CUSTOMER RELATIONSHIP MANAGEMENT

The stated purpose of customer relationship management (CRM) is to enable a company to better serve its customers through the introduction of reliable service automated processes, personal information gathering and processing, and self-service. It attempts to integrate and automate the various customer serving processes within a company.

It typically involves three general areas of business. They are a customer service system, a marketing information system and a sales force management system. The marketing information part provides information about the business environment, including competitors, industry trends, and macroenviromental variables. The sales force management part automates some of the company's sales and sales force management functions. It keeps track of customer preferences, buying habits, and demographics, and also sales staff performance. The customer service part automates some service requests, complaints, product returns, and information requests.

Integrated CRM software is often also known as "front office solutions." This is because they deal directly with the customer.

Many call centers use CRM software to store all of their customer's details on. When a customer calls, the system can be used to retrieve and store information relevant to the customer. By serving the customer quickly and efficiently, and also keeping all information on a customer in one place, a company aims to make cost savings, and also encourage new customers.

CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. For example, you might be able to check your bank balance via your WAP phone without ever having to talk to a person, saving money for the company, and saving you time.

Improving customer service

CRMs are claimed to improve customer service. Proponents say they can improve customer service by facilitating communication in several ways:

Provide product information, product use information, and technical assistance on web sites that are accessible 24 / 7
Help to identify potential problems quickly, before they occur
Provide a user-friendly mechanism for registering customer complaints (complaints that are not registered with the company cannot be resolved, and are a major source of customer dissatisfaction)
Provide a fast mechanism for handing problems and complaints (complaints that are resolved quickly can increase customer satisfaction)
Provide a fast mechanism for correcting service deficiencies (correct the problem before other customers experience the same dissatisfaction)
Identify how each individual customer defines quality, and then design a service strategy for each customer based on these individual requirements and expectations
use internet cookies to track customer interests and personalize product offerings accordingly
use the internet to engage in collaborative customization or real-time customization
Provide a fast mechanism for managing and scheduling followup sales calls to assess post-purchase cognitive dissonance, repurchase probabilities, repurchase times, and repurchase frequencies
Provide a fast mechanism for managing and scheduling maintenance, repair, and on-going support (improve efficiency and effectiveness)
Provide a mechanism to track all points of contact between a customer and the company, and do it in an integrated way so that all sources and types of contact are included, and all users of the system see the same view of the customer (reduces confusion)
The CRM can be integrated into other cross-functional systems and thereby provide accounting and production information to customers when they want it

Improving customer relationships

CRMs are also claimed to be able to improve customer relationships . Proponents say this can be done by:

CRM technology can track customer interests, needs, and buying habits as they progress through their life cycles, and tailor the marketing effort accordingly. This way customers get exactly what they want as they change.
The technology can track customer product use as the product progresses through its life cycle, and tailor the service strategy accordingly. This way customers get what they need as the product ages.
In industrial markets, the technology can be used to micro-segment the buying centre and help co-ordinate the conflicting and changing purchase criteria of its members
When any of the technology driven improvements in customer service (mentioned above) contribute to long-term customer satisfaction, they can ensure repeat purchases, improve customer relationships, increase customer loyalty, decrease customer turnover, decrease marketing costs (associated with customer acquisition and customer “training”), increase sales revenue, and thereby increase profit margins

Technical functionality

A CRM solution is characterised by the following functionality:

scalability - the ability to be used on a large scale, and to be reliably expanded to what ever scale is necessary.
multiple communication channels - the ability to interface with users via many different devices (phone, WAP, internet, etc)
workflow - the ability to automatically route work through the system to different people based on a set of rules.
database - the centralised storage (in a data warehouse) of all information relevant to customer interaction
customer privacy considerations, e.g. data encryption and the destruction of records to ensure that they are not stolen or abused.

Privacy and ethical concerns

CRMs are not however considered universally good - some feel it invades customer privacy and enable coercive sales techniques due to the information companies now have on customers - see persuasion technology. However, CRM does not necessarily imply gathering new data, it can be used merely to make "better use" of data the corporation already has. But in most cases they are used to collect new data.

Some argue that the most basic privacy concern is the centralised database itself, and that CRMs built this way are inherently privacy-invasive. See the commercial version of the debate over the carceral state, e.g. Total Information Awareness program of the United States federal government.

CRM suppliers

Siebel Systems has been among the most active and outspoken in its appeal to the U. S. federal government's homeland security plans. Shortly after Sept. 11, the company created a homeland security business unit, which now employs 100 people, and announced it would build a set of applications geared specifically for homeland security.

Many other companies supply CRM solutions, including Oracle Corporation, IBM, SAP, FrontRange Solutions, BroadVision and Epicor. These pay varying degrees of attention to usability, integration, and privacy concerns - it being widely acknowledged as impossible to fulfil all three constraints - thus it seemed unlikely that any one vendor can dominate in the near term. However, those dealing in Total Information Awareness and fulfilling government contracts to gather data on citizens without their permission or knowledge, clearly have the advantage of prepaid integration contracts and no privacy limits whatsoever, effectively making CRM a key part of the U.S. military-industrial complex.

If a dominant provider of such "solutions" could gain a decisive advantage in this privacy-sensitive marketplace, this would raise significant antitrust concerns.

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CRM news websites

CRM Daily daily news and discussions in the field of CRM and call centres.

