more than keep track of customer details. In fact, it can be considered a business intelligence tool. This is because it aids businesses in determining their strategies for the future. Businesses usually develop new marketing strategies based on data analysis. For example, if a company plans to launch a new product line, it will do a comprehensive analysis of its target market, competition, and potential market share. The CRM software can help this new strategy formulation process run smoothly.
As mentioned earlier, a CRM software program can be considered a business intelligence tool. However, it does much more than provide figures. This type of software can help in making strategic decisions. For example, it can forecast sales trends, average buying seasons, and holidays. It can also determine whether a product or service is popular among buyers. Thus, it can tell whether a company should introduce a new product or offer a discounted version of an old product.
A CRM software can also help a business in implementing marketing campaigns. It can help sales representatives communicate with customers effectively, by providing details about current offers and promos. These details can allow sales representatives to know what type of incentives will motivate consumers to buy more. The software can also help in analyzing sales leads, and evaluating return on investments (ROI) by sales representatives.
In essence, the main purpose of CRM software is to enable a business to analyze customer data, and understand the behavior of buyers and sellers, and then adapt strategies accordingly. The CRM program should be able to provide comprehensive information about the sales and customer behavior. The software should also be easy to use and install by any sales representative. The software should have features that allow the sales team to customize it to meet the unique needs of each individual business.