What is CRM?
Customer relationship management (CRM) is a broadly used term that covers concepts used by organizations to manage their relationships with customers and stakeholders to reduce costs and increase profitability by solidifying customer loyalty.
CRM brings together information from all sources within and outside an organization to give one, holistic view of each customer in real time.
Customers can benefit from their data being utilised within a CRM system. For instance, an increase in unsolicited telemarketing calls is generally resented by customers while a small number of relevant offers is generally appreciated by customers. CRM software can enhance the collection and analysis of customer behaviour leading to more relevant communications with customer.
There are three aspects of CRM which can each be implemented in isolation from each other:
Operational - automation of customer processes that offers support to a company’s sales or service representative
Collaborative - the program communicates to customers without a company’s sales or service representative (self service)
Analytical - analysis of customer information for multiple purposes.
According to AMR, market for CMR will grow to $19.2 billion through 2011, a 9% compound annual growth rate.
Gartner says CRM software spending grew to $5.81 billion last year, an 11.5% increase, and predicts that software spending will grow between 11% and 12% for the next five years.
SAP is a market leader in CRM followed by Siebel and Oracle.