WHAT IS CRM ?
The three letters stand for the CRM English words: "Customer - Relationship - Management".
The goal of any CRM strategy is to create active client relationships and attract profitable customers for the company . This will help the customer not unilaterally, but mutually. Many businesses are aware that high customer loyalty and repeat business result in higher profitability. This situation can be relatively easily justified, because repeat business assure that customer company and products may be less cost-sensitive and moreconvincing. Often, customer relationships take years to profitablyhet through repeat business. Only then will the benefits of satisfied customers, such as lower price sensitivity, sales growth through increased confidence, further recommendations and associated savings marketing advantage, emerge.
With globalisation and market saturation, companies are hardly able to differentiate themselves solely with only the products from the competition. Technical perfection or low prices are no longer a serious competitive advantage anymore. High complexity of the products but to the outside hardly assessable product features, make it difficult to differentiate the customer. The product as the main selling point has long since ceased. Consequently, companies must concentrate on reviewing the direct positive influence. For long-term customer relationships, it is ultimately on trust and overall satisfaction. Especially in times of ever-shorter product cycles and long periods of warranty (two years required by law), it is important to differentiate with customized funds of the competition.
It must be special attention paid to the selection of funds, because not all expensive services are perceived by customers as a specific target (example: 24-hour hotline, Instant service). By contribution of all company services to the needs, or desires, the target customers can get enormous cost advantages with high satisfaction. Modern IT structures and databases help companies to capture and analyze customer data and then optimize the performance of specific target groups.