3.01 Summary (A) -2

Customer relationship management (CRM) combines a business’s strategies, processes, technology, and people for the purpose of building, maintaining, and maximizing the long-term value of customer relationships. The modern business environment has seen the introduction of a new concept in CRM—customer experience management (CEM). While CRM is inwardly focused (gathering customer information), CEM is outwardly focused (guaranteeing positive customer experiences with the business). Businesses should establish CRM goals and strategies before putting a program into place. Common CRM practices include training and empowering employees, allowing customers to provide their own information, managing marketing campaigns, managing sales leads, managing customer service, and managing customer complaints. CRM has many benefits for a business, including helping to identify valuable customers, helping to create targeted marketing campaigns, helping employees to perform their jobs more efficiently, increasing word-of-mouth promotion, increasing customer satisfaction and loyalty, and increasing sales and profit.