Customer Relationship Management (CRM) is a strategy or system that businesses use to manage their interactions with current and potential customers. It involves using data analysis to study large amounts of information about customers’ interactions with the company to improve relationships, retain customers, and drive sales growth.
Types of CRM:
- Operational CRM:
- Focuses on automating and improving customer-facing business processes such as sales, marketing, and customer service.
- Key feature: Manages direct interactions with customers, like tracking sales calls, handling customer inquiries, and marketing campaigns.
- Example: Automating customer service through chatbots.
- Analytical CRM:
- Focuses on analyzing customer data to gain insights into customer behavior and preferences.
- Key feature: Uses data mining and business intelligence tools to understand customer trends and optimize marketing strategies.
- Example: Identifying customer buying patterns to offer personalized recommendations.
- Collaborative CRM:
- Focuses on facilitating communication and collaboration between a business and its customers through various channels, such as email, phone, or social media.
- Key feature: Ensures smooth sharing of information across different departments like sales, marketing, and support.
- Example: Sharing customer feedback between the support and product development teams to improve product quality.
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