Is CRM a marketing

Customer relationship management / CRM

Customer relationship management can be roughly translated with management of customer relationships and already makes it clear that CRM is, among other things, about the design and maintenance of all relationships and interactions with existing and potential customers. In addition to interaction with the customer, customer relationship management also encompasses all of the company's processes such as systematic planning, control and implementation.

CRM in connection with the use of the Internet is known as E-CRM. CRM software facilitates the process of compiling and visualizing data and recording changes.

The focus of CRM is the long-term customer loyalty to the company. So it's about selling products in a targeted and long-term manner and not many products to as many customers as possible.

Central administration of customer data

In order to enable personalized and targeted customer service with individual support, the personal data and information of customers are collected and managed. In addition, the customer information collected is used for marketing and sales purposes as well as for research and development. Thanks to the database, one would like to understand the customer better and optimize customer processes.

This creates a kind of cycle. The customer database supports targeting, for example, in order to display more targeted advertising. This can then be sent in the form of a newsletter. The analysis of the mailing in turn improves the existing customer data.

By analyzing the purchasing behavior of the customer relationship management, advertising campaigns can be created according to the needs of the customers in order to generate higher sales. CRM therefore also has an impact on the success of the company, especially since CRM binds customers to the company.

With CRM, it is not the product to be sold that is the focus of the company's processes, but rather the customer and customer service. Nowadays, generating new customers is much more expensive for companies, which is why CRM is used to establish long-term customer loyalty to interested and existing customers.

Four components in customer relationship management

Customer relationship management is divided into the following components:

Analytical CRM

  • Analysis of customer and transaction data
  • Obtaining relevant knowledge from customer data such as properties, behavior and value creation potential of customers

Operational CRM

  • Information is used for ABC analyzes, market segmentation, cross-selling, newsletters, mailings and post-phone calls

Communicative CRM

  • Management of communication channels such as telephone (inbound / outbound), e-commerce, social networks, e-mails, fax and letters

Collaborative CRM

  • Implementation of customer relationship management not only within a company, but also externally, for example for suppliers, sales channels, service providers or logistics companies