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What is CRM

CRM methodology enables the organization to understand the customers’ needs and behavior better. It introduces reliable processes and procedures for interacting with customers and develop stronger relationships with them. The process helps organization in assimilating information about customers, sales, marketing effectiveness, responsiveness, and market trends. Then this information is used to give insight into behavior of customers and value of retaining those customers. The whole process is designed to reduce cost and increase profitability by holding on to the customer loyalty.

A good strategy will be to integrate every area of touch point with customers like marketing, sales, customer service, and field support. This is achieved with the integration of the people, process, and technology in the business.

Objectives of CRM

CRM, the technology, along with human resources of the company, enables the company to analyze the behavior of customers and their value. The main areas of focus are as the name suggests: customer ,relationship , and the management of relationship and the main objectives to implement CRM in the business strategy are:
• To simplify marketing and sales process
• To make call centers more efficient
• To provide better customer service
• To discover new customers and increase customer revenue
• To cross sell products more effectively
The CRM processes should fully support the basic steps of customer life cycle . The basic steps are:
• Attracting present and new customers
• Acquiring new customers
• Serving the customers
• Finally, retaining the customers


The following are the benefits of adopting CRM processes:
• Develop better communication channels
• Collect customer related data
• Create detailed profiles of individual customers
• Increased customer satisfaction
• Access to customer account history, order information, and customer information at all touch points
• Identify new selling opportunities
• Increased market share and profit margin
• Increased revenues
• More effective reach and marketing
• Improved customer service and support
• Improved response time to customer requests for information
• Enhanced customer loyalty
• Improved ability to meet customer requirements
• Improved quality communication and networking
• Reduced costs of buying and using product and services
• Better stand against global competition

Company types that must adopt CRM

Companies that do not have repeat business from customers will not gain much from CRM. And also that have walk-in customers not providing multiple sales and service channels will not benefit much from CRM. Again if maintaining long term relationship with customer is not a priority for the company, it will be wise not to invest in CRM.
Then who benefits? The more the channels to access customers and more the number of touch points with customers, greater is the need for CRM installation. Companies in
• banking
• finance
• insurance
• airlines and hotels
• telecommunications and health care benefit from installing CRM software.

© 2016 Prologix Systems Pvt Ltd. All rights reserved.

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