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The Importance Of Customer Relationship Management

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Even though most companies have switched from product towards customer orienta-tion, they still need practical holistic concepts enabling efficient sales management and customer approaches.
According to PEPELS reporting systems are essential in today’s sales. This incorpo-rates appropriate goal setting and documentation of achievements to monitor progress and success. He further goes saying that reports need to be aligned with customer demands/needs so information gathered and retrieved is useful providing insight in customer satisfaction, reactions to offers, personal information, current status and overall buying habits. Over time this type of reporting and monitoring has become more and more computer-aided – including ERP-systems, CRM-systems,
…show more content…
CRM systems are designed to compile information on customers across different channels […] which could include the company's website, telephone, live chat, direct mail, marketing materials and social media. CRM systems can also give customer-facing staff detailed information on customers' personal information, purchase history, buying preferences and concerns.” Anyways, an increasing tendency of literature synonymously mixing up “CRM” with other terminologies like “relationship marketing” calls for precise demarcation. The term of “relationship marketing” was coined in the 1980s by BERRY stating, “Relationship Marketing is attracting, maintaining and […] enhancing customer relationships.” Further definitions are listed in the table (Table 1) …show more content…
• Sales management/planning and budgeting
• ABC classification
• Information management
• Monitoring of sales costs and field staff
CRM topics require sophisticated sales controlling in the first place. Having accurate sales controlling up and running allows for additional info sharing throughout the com-pany and associated customer controlling.
2.3.1.3 CRM goals and characteristics
According to the definitions CRM is a holistic approach of customer care and relation-ship management to maximize profits by focusing on customer satisfaction throughout all company areas. SCHUMACHER/MEYER specified CRM-related sub-goals that go along with cooperative relationships contributing to the overall vision of sustainable and increasing profits. These are directly related to the following CRM-benefits involved indicating why it’s reasonable to establish long-lasting relationships.
• Maintenance of existing customer relationships usually is more profitable than acquiring new ones.
• Learning effects allow cost savings with increasing duration of the relationship.
• Cross- and up-selling potentials are identified

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