Benefits of Implementing Customer Relationship Management
Nowadays, more and more business organizations use specialized CRM software so as to manage their customers and related analysis requirements. There are various benefits of using CRM tools, which are as follows:
Better awareness about the customers: There is a general saying in all the types of industries, that , the more an organization know about its customers, the better would be their satisfaction. CRM enables a business organization to understand the real needs and demands of the customers by identifying and recording each and every engagement of a customer with the organization. This immensely helps a business organization to exactly deliver what a customer wants and requires.
Automation of routine tasks: CRM enables a business organization to reduce its dependence upon its employees so as to perform repetitive marketing-related tasks. This not only enhances employee productivity but also saves huge amounts of time, energy, and resources for a business organization. For example, as soon as a sale is entered into the system, it would automatically send marketing emails to a long list of potential leads.
Generation of reports: A mere collection of raw customer-centric data would not suffice in achieving high levels of customer satisfaction. Rather, this raw data must be transformed and presented into meaningful formats, such as histogram and pie chart. With CRM, an organization can generate statistical reports and can further analyze them for a better understanding.
Types of Customer Relationship Management
There are primarily three types of CRM, which are as follows:
Cloud-based CRM: In this type of technology, the data pertaining to the customers is stored at an external location on a cloud network. This helps business organizations with limited resources and technological expertise store data using any third party’s services. Further, employees of an organization from anywhere and anytime could access the data stored on the cloud.
On-premises CRM: Data security with possibilities of a data breach remains a potential threat in the cloud-based CRM. For this reason, several larger corporations and business organizations prefer to use on-premises CRM, wherein the data is stored at their own data centers and data servers.
Open-source CRM: It is a possibility that the readymade CRM software might not suit an organizationâ€™s business or style of working, and it might have the need to make a few changes to finally implement and use the system. An open-source CRM enables such organizations to make changes to the source code available to the general public.
Challenges Faced by Customer Relationship Management
Despite its booming success and widespread use, CRM is marred by a variety of issues and challenges, which are as follows:
Threat of data loss: CRM succeeded those sticky notes and physical sheets, which were earlier used to store customer-centric data. Such data is now stored digitally, either on a cloud or on the organizationâ€™s own data centers. Both the storage places are highly unpredictable and experience frequent issues of the outage or permanent failures. A practical occurrence of such an event could make an organization lose its data permanently.
Increased costs: Implementation and usage of CRM software require an organization to pay the periodic subscription fees and requires it to manage and hire system administrators, maintenance personnel, etc. This considerably increases the overall costs of the organization, making its operations expensive and ultimately reducing profitability.
Resistance to change: Since CRM would manage and automate most of the repetitive tasks, the employees of the organization might not be interested in implementing it with fears of job losses and downsizing. This could severely affect the overall productivity of the employees of the company, and it might not be able to achieve its goals and targets.
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