CRM – Customer Relationship Management

What is CRM? Definition of Customer Relationship Management

CRM is an abbreviation of Customer Relationship Management, which literally means “managing customer relationships.” In practice, it is a comprehensive process aimed at building and maintaining lasting customer relationships that generate profits for the company. Currently, thanks to advanced technology, modern CRM systems can manage large amounts of data. The importance of the Customer Relationship Management process is emphasized, among others, by Anna Miotk, author of the book “New PR. How the Internet has changed public relations”: “CRM is the foundation of effective marketing. By analyzing customer data, we can create more personalized campaigns and build customer loyalty.”

Key elements of CRM

An effective CRM system combines several areas that, when used together, can deliver excellent results in customer relationship management. Jill Dyche, author of The CRM Handbook, emphasizes: “CRM is much more than technology; it is a change in organizational culture that puts the customer at the center of business activities.”

So what are the most critical elements of CRM?

• Technologies – such as advanced CRM systems and platforms that allow for the collection and analysis of large amounts of data. In the context of technology, the automation of business processes in areas such as marketing and customer service plays a key role.
• Strategy – its key element should be customer focus and value creation through the appropriate matching of the offer and the service process. Customer segmentation is also important, as it enables better identification of needs and more precise action.
• Processes – the most critical processes in the area of CRM are data management and secure storage, analysis that leads to the personalization of messages and offers for individual customers, and reporting.

What are the benefits of implementing CRM?

The benefits for companies deciding to implement a comprehensive Customer Relationship Management process include:

• Better understanding of customer needs.
• Improved customer satisfaction.
• Increased sales.
• Improved operational efficiency.
• Faster decision-making thanks to the availability of structured data.

Kate Leggett, an expert at Forrester Research, emphasizes the importance of CRM not only for customers but also for companies: “CRM is not just about improving customer satisfaction; it's also about increasing business productivity and efficiency.” Undoubtedly, Customer Relationship Management should therefore be treated as a key investment in a company's development.