What is CRM？
With a global surplus of products and product homogeneity, the dominant factor in the development of enterprises shifts from product value to customer demand. And the customers become the company’s core resources. Customer Relationship refers to information imputation which occurs and develops around the customer life cycle. The core of the customer relationship management is the customer value management. And customer value will be divided into de facto value, potential value and model value. Through “one to one” marketing principles, different value of personalized customer needs will be meted with. It will enhance customer loyalty and retention to achieve sustained contribution to customer value, resulting in enhancing corporate profitability in an overall.
CRM is namely as customer relationship management. This concept was originally proposed by the Gartner Group, and recently, is in the popular in the enterprise e-commerce. The main idea of CRM is depth analysis of customer detailed information to enhance customer satisfaction, thereby enhancing the competitiveness of enterprises. It mainly includes the following main aspects (referred to as 7P):
Customer Profile Analysis (Profiling) including the client’s level of risk, hobbies, habits, etc.;
Customer Loyalty Analysis (Persistency) means the customer a product or a commercial organization loyal extent, persistence, movement, etc.;
Customer profitability analysis (Profitability) refer to different customers consume the products the edge of the profit, total profit, net profit, etc.;
Customer Performance Analysis (Performance) refer to different customers according to consumer product categories, channels, sales outlets and other indicators of the sales division;
Customer future analysis (Prospecting), including customer number, category, etc. The future development trend of the means to win customers, etc.;
Customer product analysis (Product), including product design, relevance, supply chain, etc.;
Customer Promotion Analysis (Promotion), including advertising, publicity, promotions management.
On different occasions, CRM may be a jargon of management, may be a software system. We usually refer CRM to the computers automation software system of above analysis process. It involves sales, marketing, customer service, and support for applications software. Its goal is to reduce the sales cycle and marketing costs, increase revenue, expand their business needed to find new markets and channels and enhance customer value, satisfaction, profitability and loyalty.
After the introduction of e-commerce in traditional enterprises, enterprises focus has transferred from improving the internal efficiency to respect external customers. The CRM philosophy is based on respect for customers, requiring a complete understanding of the whole customer life cycle, providing a unified platform for communicating with customers, improving the efficiency of contacts between staff and customer and improving customer feedback rate. A successful customer relationship management system should at least include the following functions: by phone, fax, Internet, mobile communication tools, e-mail and many other channels to communicate with customers; to make employees a comprehensive understanding of customer relationships, doing transactions according to customer demand ,recording the attained customer information ;to make customer information sharing right inside the enterprises ;to programme and evaluate of marketing planning; to track on a variety of sales activities ; through a large number of dynamic accumulation of information to comprehensive analyze marketing and sales.
