CRM and its Components - Why are they essential?

CRM comprises several components absolutely essential to the organization. Each of them offers something different yet its importance cannot be undermined. Recent trends have enabled users to combine two or more components for better success.

The Components of CRM are:

1. People Management
2. Lead Management
3. Sales Force Automation
4. Customer Service
5. Marketing
6. Workflow Automation
7. Business Reporting
8. Analytics

People Management

People Management is nothing but the effective use of people in the right place at the right time. It is imperative to adopt the right measures to ensure that the people skills match their job profiles. This is every large corporates requirement as well as small and medium industries. According to People Management an effective people strategy is first adopted, then the workforce is studied, skills and development analyzed and finally the required strategy needed for development and change is set down and implemented.

Lead Management

Lead Management basically involves the tracking and distribution of sales leads. This benefits the sales, call centre and marketing industries as well. The work involves managing market campaigns, making customized forms, mailing lists etc. All this is done with a view to capture as many sales leads as possible so that sales benefits. This is achieved through a comprehensive study of customer purchase patterns and the identification of potential sales leads.

Sales Force Automation

Sales Force Automation is by far one of the most essential components of customer relationship management and also one of the first. Used by almost all organizations it is nothing but a software solution that includes forecasting, tracking potential interactions and processing of sales. The reason this is adopted as part of a CRM solution is because of the need to identify revenue possibilities.

Customer Service

The customer service component in CRM is essential. This is because CRM focuses on collation of customer data, gathering information about their purchase patterns and provides this information to every department that requires it. Therefore vital departments like sales, marketing and personnel stand to gain in their knowledge of the customer. This enables the organization to provide suitable solutions to every customer and thus enhances customer retention and loyalty.

Marketing

Marketing is nothing but the promotional activities that are involved in promoting a product either to a general public or to a specific group. Marketing is different from sales and advertising in that one refers to act of selling itself while the other refers to the strategy involved. Customer Relationship Management facilitates the marketing function in that it increases the effectiveness of marketing by studying the potential targeted customers.

Work Flow Automation

Work flow processes include cutting costs and streamlining processes. It basically saves several people from doing the same job again and again. It reduces work and relieves work force of unnecessary tasks. It also includes things like routing out paperwork and filling out of forms that are essential. It also includes the integration of people and processes so that they work together in harmony towards a common objective without any loss of time, money or effort.

Business Reporting

This is nothing but being able to identify the exact position of your company at any given point of time. CRM plays a pivotal role in that it provides reports on the business. The advantages of this component include the ability to have this information at your instant access at any time. Accurate reports are also ensured .While forecasting is yet another feature it is also possible to actually export these reports to other systems. Historical data can also be saved to use for comparisons later on.

Analytics

Analytics involve the study of data so that information can be used to study market trends. A complete trend study is made possible due to the ability to create charts, figures and diagrams using both historical and current data. For information like charts tables, log INS etc dashboards can also be used for increased visibility. This is an essential and pivotal part of CRM as it enables a study of data that is needed to make an estimate of the business condition at any given point.

The latest trend involving CRM components is the use of web services which enables organizations to take various components from different industries and basically use them together in a manner that suits their business needs. CRM reviews will give the required information pertaining to what solution provides which functional component.

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