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Benefits of CRM PDF Print E-mail
Written by Cecilia Chee, Singapore   
Wednesday, 28 September 2011 16:55


Benefits of a CRM system

A properly implemented CRM system can bring significant benefits to organizations. But when I talk about a system, I mean the 3 P's, the complete consortium of people (employees, culture), procedures (way of doing business) and programs (supporting applications), not just an application running on a computer.

CRM is more than just the next wave of computer-aided marketing, it's a way of doing business.

Let's take a look at the advantages that a CRM or Customer Relationship Management system can bring.

  1. Shared or distributed data
    As companies realize that customer relationships are happening on many levels (not just through customer service or a web presence), they start to understand the need for sharing all available data throughout the organization. A CRM system is an enabler for making informeddecisions and follow-up, on all the different levels.
  2. Cost reduction
    A strong point in Customer Relationship Management is that it is making the customer a partner in your business, not just a subject. As customers are doing their own order entry, and are empowered to find the info they need to come to a buy decision, less order entry and customer support staff is needed.
  3. Better Customer Service
    All data concerning interactions with customers is centralized. The customer service department can greatly benefit from this, because they have all the information they need at their fingertips. No need to guess, no need to ask the customer for the n-th time. And through the use of push-technology, customer service reps can lead the customer towards the information they need. And, most of the time, the customer can do this on their own, as the CRM system (remember, the 3 P's) is more and more able to anticipate the need of the customer. The customer experience is greatly enhanced.
  4. Increased Customer Satisfaction
    The customer feels that he is more "part of the team" instead of just a subject for sales and marketing (the proverbial number), customer service is better, his needs are anticipated. There is no doubt that customer satisfaction will go up. If the products sold exceed the customers expectation, of course, no CRM system can help you with shoddy products. In my opinion, the term statisfaction is a contaminated. Many companies think that if customers are satisfied that this is a good predictor for repeat business. However, this is not the case. Onlydelighted customers have a great level of loyalty.
  5. Better Customer Retention
    If a CRM system can help to enchant customers, this will increase customer loyalty, and they will keep coming back to buy again and again, hence customer retention.
  6. Loyal customers
    Need I say more? Q.E.D.
  7. More repeat business
    The repeat business is coming from the delighted customers, who are turned from doubting clients into loyal advocates.
  8. More new business
    If you are delivering the ultimate customer experience, this will seed the word-of-mouth buzz, which will spawn more new business.
  9. More Profit!
    More business at lower cost equals more profit.


Last Updated on Thursday, 03 November 2011 17:27
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