Customer Relationship Management ( abbreviated : CRM ) is a term applied to processes implemented by a company to handle its contacts with its customers.
In the context of web sites, CRM is an information system containing sets of functions that are designed, and sometimes customized, to track, analyze and control communication from and to site visitors and customers, and to collect information about them.
Typical examples of online customer relation management are the tracking and control of hits, IP address and hit analysis, the automation of sign-up and sign-in procedures, visitor e-mail tracking, and subsequent e-mailing strategies and campaigns. All tracking procedures are usually accompanied by database support and analysis.
Whether Shopping Carts and payment processing systems used in e-commerce fall into the category of Customer Relationship Management, is a matter of opinion : strictly speaking, they do qualify as CRM based by the above definitions ; on the other hand, shopping and payment processing are a more mechanical, post-communicative process.
Although CRM and SEO (Search Engine Optimization) are two totally unrelated terms, certain aspects of SEO can be applied to those parts of CRM processes that deal with analyzing web site hits and their causes.
Often software is used to support CRM procedures, storing information on current and prospective customers. Information in the system can be accessed and entered by employees in different departments, such as sales, marketing, or customer service. Details on any customer contacts can also be stored in the system. This is to improve services provided directly to customers and to use the information in the system for targeted marketing and sales purposes.
While the term " Customer Relationship Management " is generally used to refer to a software-based approach to handling customer relationships and information management, most CRM experts stress that a successful Customer Relationship Management strategy requires more than the analysis of customer data. CRM initiatives often fail because implementation was limited to software installation without providing the appropriate motivations for employees to learn, provide input, and take full advantage of the information systems. |