3.01 CRM: More than just technology

“Customer relationship management”—conduct an Internet search on this phrase, and, most likely, you will come up with thousands of websites for companies trying to sell various software programs. For many people and businesses, this term refers solely to technology. But customer relationship management (CRM) is much more than that. It involves technology, but it also involves strategies, processes, and most importantly, people. It combines these elements for the purpose of building, maintaining, and maximizing the long-term value of customer relationships. 

Examples of CRM initiatives a business might undertake include:

  • Implementing a “frequent shopper” program that provides discounts and special offers to valued customers (Learn more about customer loyalty programs Links to an external site..)
  • Creating a “customer dialogue” section on its website, where customers can go to give feedback and offer suggestions
  • Ensuring that customers can always reach a live operator when calling the business’s help center
  • Installing software that allows employees to quickly access customer information when needed, enabling them to provide more individualized service and attention
  • Using technology to identify its most valuable customers so it can give them special attention and capitalize on their long-term value to the company 

A common myth about customer relationship management is that it is the same as customer service. Not so! Customer service is very important, but it’s just one part of a customer’s overall relationship experience with a business.

In the past, customer relationship management was used mainly as a way to track and organize information about customers so a business could identify its most valuable clients and tailor its marketing strategies to generate more revenue. Over the years, the meaning of CRM has expanded quite a bit. Today, it’s also viewed as a way for employees to perform their jobs more efficiently and for businesses to increase one of their most important assets—customer loyalty. In addition, it’s an important tool for use in business decision making and product development. As business changes, so does CRM. A closer look at modern customer relationships sheds light on how today’s businesses approach CRM.