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In the world of information technology, CRM stands for customer relationship management. CRM technology is used to profile customers as well as track their buying records in order to assist the sales staff in providing better service for each customer. Overall customer relationships are improved as a result.

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In the broadest sense, CRM is a business philosophy that places customer needs as the most important focal point for a business organization. In the post World War II era, companies were successful just because they made a product - it could be anything.

Production capacity was most important. During the technology revolution of the 70’s and into the 90’s, product innovation became the most important drivers. More advanced products, whether perceived or real, drove sales.

But the market has changed. Copycats can produce near equivalent products in record-breaking time. And, in a global market, products can be subcontracted to satisfy any demand. Now, customers have more product choices than ever. It is no wonder that customer loyalty is declining. For these reasons many corporations now consider CRM their primary focus - a focus that attempts to maximize every sales opportunity and optimize every customer’s purchase and ownership experience.

Take for an example; professional ball team season-ticket holders can be made to feel a valued customer rather than just a “fan.” This can be accomplished if the organization keeps season ticket-holders informed of all activities and events and gives them priority in bookings and applications. Newly added team memorabilia and merchandise for sale can be targeted to the right customers. Fans like the special treatment and the organization reaps the benefits of making it easy for their customers to spend money.

The generally accepted purpose of customer relationship management (CRM) is to enable organizations to better serve its customers through the introduction of reliable processes and procedures for interacting with those customers. A successful CRM strategy is usually implemented through a CRM software package designed to support these processes.

While the notion of developing better relationships with customers is not entirely new, it is only with the convergence of information technology, telecommunications and the Internet that the whole concept of CRM Strategy really comes alive. For the first time major organizations with large customer bases now have the opportunity to offer customized one to one marketing. Resources

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