CRM and SRM: Importance of CRM and SRM, Types of CRM Software, companies. Definition of CRM and SRM, Five companies who are executing CRM management in business, The Importance and Objectives of CRM: Customer gratification, Improve Effectiveness, Marketing Campaign, Attract Potential Customers, Increase Sales Growth. Types of CRM Software
CRM and SRM:
Definition of CRM:
CRM is the abbreviation form of customer relationship management. CRM refers to the practices, strategies, and technologies applied by the industry for easily managing and communicating with their existing and potential consumers. Customer relationship management focuses on improving customer services, building rapports, and increasing sales growth. CRM collects and analyzes customer data in many ways. The data of the customers can be collected through many channels such as social media platforms, the website of the company, live chat, direct marketing, telephone, and so on. Many renowned companies all over the world are using CRM software to maintain their customers as well as regulating business properly.
Figure 1: CRM (customer relationship management)
The example of the five companies who are executing CRM management in business:
- Apple CRM
- Coca-Cola CRM
- Amazon CRM
- Activision CRM
- Tesco CRM
The Importance and Objectives of CRM:
Although the main objective of customer relationship management (CRM) is maintaining an effective relationship with customers to improve the company’s sales growth, I have outlined five goals that every industry wants to achieve by CRM tool.
1. Customer gratification
No business can exist without customers; therefore, customer satisfaction is an important factor to increase sales growth. The company always try to satisfy their customers as if they return to buy more products or services. Paying attention to customer satisfaction is part of corporate branding, so every industry uses the CRM strategy for both company and customer mutual benefit. For example, a contact management tool helps the company to implement the CRM strategy properly. Contact management software enables the company to track the conversation between customers and company employees. Therefore, customers feel that they are a very important person in the industry as the company keeps a record of the conversations. Finally, customers will be amused by the communication service offered by the company, and they will be willing to buy more products and services.
2. Improve Effectiveness
The CRM tool assists the company to regulate hassle-free communication with effectiveness. It gives a great opportunity for the industry to respond quickly when customers query to know something. It yields an effective communication between the company and clients and produces customer satisfaction. For the purpose of the marketing campaign, CRM can keep a record to lead the industry taking further decisions in the future.
3. Marketing Campaign
CRM software plays an important role in the marketing campaign purpose. It makes easy the way of conducting sales campaigns to target audiences. This software can design a way of targeting potential customers by using a special tool. The target audience segmentation process can be driven by the CRM software accurately that yields an effective campaign.
4. Attract Potential Customers
The CRM software allows the company to track the detailed information of the existing customers. This software is also capable to identify loyal clients of the company so that industries can easily reward loyal customers. So, it will not only keep satisfied the current customers but persuade new customers to buy products or services. CRM software can identify the gap in the industry that needs to be fulfilled for customer satisfaction. It can explore the reason why the customer is not interested to buy the products or services so that company can fill the gap to persuade customers to buy them.
5. Increase the Sales Growth
Based on the discussion, it is clear that CRM software helps the company to sell more products and services to the customers by satisfying them. The company will be benefited automatically when increasing the sales growth.
Types of CRM Software:
CRM software has become one of the most popular tools in the global business market to collect more clients than competitors. The company increases the use of CRM software currently to cope with the digital era. He also said that the industry uses many types of CRM tools based on business policy.
Five types of CRM software are as follows:
1. Operational CRM: This type of software helps the customer sales and marketing department of the industry to give better service to existing and potential customers. This tool also can be used in marketing automation, service automation, and sales automation.
Example of operational CRM: Mailchimp or Outreach.
2. Analytical CRM: Analytical CRM assist the company to gather data about customers including point of contact, interests, channels, and customer preference. This software tries to understand customers when operational CRM attributes them to sales funnel. Thus, the industry can make the best business decision after collecting customers’ data through CRM tools.
Examples of analytical CRM: Zoho Analytics or Wave: Salesforce Analytics Cloud
3. Collaborative CRM: This software supports different types of the department in an industry to share customers information. Collective CRM focuses more on providing customer services while operational CRM works for marketing and selling products.
Examples of collaborative CRM: Pipedrive or Copper
4. Campaign management CRM: This tool works for both analytical or operational purposes in the industry. Campaign management CRM collects customer’s information and apply into marketing and sales campaigns. The prime objective of this tool is to assist to run a campaign properly via email integration software.
Examples of campaign management CRM: Active Campaign (email marketing campaigns)
5. Strategic CRM: It focuses on customers to develop the relationship between industry and client. This tool is very useful to build rapport rather than short term relationships for example instant sale or short campaign.
CRM and SRM:
Definition of SRM:
Supplier relationship management (SRM) is an effective way of managing and maintaining a better relationship with suppliers in organizations. SRM helps to reduce the risk of miscommunication and misunderstanding between industry and supplier. In order to provide good service to suppliers, SRM works for increasing the value of the intercommunication. In order to achieve a competitive advantage, most of the reputed companies are using the SRM tool to create and maintain strong and loyal relationships with suppliers.
The example of the five companies that using SRM in business:
- France’s Renault
- Japan’s Nissan
The Importance of Customer
Customer engagement – customers’ investment in or commitment to a brand and product offerings
- Customer retention and loyalty.
- Customers’ willingness to make an effort to do business with the organization.
- Customers’ willingness to actively advocate for and recommend the brand and product offerings.
The Importance of Suppliers:
- Quality of the supply chain affects the quality that customers receive
- “Superior quality, consistent service, and competitive pricing are just the price of entry to get into the game.”
- Suppliers must continually improve and align their operations with customer needs.
Principles for Customer-Supplier Relationships
- Recognition of the strategic importance of customers and suppliers
- Development of win-win relationships between customers and suppliers
- Establishing relationships based on trust