Support Insight has a CRM subsite with daily news.

Destination CRM a website specialising in CRM news

Commercial Usage: CUSTOMER RELATIONSHIP MANAGEMENT

Domain	Title
Books	Building the Customer-Centric Enterprise: Data Warehousing Techniques for Supporting Customer Relationship Management (reference) The Customer Relationship Management Planning Guide V2.0: CRM Steps I & II, Customer-centric Planning & Redesigning Roles (reference) Mastering Data Mining: The Art and Science of Customer Relationship Management (reference) Harvard Business Review on Customer Relationship Management (reference) The CRM Handbook: A Business Guide to Customer Relationship Management (reference) (more book examples)

Periodicals	Customer Relationship Management Magazine (reference) International Journal Of Customer Relationship Management (reference) Iomas Report On Customer Relationship Management (reference) (more periodical examples)
Source: compiled by the editor from various references; see credits.

Non-Fiction Usage: CUSTOMER RELATIONSHIP MANAGEMENT

Subject	Topic	Quote
Business		Many companies have already implemented individual management systems, data collection systems and customer relationship management systems. (references)
		Other growth areas are Application Service Providers (ASPs), Customer Relationship Management (CRM) and vertical industry portals and marketplaces. (references)
		In another study, 83% of the 2000 German firms surveyed plan to engage in some kind of Internet business by 2001. Investment in e-commerce related software and network solutions is expected to increase next year. In particular, supply chain management, customer relationship management, and e-business solutions are the major focus. (references)
Economic History	South Africa	Sales will also grow for firms supplying software such as billing systems, customer relationship management and network monitoring systems. (references)
	Hong Kong	On the enterprise side, Customer Relationship Management (CRM) software and Enterprise Resources Planning (ERP) and Supply Chain Management (SCM) are still enjoying healthy growth. (references)
	Germany	Customer Relationship Management and Supply Chain Management applications clearly gained momentum and the use of packaged software has been widely incorporated within German organizations. (references)
Source: compiled by the editor from ICON Group International, Inc.; see credits.

Frequency of Internet Keywords: CUSTOMER RELATIONSHIP MANAGEMENT

Alternative Orthography: CUSTOMER RELATIONSHIP MANAGEMENT

Hexadecimal (or equivalents, 770AD-1900s) (references)

43 55 53 54 4F 4D 45 52 52 45 4C 41 54 49 4F 4E 53 48 49 50 4D 41 4E 41 47 45 4D 45 4E 54

Leonardo da Vinci (1452-1519; backwards) (references)

Binary Code (1918-1938, probably earlier) (references)

01000011 01010101 01010011 01010100 01001111 01001101 01000101 01010010 00100000 01010010 01000101 01001100 01000001 01010100 01001001 01001111 01001110 01010011 01001000 01001001 01010000 00100000 01001101 01000001 01001110 01000001 01000111 01000101 01001101 01000101 01001110 01010100

HTML Code (1990) (references)

&#67 &#85 &#83 &#84 &#79 &#77 &#69 &#82 &#32 &#82 &#69 &#76 &#65 &#84 &#73 &#79 &#78 &#83 &#72 &#73 &#80 &#32 &#77 &#65 &#78 &#65 &#71 &#69 &#77 &#69 &#78 &#84

ISO 10646 (1991-1993) (references)

0043 0055 0053 0054 004F 004D 0045 0052 0052 0045 004C 0041 0054 0049 004F 004E 0053 0048 0049 0050 004D 0041 004E 0041 0047 0045 004D 0045 004E 0054

Encryption (beginner's substitution cypher): (references)

Domain	Definition
Computing	Customer Relationship Management (CRM, CIS, Customer Information Systems, Customer Interaction Software, TERM, Technology Enabled Relationship Manager) Enterprise-wide software applications that allow companies to manage every aspect of their relationship with a customer. The aim of these systems is to assist in building lasting customer relationships - to turn customer satisfaction into customer loyalty. Customer information acquired from sales, marketing, customer service, and support is captured and stored in a centralised database. The system may provide data-mining facilities that support an opportunity management system. It may also be integrated with other systems such as accounting and manufacturing for a truly enterprise-wide system with thousands of users. (1999-08-20). Source: The Free On-line Dictionary of Computing.
Source: compiled by the editor from various references; see credits.

Expression	Frequency per Day	Expression	Frequency per Day
customer relationship management	1,083	customer relationship management ecrm	10
customer relationship management software	151	customer relationship management uk	10
crm customer relationship management	113	customer relationship management solution uk	9
customer relationship management crm software	45	customer relationship management tool	7
customer relationship management solution	43	customer relationship management product	6
customer relationship management article	23	customer relationship management process definition	5
customer relationship management system	22	customer relationship management consulting	5
ecommerce customer relationship management	18	customer relationship management strategy	4
customer relationship management application	14	customer relationship management training	4
microsoft customer relationship management	14	customer relationship management vendor	4
web based customer relationship management	13	customer relationship management services	3
electronic customer relationship management	12	small business customer relationship management	3
customer relationship management definition	11	oracle small business customer relationship management	3
automated customer relationship management	11	customer relationship management software for car dealer	2
Source: compiled by the editor from various references; see credits.

CUSTOMER RELATIONSHIP MANAGEMENT

Specialty Definition: CUSTOMER RELATIONSHIP MANAGEMENT

Specialty Definition: Customer relationship management