What is a CRM?
Customer relationship management (CRM) is the practice of managing customer relationships. The goals of CRM are to retain current customers, increase their spending, and convert prospects into new customers. CRM technology is used to manage information such as a summary of each interaction, indicators of intent to purchase, and purchase history. Analytics are also used to provide real-time insight into cross-sell and upsell opportunities at the individual customer level.
Example
For example, imagine a B2B company that sells office supplies. They use CRM software to store information about their customers, including contact details, purchase history, and communication preferences. When a customer calls to place an order, the company’s sales representative can quickly access the customer’s profile in the CRM system to view past purchases and preferences, allowing them to provide personalized service and make relevant product recommendations. Additionally, the CRM system helps the company track sales activities, follow up on leads, and analyze customer data to identify opportunities for upselling or cross-selling. Overall, the CRM system enables the company to manage customer relationships effectively and drive business growth.