CRM (Customer Relationship Management) consists of the processes a company uses to track and organize its contacts with its current and prospective customers. CRM software is used to support these processes; information about customers and customer interactions can be entered, stored and accessed by employees in different company departments. Typical CRM goals are to improve services provided to customers, and to use customer contact information for targeted marketing.
CRM Software
There are many pieces of software available that offer customer relationship management features, but in reality, CRM goes beyond software implementation. It's a business strategy that often involves using multiple pieces of software, as well as implementing policies that promote (1) the collection of customer information, and (2) the use of that information by individuals throughout the company in order to maximize customer service and increase sales.
Types of CRM
While the term CRM generally refers to a software-based approach to handling customer relationships, most CRM software vendors stress that a successful CRM effort requires a holistic approach. There are several different approaches to CRM, with different software packages focusing on different aspects. In general, Customer Service, Campaign Management and Sales Force Automation (SFA) form the core of the system (with SFA being the most popular).
