Wikipedia describes CRM as “an approach to managing a company’s interactions with current and potential customers…..to ultimately drive sales growth” (see full article here: https://en.wikipedia.org/wiki/Customer_relationship_management).
And to put it more simply, it’s using customer information and interactions to improve their experiences and drive sales! It’s basic premise is to learn as much as possible about customers so that you can provide them with exactly what they want at the right time. And with predictive analytics, some will argue that you can serve their interests before they’re even aware of the need. Of course, all of the information gathered to drive those experiences can also be utilized to gain new customers.
CRM is part art and science that’s theoretically utilized daily by brick and mortar sales associates as they learn individual customer behavior and combine it with POS data to bring about the ultimate shopping experience. And at a corporate level, the goal is to apply the same techniques across all customer touch-points (e.g. POS, Web, Social, Email, Call Center, etc.) to fully understand customers’ channels, preferences, transactions and interactions then provide a wow experience upon contact. If one can master this process, it should bring about heightened customer loyalty and improved value.
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