to expanding this acronym we will use its most popular explanation:
Customer Relationship Management
however nowadays more often it means Contact Relationship Management
Increasing number of any developing company customers brings steep growth in data needed to customer service. It may be pre- or post-sales service and needs teams expanded accordingly to handle all the contacts and opportunities.
The turning point comes when the complexity of communication and knowledge gathered exceeds current company resources (HR & IT in general).
The number of methodologies that suppose to help also grew but managing the relations with customers become the necessity and CRM estabilished its crucial position by:
As a natural process the methodology moved to technology - that means to digital environment. IT solutions since the begining became the key to enhanced competitivness, costs reduction and profit gains. Sometimes it is even called eCRM - electronicCRM. Digital CRMs had evolved. Specialized software helping specific departaments by Sales Force Automation (SFA) or Customer Service Support (CSS) were too narrow. Demand grows toward more complex, comprehensive and customer oriented system to manage relations with customers thus comes CRM. In years following whole class of that kind of solutions were made. It is based on 4 basic types:
CRM systems were created as a natural reaction for companies more and more oriented towards the customers. Small companies, without big contact database can thrive without huge IT investments and such specific solutions. With the growing organization, gaining its complexity, the demand for digital assistance rises. The earlier the solution is implemented, the faster the benefits can become visible:
This is not the end of benefits when considered possible extensions to the system, not only from CRM functions.
Everybody who, during professional activities takes creates interactions and relations with others. The number of those relations, their intensity demand management. It mostly depends on company size and number of customers. By managing relations we understand designing, monitoring, analysis and optimization of them. In case the management is impossible due to the number of processes at hand without any software then it's time to look for CRM.