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What is Customer Relationship Management?

Customer Relationship Management or CRM is a corporate level strategy that concentrates on establishing and maintaining long-lasting relationships with its customers. There are several commercial CRM software packages currently on the market, however it is important to understand that the success of the CRM strategy is not based upon installing and integrating a software package, but rather due to changes that happen at every level of the company. These changes must include policies, processes, customer service, employee training, and marketing. In other words, every aspect of the business has to be reshaped in to a customer driven organization.

CRM software is an integrated information system, which is intended to plan, schedule and control both presale and post-sale activities of the company. However, some do not feel that CRM programs are entirely good, with many raising concerns about the system invading customer privacy. A company's use of CRM software however does not automatically imply the collecting of new data. What it does mean is that can make better use of the data the company already has, yet in most instances they are used for collecting new information.

It is conceivable tha CRM software can operate an entire business as the system permits a business to maintain all of its customer records in a centralized location that can be accessed by the entire organization through the use of passwords. The system works by having front office systems collect data from the customer, which is then processed into the data warehouse. The back office system stores all the customer information and also fulfills and supports customer orders, making it possible for a company to follow sales, orders, and cancellations.


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