Three Phases of E CRM (E - Business) Unit III

E Business CRM

Customer Relationship Management (CRM) is a relationships and interactions with your customers and potential customers. It helps you improve your sales and profitability.

The Three Phases of CRM

Customer relationship management plays an integral part in a typical company's marketing system CRM is a process of gathering and analyzing customer data, building precise marketing campaigns and managing relationships for optimized retention.

1. Customer Acquisition

Acquiring customers has always been the first important step in establishing business relationships. With CRM, advanced software databases are used to capture key customer data at the point of first contact.

It includes customers’ name, address, phone number, email address and sometimes social media accounts. Entering this data into a computer enables future and ongoing communication access.

The other major benefit of starting a formal relationship with new prospects and clients is the ability to track their behaviors through data analysis.

2. Customer Retention

The real purpose of gathering data on acquired customers is to improve retention rates.

3. Customer Extension

The customer extension phase of CRM includes activities intended to draw out the length of typical customer relationships, enabling greater revenue. A simple perspective is that satisfying a customer during one buying experience increases the likelihood of a follow-up visit.