Customer relationship management

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CRM, short for Customer[3] Relationship Management, is a strategic blueprint employed by businesses to enhance and manage their customer interactions. This approach, which has its roots in the database marketing[1] concept of the early 1970s, has adapted over time to include advancements such as data warehousing and SaaS (Software as a Service). CRM is divided into strategic, operational, analytical, and collaborative categories, each fulfilling unique roles. The ultimate objective of CRM is to increase customer loyalty and satisfaction, mitigate complaints, and amplify the worth of customer relationships. A robust CRM strategy encompasses the gathering of customer data, employee training, and the use of social and location-based services to bolster customer engagement[2]. Benefits of this strategy include elevated customer understanding, personalized interactions, and increased efficiency.

Terms definitions
1. database marketing. Database marketing, a strategic business method for collecting, storing, and analyzing customer data to enhance marketing initiatives, first gained traction in the 1980s. Its evolution has been shaped by shifting marketing dynamics and the introduction of new technologies. Large enterprises in industries such as finance, telecoms, and retail find this approach particularly useful due to the vast amount of customer data they handle. The data gathered typically encompasses customer demographics, purchasing history, and previous interactions. Businesses utilize this information to interpret customer behavior, predict upcoming trends, and tailor communications. Despite its benefits, database marketing encounters regulatory obstacles due to privacy issues, necessitating strict compliance with various data protection regulations. Technological innovations like CRM systems are useful in handling individual customer relationships, but the relevance of data can be problematic due to its potential to become outdated.
2. customer engagement. Customer engagement, a concept introduced between 2006 and 2008, refers to the interaction and engagement of consumers with a brand or business. This interaction can occur in both physical and digital environments and significantly influences marketing strategies. It encompasses the collaborative creation of personalized experiences, with immersion, passion, and activation being key aspects. Nevertheless, ethical issues may emerge, particularly in relation to optimizing user engagement. Technology is a critical component in customer engagement, promoting an interactive environment and establishing links between consumers and businesses. Social media platforms also have a profound impact on customer engagement, with content and influencer activities shaping engagement tactics. Measuring customer engagement is essential, with metrics such as likes, responses, and retweets on Twitter serving as indicators. This intricate interplay between companies and their customers is geared towards fostering loyalty and long-term relationships.

Customer relationship management (CRM) is a process in which a business or other organization administers its interactions with customers, typically using data analysis to study large amounts of information.

CRM systems compile data from a range of different communication channels, including a company's website, telephone (which many software come with a softphone), email, live chat, marketing materials and more recently, social media. They allow businesses to learn more about their target audiences and how to better cater to their needs, thus retaining customers and driving sales growth. CRM may be used with past, present or potential customers. The concepts, procedures, and rules that a corporation follows when communicating with its consumers are referred to as CRM. This complete connection covers direct contact with customers, such as sales and service-related operations, forecasting, and the analysis of consumer patterns and behaviors, from the perspective of the company. According to Gartner, the global CRM market size is estimated at $69 billion in 2020.

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