Customer relationship management is the complex evaluation of consumer behaviour while taking into account the various factors influencing it. The objective of developing and utilizing CRM tools is to understand the past buying patterns, preferences and priorities of consumers to determine which customers are more likely to purchase certain products and services. CRM tools also helps in manoeuvring the customer data to favour specific business interests.
As a discipline, Customer Relationship Management entails a series of engagement techniques, research methodologies and practices that can help businesses achieve empirical success through increased transactions within a real time-frame.
Customer relationship management aims to help businesses meet their desired goals of financial growth by achieving sequential actionable targets. Customer relationship management can help small businesses prosper by examining past purchasing behaviours of a large number of customers. This is done mainly through customer interaction and evaluation of purchase records.
Based on this analysis the customers are then segregated into different categories based upon their needs and priorities. The companies use this list to identify the segment of customers that are the most profitable group of buyers or the persons most likely to buy their products or service. The findings attained from such studies are also applied in product development and policy making. Customer Relation management is also concerned with the retention of existing customers.