Customer Relationship Management were created out of the need for software to analyze customer’s data – transforming raw data into useful customer information. Now they are being configured to support all the external functions of a company.
The Customer Relationship Management CRM system was born because of the need for a software to analyze customer’s data – as for example its preferences – changing rough data that usually exists in any customer’s database, into important information about the same customer. That is to say, a new modern sales & marketing tool.
In this first period the data of an online and real-time accounting & management system was analyzed by this stand-alone CRM software, and in the following period those accounting & management systems integrated this initial marketing & sales functions of a CRM.
Soon after, this new accounting & management system – now integrated with the CRM functions – included a Call Center system of the last generation with or without a voice processing system – input and output – through the telephone system usually so loved by us.
Soon after appeared an obvious question: If the CRM support my customers, why don’t change it to support all the external functions of my company, as for example my suppliers, distributors, representatives, branches, affiliated companies, employees’s families, etc., each one with different needs and processings?
This is the current Customer Relationship Management CRM system, for everything concerning the external world of a company, and consequently its original name no longer represents its current functions in spite to be widely used.
Today we should split the IT system of a company in two great sides but in the near future will be only one system:
1. Enterprise Resources Planning ERP, for the internal world of a company, on which we will write another article in the near future,
2. Customer Relationship Management CRM, for the external world of a company.
However it’s absolutely necessary to understand that a CRM is not a software package that can be installed and immediately will be ready to work, but yes a system that obligatorily should be implemented by IT specialists together with the whole company in a continuous job, besides to be adapted to the specific needs of the company. And because the CRM was not interpreted correctly by a large amount of companies, recent research showed that 42% of purchased CRM systems are inoperative for been interpreted as a push-button software.
However if very well designed and installed, a CRM is a powerful tool for a company to grow on this digital business Century, certainly surpassing your competition and generating reasonable ROI Return on Investment.
J.C.Melo is a 73-years old IT professional with 54 years of experience in computer science & technology entrepreneurship. He was the owner of the first minicomputer factory in South America and Consultant for the U.S. Government in several contracts. Now is the CEO of the organization
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