Benefits Of Customer Relationship Management Essay

Benefits Of Customer Relationship Management - Essay Example Studies show that CRM was developed because consumer differed in their spending habits and preferences. If all consumers were alike, there would be less need for CRM. Consequently, understanding customer profitability and drivers can enable customers to better customize their offerings to optimize the general value of their client portfolio (Kaufmann, 2013). The attention that organizations are currently giving CRM is because today’s marketing environment is highly concentrated and more competitive. CRM is an enterprise-oriented concept covering all sections of a business (Baran and Galka, 2013). In addition, besides customer service, CRM would also encompass manufacturing, assembling, purchasing, product testing, sales and engineering, human resource, and marketing. CRM is a complex concept that mines customer information, which has been retrieved from all customer touch points, which then creates and supports the organizations to have a comprehensive perspective of the custo mer (Kaufmann, 2013). The result is that organizations can identify and determine the right category of customers and forecast the trend of their future purchases. CRM is also an all-embracing concept that smoothly incorporates field support operations, customer service, sales, and other processes that concern customers. CRM is a concept touching on how companies can retain their most profitable clients and simultaneously lower costs and increase values of engagement that then increases profitability (Baran and Galka, 2013).