Customer Relationship Management is a way to manage a company's interaction with its current customers and potential customers.
Data Analysis about customers is used to enhance the business relationships with customers. CRM system helps to streamline administrative processes so they can increase sales, profitability and improve customer service.
The concept of CRM was introduced in the early 1970s. The first CRM product Siebel Systems was designed in 1993. The first mobile CRM app, Siebel Sales Handheld, was introduced in 1999 by Siebel. In 2004, SugarCRM developed the first open-source CRM system.
Types of CRM -
1) Operational CRM: The main objective of customer relationship management systems is to incorporate and automate sales, marketing, and customer support.
The main three components of Operational CRM are:
1. Sales Automation.
2. Marketing Automation.
3. Service Automation.
2) Analytical CRM: Analytical CRM systems are used to analyze customer data collected through multiple sources and to present it to the business managers so that they can make more informed decisions.
The techniques used by Analytical CRM systems to analyze the customer data are:
1. Data mining.
3. Pattern recognition.
3) Collaborative CRM: It is a way through which the various departments of a company, such as sales, marketing, and technical support share any info, data, message, they gather from communications with customers. The purpose of Collaborative CRM is to boost the quality of customer service.