CRM is short for Customer Relationship Management, which is generally translated as "Customer Relationship Management". CRM originated in the United States, and was first proposed by Gartner Group. Since the 1990s, with the tide of Internet and e-commerce, it has developed rapidly. Different scholars or business organizations have different views on the concept of CRM.
The originator of this concept believes that CRM is a business strategy, which effectively organizes enterprise resources according to the classification of customers, cultivates customer-centric business behavior and implements customer-centric business processes, and uses this as a means to improve enterprise profitability, profits and customer satisfaction.
IBM believes that CRM can establish a long-term, stable and close relationship of mutual trust with customers by improving product performance, enhancing customer service, improving customer delivery value and customer satisfaction, so as to attract new customers, maintain old customers, and improve efficiency and competitive advantage for enterprises. [1]
SAP: The core of CRM system is the management of customer data. The customer database is an important data center of the enterprise. It records various interactions between the enterprise and customers in the marketing and sales process, as well as the status of various related activities, provides various data models, and provides support for later analysis and decision-making
Customer relationship management value Based on the above classical CRM concepts, CRM can be defined as: CRM is modern information technology It is a combination of business ideas. It uses information technology as a means to form an automated solution through the important combination and design of "customer centric" business processes, so as to improve customer loyalty and ultimately achieve the improvement of business operation efficiency and profit growth. Regardless of the definition of CRM, "customer-centric" will be the core of CRM. CRM can shorten the sales cycle, reduce sales costs, increase revenue, expand the market, and comprehensively improve the profitability and competitiveness of enterprises by meeting customers' personalized needs and improving customer loyalty. The original intention of any enterprise to implement customer relationship management is to create more value for customers, that is, to achieve "win-win" between customers and enterprises.
CRM is a company wide strategy, which maximizes profit and Customer satisfaction 。 Key CRM technology investment can provide better customer understanding, increase customer contact channels, customer interaction and integration of customer channels and enterprise background. CRM's application scope includes Technology enabled Selling (TES), Customer Service and Support (CSS) and Technology enabled Marketing (TEM). [2] With the rapid development of informatization, Internet adaptation has also improved year on year. Enterprises can use the Internet to communicate and manage customers, which is different from the traditional enterprise communication mode and has its unique characteristics. [3] The details are as follows:
The use of the Internet for customer relationship management has its characteristics of virtualization. This feature is often due to its unique information processing function of the Internet, which gathers people who are far away on the Internet to conduct after-sales service and product use survey, so that they can have a further understanding of products and enterprises, and enterprises can even let customers participate in the use and design of products. Therefore, the virtualization of customer relationship management is characterized by its ability to use the Internet for long-distance communication and contact. Sales enterprises can also use this channel to establish direct contact with customers, get rid of the difficulties of intermediaries, and save capital investment.
Reduced transaction costs
Because the customer management system can adopt information-based processing technology and methods to determine business matters, customer relationship management can easily become digital. Moreover, the digital processing requirements also meet their own needs. At the same time, the use cost of the Internet is also lower than the application cost of the traditional management system. Therefore, no matter the size of the enterprise, you can find the corresponding management methods to reduce the cost input, better maintain customer relations, help enterprises create benefits and value, promote enterprise development, and then promote social progress. [2]
Because Internet communication is global in nature, and can transfer and exchange information throughout the world, it is easy to manage customers on the basis of the Internet of information technology, so that they can no longer be confined by the region. In other words, the use of the Internet to manage customer relationships has its global characteristics.
Because enterprises need a large amount of information for customer management, it is the most convenient and fast management mode to transfer and manage information on the Internet, which plays a unique role in customer relationship management, improving enterprise efficiency, and accelerating information progress.
