Benefits of Customer Relationship Management

Customer relationship management

Benefits of customer relationship management
Customer relationship management refers to the art of establishing and maintaining relationships
with customers. Various organizations have been putting increasing efforts to maintain customer
relationships owing to various benefits associated with it. Firstly, effective CRM helps in
identifying and analyzing customer requirements better (Wang & Feng, 2012). A better
understanding of customer requirements helps businesses in identifying a need gap and hence
fulfilling the same in order to keep customers satisfied. This helps in improving customer
satisfaction level leading to increased customer loyalty. When an organization puts efforts in
understanding customer requirements and fulfilling the same in an effective manner, the
customers tend to be satisfied and loyal towards the brand. This in turn leads to building a loyal
customer base and enhanced revenues from these customers.
Effective CRM also improves overall business processes (Goddard et. al., 2012). For example,
while contacting organizational clients or potential customers, it is beneficial that the company’s
CRM software contains all the details about the customers, their requirements as well as logs of
previous conversations with them. This is specifically beneficial for new employees who do not
have prior knowledge about the client.
For a sales personnel, there are various benefits of managing customer relationships. Keeping
customer conversation logs also largely assists sales team in effectively following up with the
client. This improves sales process and reduces overall time consumed by the sales team (Li &
Mao, 2012). After sales costs are also reduced with the help of competent CRM strategies
adopted by the firm. Sales process is also improved through CRM as effective client
relationships also help sales personnel in gaining referrals for further sales.
Most importantly, building and managing proactive customer relationships leads to improved
goodwill of the brand (Keller et. al., 2011). Brand positioning also improves if customer
relationships are maintained well. This resourceful managing of customer relationships also
helps businesses in gaining a competitive advantage over other players in the industry.
Customer relationship management allows firms to customize their products and services as per
the needs of the clients. This will further leads to increased customer satisfaction. Brands can