Customer relationship management is a term used to describe all the activities, strategies and tools used by a company to manage the way it interacts with its customer base. The right strategy can help you build strong relationships with your customers and increase customer loyalty and retention. However, for it to work, your strategy must align with your sales and marketing plan, as well as your customer service department. It must also take into account the four core areas: technology, strategy, processes and people.

In this publication, you will discover everything you need to know about customer relationship management. We'll explain what it is and how understanding the key elements of customer relationship management can benefit your business. Don't forget that you can contact us to strengthen your business.

What is customer relationship management?

Customer relationship management is a combination of practices, strategies and technologies used to manage and analyse customer interactions. It typically includes analysis of data collected from a range of customer touch points, such as website visits, phone calls, live chat, direct email, marketing campaigns and social media.

The goal is to improve customer relationships, increase loyalty and retention and drive sales. However, to be successful, your strategy must take into account the following key elements:

Technology: Applications and infrastructure. When people talk about customer relationship management, they usually mean a system, which is used to manage digital interactions with current and potential customers. Data is collected from the entire customer lifecycle, including marketing and sales platforms, digital commerce and customer service interactions.

Strategy: Business goals and objectives. Your customer relationship management strategy should be based on clear goals and objectives. It should also align with your company's positioning, culture, vision and values.

Processes: Procedures and business rules. For a strategy to work, all internal and external processes must be customer-centric. Do they provide the best possible customer experience? Do customers trust what you do with their data?

People: Organisational structure, skills and incentives. People form the core of any strategy. Are employees focused on customer engagement? Are departments cross-functional? Is there top-down commitment from all staff? Are bonuses linked to customer satisfaction objectives?

Why customer relationship management matters

Think of it as a business philosophy based on listening to customer needs and behaviours and using that information to build stronger relationships and generate more leads. It should form the basis of your business strategy.

Helps you manage, automate and optimise customer data

A good customer relationship management system takes into account all touch points in the customer lifecycle. This can include phone calls, social media messages, website interactions and emails. It collects data when a customer tweets about your company, files a complaint, submits a review or raises a problem. By analysing this data, you can build a picture of who your target customer is, how they typically behave, what they want and expect from your business and how you can win them over.

Helping you learn about your customers and build relationships

For a company to succeed in business, it needs to understand its customers. The data you collect through your CRM solution can help you understand what motivates your customers and how you can keep them happy. You can then use this information to communicate in a way that addresses their needs and wants. This will create a greater sense of trust and loyalty and help cement a lasting relationship with all your customers.

Helps you identify and categorise potential customers

Customer relationship management data can be used to optimise marketing campaigns using a data-driven approach. This can help you better understand your sales pipeline and give you a clear view of all leads and opportunities so you know where your time and attention is worth investing.

Better Relationships = Greater Customer Satisfaction

CRM data doesn't stop there. The better the relationship you have with a customer, the more likely they are to have a positive experience with you and return. In addition, a customer relationship management solution centralises all your customer data so you can access what you need in the blink of an eye. This makes it much easier for your customer service representatives to address any issues that arise so that all your customers leave with a smile on their faces.