Broadly speaking, customer relationship management (CRM) is an approach used by companies to manage and explore customer interactions and related data with the help of practices, strategies and technologies throughout the customer lifecycle. It is done mainly with the goal of refining business relationships with customers, supporting in customer retention and driving sales growth. It is not only wholesome business but also create strong personal connection within people. Increase of this type of bonding takes the business to new heights of success.
In 1990s CRM concept gradually started getting popular when business world commenced using internet. The current scenario is such that the CRM has become an integral part of businesses with the help of CRM software and interestingly customers also have adopted it naturally. According to Gartner, the CRM software market has reached $26.3B in 2015, which was $23.2B in 2014, indicating a 12.3% annual growth. It is anticipated by the analyst firm that the CRM market would be reaching $36.5 billion by 2017.
So, what is the real use of having CRM for a company?
Let’s see some of the reasons
– To generate a steadfast sales forecasts
– To gather real time market research on customers
– Increase customer retention
– Create actual customer service programs
– Rapidly passing information between sales representatives and customer support representatives
that would in turn increase their efficiency
With the above reasons, it will be easy to know the advantages and disadvantages of CRM. Here are the
- Create synergies:
A CRM system helps in creating synergies across the customer relationship cycle that eventually leads to more productivity as well as efficiency of the employees in handling customer relationships.
- Boosts customer retention:
One of the main advantages of a CRM system is that it helps in boosting customer retention as it smoothness the process. Good customer retention shows that
the company is doing well.
- Less error in maintaining customer relationship:
As the CRM system helps in complementing the physical customer relationship effort; it ensures that there are less errors or mistakes made
during the CRM process.
Now let’s see some disadvantages:
- Duplication of work:
It is possible that redundancies get introduced into the customer management process due to duplication of effort and the double work associated with sales and
marketing workforce unable to adjust to the automation.
- More complex:
Sometimes CRM system can become more complex, which if not managed properly can lead to confusion and a lack of planning for key activities in the sales and marketing
- Lack of training:
If the implementation of CRM system and the succeeding user training have not been done properly, can result in an illiterate workforce as far as the use of the CRM software
is concerned. In turn, the system will not be used effectively by the workforce.
By looking at the advantages and disadvantages, it is evident that having a CRM system has become
crucial to businesses in their pursuit for outstanding customer relationship management in the categories
of customer satisfaction and customer delight.