What Is Customer Relationship Management?

Some of the biggest buzz in the business world lately involves customer relationship management. This is one of the newest terms in a long line of management practices that might have some people scratching their heads and wondering exactly what is customer relationship management. Unlike some other business practices that have come and gone, customer relationship management is actually a very logical packaging of protocol and technological tools that can help ensure operations run smoothly.

But, what is customer relationship management exactly?

Customer relationship management refers to computer programs, Internet capabilities and even methodologies and policies that help a business make sure customer relationships are managed and organized properly. It boils down to all the best practices a business can put into place to ensure that every step of customer service is covered in an efficient, accurate manner with "service" in mind. This, in turn, helps a business develop stronger, longer-lasting relationships with customers.

An example that can help explain what is customer relationship management might involve the creation of a streamlined program that categorizes all of a company's clients and their unique needs. When this is done, any salesperson, customer service representative, billing agent or shipping operator can quickly look up and see what products or services a particular customer uses, what type of service they might benefit from and so on.

In general, what is customer relationship management tends to refer to computer-based programs that can help ensure a business runs as efficiently as possible. CRM tends to involve three different aspects that are sometimes used independently of each other. These center on operational, collaborative and analytical customer relationship management. Each has its own distinct qualities. They include:

  • Operational. This involves computerized support for a business and its internal processes. This type of software tends to help out customer service departments, sales teams and marketing efforts. A customer information database generally falls under this type of CRM.
  • Collaborative. This tends to hinge on the programming used via the Internet to ensure customers have an ability to interact directly with a company. It can involve other arenas, as well. Examples here include web sites with feedback and customer service abilities, e-mails, phone systems that are automated and so on.
  • Analytical. This involves the implementation of software that is designed to help with cross-selling, marketing, generating sales leads, forecasting financial outlook and so on.
While Customer Relationship Management does tend to hinge on technology, it is not solely dependent on it. It can describe a company's entire approach to handling customer service from its policies and procedures right down to how employees are trained.

What is Customer Relationship Management boils down to everything from technology to policies that ensure clients are serviced in the swiftest most efficient manner possible while capitalizing on information to ensure a business thrives.

Customer Relationship Management