CRM systems connect the ERP system to its customers and cover the whole process by which relationships with customers are built and maintained. CRM systems are designed to integrate the range of information systems that contain information regarding the customer
These include applications such as customer details and preference databases, sales order processing applications and salesforce automation. The idea is to acquire customers, retain customers and increase customer involvement with the organisation. CRM systems are built around a database and when this database is accessed by employees and customers using a web site the technology is often referred to as e-CRM. Common applications which would be integrated in a CRM system include:
These include applications such as customer details and preference databases, sales order processing applications and salesforce automation. The idea is to acquire customers, retain customers and increase customer involvement with the organisation. CRM systems are built around a database and when this database is accessed by employees and customers using a web site the technology is often referred to as e-CRM. Common applications which would be integrated in a CRM system include:
- Customer data collection. This can include personal details such as age, sex and contact address, also a record of purchase transactions undertaken in terms of factors such as location, date, time, quantity and price. This information can be used by call centre staff to improve and tailor their services to individual customers
- Customer data analysis. The captured data allow the categorisation and targeting of customers according to criteria set by the firm. This information can be used to improve the effectiveness of marketing campaigns.
- Salesforce automation. The entire sales cycle from lead generation to close of sale and after-sales service can be facilitated using CRM.
The technology must support all of these applications through whatever communications channel the customer and employee use. Communication channels include face-to-face, mail, phone and e-mail as well as web-based interaction. As with other technologies the implementation of CRM is a choice between attempting to integrate a number of legacy (existing) systems such as sales order processing and choosing a single-vendor supplier such as for ERP. Single-vendor systems from suppliers such as SAP and Oracle are able to provide better integration and thus potentially better customer service. However, they are relatively expensive to install and one firm is unlikely to supply the best-in-class applications in all aspects of the CRM implementation.
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