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CRM makes inroads

Customer Relationship Management software can help enhance service

By Doug Harper -- Industrial Distribution, 8/1/2001

It seems axiomatic that well before the beginning of the next millennium many of our jobs will suffer the same fate that has already befallen welders at automotive assembly plants: We will be replaced by computer-controlled robots running sophisticated software. In the meantime, inexpensive computers using increasingly complex software applications continue to bring digital power to new areas of expertise that were formerly the realm of human "guesstimates" and experience.

One of the latest manifestations of the alleged superiority of machine over mind is Customer Relationship Management software, whose task is to analyze customers' wants and needs in order to enhance customer satisfaction.

According to one CRM Web site, organizations were once easily able to differentiate themselves from their competitors by the type and variety of merchandise they offered, as well as value they added to their products.

But today, thanks to online purchasing and global competition, a distributor's customer frequently has multiple choices of vendors. As a result, companies have begun to focus increasingly on customer satisfaction and providing rapid and relevant customer service. This has not only brought about a change in focus, but also a change in the way the organization is structured.

A company can get a better understanding of its customers and what they expect from the organization with the use of a CRM program, proponents claim. One of the strengths of CRM software is that it helps identify the most profitable customers and pinpoint ways to retain their business.

IT Toolbox, an online IT consulting company, notes that "the need for accurate and timely information to the sales team is really important. The advantages are that the knowledge gathered by a particular person who has been interacting with the customer now lies with the organization and not with the person alone. With sales representatives' mobility increasing by the day, it is difficult to expect the same person to come in contact with the customer all the time. Now when a new person from the organization goes to the customer, he has to go about re-inventing the wheel in order to establish a rapport with the customer."

CRM software claims to provide benefits that include allowing companies to gather and access information about customers' buying histories, preferences, complaints, and other data so they can better anticipate what customers will want.

Other claimed advantages include:

  • Faster response to customer inquiries.
  • Quantification of customers' wants and needs.
  • Analysis of customer feedback that can lead to new and improved products or services.
  • The creation of customer profiles and demographic data that can be shared with business partners.

It goes without saying that, as with every area of human activity in the "E-era," numerous Web sites are devoted to CRM and the vendors of CRM software. Among the more thorough, broad-based CRM sites are:

CRM Forum — www.crm-forum.com

CRM Research Center — www.cio.com/forums/crm

CRM Guru — www.crmguru.com

CRM Community — www.crmcommunity.com

Real Market Today — www.realmarket.com

2 CRM.COM — www.2crm.com

But even if you think that CRM stands for Canadian Royal Mounties, you can send your comments and/or suggestions to harper.d@att.net.

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