What is CRM?

Wikipedia Definition of CRM (Customer Relationship Management):

'Customer relationship management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer information'.

CRM can be summarized as the process of managing and enhancing customer interaction across all possible touch-points. A non-exhaustive list of CRM dimensions includes Customer Acquisition, Customer Service, Customer Support (Technical, Transactional etc.) and Customer Retention.

CRM involves a more customized marketing process than traditional mass media can allow and this has been possible to to the great strides technology has taken over the past few decades. But to deploy a successful CRM structure, a business needs to put some basic technology in place including a detailed Customer Database, including customer basic information and purchase contact history and a highly developed horizontal integration across functional groups like technology, operations, front-end customer support and marketing.

Not surprisingly the most advanced CRM systems exist in Financial Services, Tele-communications, B2B and high-end Technology industries, since these industries have the highest one-on-one interaction with their customers.

By its very nature CRM is suitable for some industries and not so cost-effective for others. CRM is best suited for industries like Financial Services, Telecom, Hospitality, Airlines/Travel, and Technology. CRM may not as efficient means for Fast Moving Consumer Goods and high volume/low margin industries.

The above matrix evaluates CRM vs. Mass Media as a Marketing resource on the basis of product sales volume and unit price.