Understanding The Customer Relationship Management And How It Impacts The Overall Organization 's Objective

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Introduction The purpose of this document is to understand the customer relationship management and how it impacts the overall organization’s objective. Currently the organization is using SAP R/3 which provides transactional capabilities and now the organization wants to move ahead and implement SAP CRM module which would help them better manage their customers. Also this document talks about SAP CRM module on cloud vis-à-vis in-house SAP CRM and which one makes more economical sense to the organization Main Discussion What is CRM (Samma, 2011) stated that Customer relationship management is a combination of policies, processes and strategies applied by any organization to unify its customer interactions and provide a mean to track…show more content…
Contact Optimization  3. Customer Segmentation  4. Customer Satisfaction Measurement / Increase  5. Sales Coverage Optimization Collaborative CRM Collaborative CRM is all about integrating customers using a coordinated mix of interaction channel i.e. all the contact points which influence the customers. All in all Customer relationship management is an integrated customer oriented approach where information system provides key information to support operational, analytical and collaborative CRM processes thus contributing to overall profitability of the organization. Benefits of CRM Increase customer retention Knowing your customers and their needs always help in satisfying rather delight those customers. The satisfied customers are more likely to be retained than the unsatisfied or the less satisfied customers. Identify most profitable customer and treat them accordingly As CRM helps in improving the knowledge about customers in terms of their behavior, demographics and purchase patterns thus it helps in segregating highly profitable customers from less profitable customers. Reduce Marketing Cost Since CRM helps you identify the customers as well as the best possible way to target those customers thus it saves a lot of money as the organization can go for targeted marketing instead of general marketing through all the traditional contact points. Obtain qualified lead Knowledge about the customers also helps in identifying the qualified lead for
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