Describe the characteristics of a Customer Relationship Management System.

Customer relationship management (CRM) is an approach to managing a company’s interaction with current and potential future customers that tries to analyze data about customers’ history with a company and to improve business relationships with customers, specifically focusing on customer retention and ultimately driving sales growth.

One important aspect of the CRM approach is the systems of CRM that compile data from a range of different communication channels, including a company’s website, telephone, email, live chat, marketing materials, and social media.

CRM solutions give organizations business data to help provide services or products that your customers want, offer better customer service, help sales teams to cross-sell and up-sell more effectively, close deals, retain current customers and to better understand exactly who your customers are. Organizations frequently look for ways to personalize online experiences (a process also referred to as mass customization) through tools such as help-desk software, email organizers and different types of enterprise applications.

Special CRM software aggregates customer information in one place to give businesses easy access to data, such as contact data, purchase history and any previous contact with customer service representatives. This data helps employees interact with clients, anticipate customer needs, recognize customer updates and track performance goals when it comes to sales. CRM software’s main purpose is to make interactions more efficient and productive. Automated procedures within a CRM module include sending a sales team marketing materials based on a customer’s selection of a product or service. Programs also assess a customer’s needs to reduce the time it takes to fulfill a request.

All of the computer software in the world to help with CRM means nothing without proper management and decision-making from humans. Plus, the best programs organize data in a way that humans can interpret readily and use to their advantage. For successful CRM, companies must learn to discern useful information and superfluous data, and weed out any duplicate and incomplete records that may give employees inaccurate information about customers.


As Customer Relationship Management (CRM) is an important area of activity for any successful business, CRM tools are essential for any growing business; below demonstrated the key characteristics of a good CRM system:

  • Easy integration: a good CRM is a CRM which lets you quickly and easily import data from existing databases.
  • Ease of use: the best CRM system is useless if your employees don’t know how to use it. When deciding between CRM solutions make sure that the one picked is easy to use, has an intuitive interface, ample documentation and good user support. The time spent training the employees to use the CRM should be as short as possible – after all, the whole point of having a CRM is increasing efficiency, rather than wasting time.
  • Adaptability: make sure that the applied CRM is easily adaptable to the company future needs. A good CRM doesn’t just fit the company’s current needs, but also has the potential to grow; it should include multiple modules, features and possibilities for integration.
  • Positive impact on customer satisfaction: at the heart of every CRM, as the name obviously suggests, is maintaining positive customer relationships. This is why a good CRM is more than just a complicated address book – it should let the employees see a comprehensive customer profile. A CRM should also enable an easily answer customer questions and offer them relevant services. This way a CRM not only makes the company appear more professional, but also positively affects its revenues.
  • Easy reporting & overviews: watching the business grow is a key part of planning for the future. A good CRM should be used to analyze customer and employee activities and use the information for the benefit of the company. This is why the CRM chosen should have reporting and tracking features.

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