For the success of any company, effective customer relationship is very important. Customer relationship management is software that can be used by the business to manage their interaction with their customers. The main focus of CRM is to create sustainable relationships with their customers, who add benefits to business. There are a few types of CRM systems having the same goal – creating different opportunities by using the modern technology. CRM helps business managers segment customers with the help of information stored in a central database. It also helps organizations manage and analyze marketing effectiveness through reporting, enabling the company to make efforts across all channels.
Operational CRM: The operational CRM system supports various business processes like sales, marketing and service automation. Call center and website are the examples of an operational CRM system which provides relevant data about the customer needs and wants. It also focuses on improvement and enhancement of business operations which are based on customers. In marketing automation, marketers analyze information, assess and improve communications with customers to maintain long term relationships. Different campaigns are arranged by marketers to judge their customers’ buying behavior. Campaign management is quite a difficult and challenging task. Forecasting of sales is automated in the sales department. Operational CRM synchronizes customer interactions consistently across all communication channels including phone, e-mail and fax etc. It provides support to front office business operations in helping organizations to increase loyalty.
Analytical CRM: Analytical CRM focuses on back office activities. It deals with the different processes and operations that are indirectly linked with customers. Analytic abilities are often linked to sales, marketing and service units of business. All departments individually help managers analyze and understand the customer buying behavior. Data mining, a technique applied by Analytical CRM, helps the organization look for different customer patterns and trends in future. Analytical CRM collects customer’s data from all channels and develops a different set of analytical tools to improve customer relationships. Implementation of the outcome enhances the efficiency of the CRM led organization in generating more revenues. Using Analytical CRM helps the company retain their customers and attract new ones for their organization’s growth. Organizations can also observe customer behavior through many channels of interaction.
Collaborative CRM: Collaborative CRM involves communication and coordination between external and internal parties. It improves customer retention and loyalty. This system also brings together different departments of the organization like sales, marketing and service to share information with each other in better understanding of customer needs and wants. Collaborative CRM covers two main aspects of the organizational activities: Interaction management and Channel management. First of all, it is important to create, analyze and implement customer channels of integration and it depends on customer preferences. They either want to contact via phone or e-mail etc. After implementing the medium of communication it is important to enhance the efficiency of the medium continuously so that customers can easily share their views and ideas.
The main purpose of CRM is to create value and it is based upon the satisfaction of customer needs and wants. Customer relationship management not only ensures the organization that the data of the customers are relevant but it will also help them in attracting more new customers.