What is Customer Relationship Management?

What is Customer Relationship Management?

It has to do with the efficient use of information. The more efficient use of information you already possess can improve your profits. All that is required is an appreciation of how to use your information better, so it reduces costs and maximises your profits. Virtually every Company has developed practices that can now actually hold back the Business. Information is money, if it is used properly.

One of the problems with information is that it is very easily stored, but not often easily retrieved. Yet it is precisely the ease of retrieval which governs the usefulness of the information. Having a list of your Customers does not, in itself, make you money. Being able to tell immediately which are your best Customers, whom you could target for greater sales; that will bring you an increase in money. Having the communication/transaction history of the individual Customer in front of you when the Customer telephones you, makes for a happy, impressed customer. This can lead to more repeat sales as they are convinced that you value their custom and this enhances your reputation.

It used to be described as "Business acumen", but now we speak of "Customer Relationship Management", but it basically comes down to the same thing. It is about knowing your Customers, but in a depth previously not considered possible; and then acting on the information.

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