Customer Relationship Management: Core Principles

Relatively recently, manual labor was distributed in the economic sector. Over time, it was replaced by mass production, in which the share of human participation significantly decreased. Along with this, the deficit was eliminated, many products became available. With the development of society, the needs of its members change. Today, in particular, buyers are trying to buy things, not like others. At the same time, many are ready to overpay for a unique product. Modern business can not be imagined without customers. In fact, they act as the second key component of the success of the enterprise after the uniqueness of the proposal. In this regard, a special importance is the system of customer relationship management. Let's consider it in more detail.

Relevance of the issue

To establish mutually beneficial relations with consumers, the enterprise needs to develop two main directions. First of all, you should organize your production so that it can be reoriented depending on the feedback of the buyer of the product. Secondly, it is necessary to develop a system for exchanging information with the consumer and partners. In the period of competition, the quality of products is approximately the same for all manufacturers. In such conditions the rate of profit of the enterprise decreases. The only way to stay on the market is to develop an individual proposal for each consumer.

Modern solution

At present, the system of customer relationship management is widely spread. The consumer is perceived in a broad sense. They are not only directly the end user of the product. The abbreviation for the customer relationship management system in English sounds like Customer Relationship Management. This model is aimed at building sustainable business relations with the consumer. It acts as a business strategy for enterprises. The core in it is an approach focused on satisfying the individual needs of the consumer.

Features of occurrence

The concept of customer relationship management (CRM) system was introduced by marketing specialists. This model began to act as a technology focused on the consumer. Work with customer relationship management systems is aimed at increasing the profitability of the buyer, his profitability, increasing the period of his loyalty and so on. It is based on advanced information technologies, through which the company collects data about its customers. The company extracts the necessary information and applies it in the interests of business by building mutually beneficial cooperation.

Specificity

At the technology level, the customer relationship management system is a set of programs that perform such crucial operations as:

1. Sale of services and goods.
2. Service, warranty and service including.
3. Marketing.

In addition, the customer relationship management system allows you to investigate consumer behavior. The management and managers of the enterprise apply the findings to the planning of further activities.

Analysis of customer relationship management systems

How does this model work? Generally speaking, the customer relationship management system is a special program that tracks the history of the company's interaction with consumers. The input data is all information about the buyer and his actions (gender, age, purpose of acquisition, method of payment, income) and the product purchased. All this information is obtained from various sources. These can be e-mails, questionnaires, personal conversations. Outputs are data on how to adjust the company's activities to improve interaction with the entity. This information can be general, and it must be taken into account when developing or changing the concept, or it can be directed to a specific employee.

Model Tasks

Currently, there is a significant improvement in models, but the evolution of customer relationship management systems has not yet ended. Meanwhile, we can distinguish several tasks that are solved by any program:

1. Collection of information. Information can be added automatically or manually indicated by the employee.
2. Data storage and processing. The information received is systematized and distributed to certain groups.
3. Transfer of information to employees. The processed information must have an understandable view. It is necessary for employees to analyze and develop appropriate concepts. For convenience, information is provided in graphs, tables. In some cases, the program itself gives some recommendations.

Practical use

The integrated system contributes to the coordination of the activities of different divisions of the enterprise. The program provides all employees with a common platform for interaction with consumers. The main purpose of the system in this case is to ensure the coordinated work of the service departments, marketing, sales. Often they act apart from each other. At the same time, their ideas about clients, as a rule, do not coincide. If we consider the importance of systems from the point of view of enterprise management, the effect of their implementation is manifested in the transfer of the decision-making process to lower levels through automation. Accordingly, this helps to increase the speed of response to requests, speed up the circulation of funds and reduce costs. The application of systems in practice increases the competitiveness of the company, increases profit.

Main Users

CRM systems are especially relevant for small companies operating in highly competitive markets. In such situations, priority is given not to price superiority, but to a high level of management. Competitive struggle is won by those companies that fully master CRM-systems. The program is also in demand for economic entities that have a network of small customers. Investigating the preferences of customers, you can predict the demand for this or that product in a particular price segment. Accordingly, it is possible to plan the efficiency of the output of the product on the market. The management systems of service companies are in demand. Managers of such enterprises can monitor the wear of the equipment available to the client, and the need for prevention and repair, frequent breakdowns and defects. Based on customer preferences, service companies offer updated equipment.

Conclusion

Using a customer relationship management system, an enterprise can gain a significant competitive advantage compared to other companies in its market segment. The program allows you to work out a specific offer for a specific customer. In this automated mode, data on its needs are summarized. Management systems can be used by any enterprise, regardless of the scope of its activities.