Customer relationship management helps businesses understand and manage their interactions with customers. This lesson explains what CRM is, the main types of CRM software, and how businesses use CRM to encourage loyalty and repeat purchases.
Customer relationship management (CRM) is the means through which companies track, manage, and analyze customer interactions. CRM systems organize customer information and records of interactions such as phone calls, emails, live chats, service requests, purchases, and returns.
All flashcards
What is customer relationship management (CRM)?
A means of tracking, managing, and analyzing customer interactions and related information.
What does operational CRM support?
Automation of aspects of marketing, sales, and service, including work with leads.
What is analytical CRM?
A CRM category that organizes and analyzes customer data to identify trends and customer needs.
What is customer equity?
The potential profit associated with a company's current and potential customers collectively.
How can customer feedback contribute to customer equity?
It can help a business understand customer requirements and shape offerings that provide greater customer benefits.
Quiz questions
Which CRM category enables businesses to share customer data and gain additional perspectives?Answer: Collaborative CRM.
What does customer equity represent?Answer: The potential profit from a company's current and potential customers as a group.
What makes CRM a two-way relationship between a business and its customers?Answer: Customers can communicate their requirements, which can help shape the business's offerings.
Which activity is most characteristic of operational CRM?Answer: Automating aspects of marketing, sales, and service.
How can CRM help a company use customer knowledge to improve its offerings?Answer: It can organize customer interactions and feedback so the company can interpret requirements.
Based on Principles of Marketing by Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.