Customer Relationship Management (CRM)
Customer relationship management (CRM) is a broadly applied model where the company's undergoes an interaction with the customers, clients and sales prospects. CRM can also be referred as the way of developing a mutual understanding and maintaining a mutual beneficial long term relationship along with the strategically significant customers.
This forms a bond between the company and its customers. It is a kind of business philosophy where even few organizations customize their products and services and promoting this by initiating an open line of communication added with the feedback. At few organizations this act as the software based approach to handle the relation with the customers and this stores the information of the current and prospective customers.
This activity mutually supports both the buying and the selling firm. The basic motive of the selling organization is to gain the competitive advantage by fulfilling the customer's need and building a long term value driven relationship.
Customer relationship management is completely different from the traditional marketing as its goal is to establish a profitable long term one to one relationship with the customers by properly understanding their needs, preferences and expectations. On the other hand traditional marketing is one that expands the customer base by increasing the market share by carrying out mass marketing as their focus stays on product oriented view. Within traditional marketing the product is standardized according to the needs of the customer while in CRM the business follows the customer oriented view and develops the customer supplier relationship with the relational approach.
Customer relationship management is executed with the help of few determinants as the trust and value. Trust is simply the willingness with which the customer rely on the ability, integrity and the power of motivation that one company can serve the needs of another company and fulfilling all the implicitly and explicitly.
Value is another determinant is the capability of selling organization to fulfill the needs and wants of the customers in the better manner comparison to the competitors either offering them at lower price. Apart trust and value, understanding the customer’s needs and wants, meeting their commitments, providing the superior after sales support and also building a confidence that the customers is always told truth and show an inclination of interest to the customers towards building a long term relationship with them.