CRM = Customer Relationship Management. Works on 3 principles: (1) Protecting current customers (2) Fostering and tracking new customers (3) Increasing asset value of all customers. Ultimate focus = increase profitability. CRM = proactive (not reactive) strategy. Requires centralized data collection for real-time business vision. CRM is a two-way process (buyer and seller). Customer = backbone of any business = “real boss.”

Call centres = best CRM tools. CRM requires phone + computer system. When a customer calls → CRM displays customer details on screen including: previous purchases/orders · possible future requirements · current account balance. Hotels and restaurants benefit greatly from CRM systems.

1. Data Reporting: All customer data entered, organized → realistic, flexible, comprehensive database. Analyzes existing data for behaviour and requirements. Tools: marketing data analysis, billing analysis.
2. Simplicity: Application must be simple enough for even an amateur. Complicated systems kill motivation.
3. Remote Access: CRM must be usable from distant locations (trade shows, offices etc.) — not confined to one room.
4. Mobile Access: Supports iPods, mobiles, and other electronic devices. Service phone number + instant chat lines are essential.
5. Integrated Analytics: All data analysed for targeting consumers, selecting campaigns, finding best treatment strategies.
6. Stronger Multichannel Support: Must be available online AND offline. Service phone number + instant chat lines required.
7. Customization and Flexibility: CRM must be customized for organization’s specific needs. Processes supported by flexible CRM solutions.

1. Better Customer Relationship — deeper connection with clients
2. Increased Team Spirit — management + staff aligned
3. Improves Efficiency in Serving Clients — better knowledge = better service
4. Staff Satisfaction — empowered, engaged employees
5. Better Understanding of Customers — knows needs and wants
6. Increases Revenue and Profitability — additional products/services offered
7. Cost Savings — central database, no duplicate spreadsheets
8. Less Client Attrition — when 5+ partners involved in client relationship, attrition risk very low
9. Improves Customer Relations — via servicing, marketing, selling in organized way
10. Increases Revenue — more effective marketing campaigns
11. Better Internal Communication — sharing customer data between departments
12. Optimizes Marketing — identifies correct time to market + most profitable customer groups

Customer profiling = strategy to understand the customer and their needs. Helps find new valuable customers + retain existing ones. Profile brings together customer information + market trends for effective marketing and selling. Interaction channels: mobile staff, websites, call centres, email campaigns, stores, marketing. Analysts collect + analyse data for a holistic view of each individual customer.