Key elements of the definition:

Focuses on strategic impact rather than operational

impact.
Benefits are long term rather than immediate
CRM is a total discipline. It includes all the functions that
directly touch the customer.
Information
+Technology
+People
+Process
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=Products

Phases of Customer Management

Customer Relationship Marketing, which included a very strong
focus on the customer
Customer Relationship Management, which was supposed to
remedy the alleged neglect of other functions contributions to
the management of customer relationships;

Enterprise Relationship Marketing, which adds the supply chain

dimension;
e-CRM Electronic Customer Relationship Management which
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adds the focus of e-business;

Aspects of CRM
There are four aspects of CRM, each of which can be implemented
in isolation:
Active CRM: A centralized database for storing data, which can be
used to automate business processes and common tasks.
Operational CRM: The automation or support of customer
processes involving sales or service representatives
Collaborative CRM: Direct communication with customers not
involving sales or service representatives (self service)
Analytical CRM: The analysis of customer data for a broad range of
purposes
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The Benefits of CRM

From a company perspective
Lower Cost of Marketing
Common Growth for Marketers and Customers
Improve Customer Satisfaction
Improved Employee And Customer retention
Strong Customer Loyalty
Customized Marketing Efforts
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It helps companies to:

Identify customer needs
Rediscover the customer and understanding him
Identify untapped business potential
Identify fields requiring new technology and
development
Identify strong and weak points of supplier
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 Provide feedback to the supplier on his total

operation
Provide feedback and new information on
competitors
Bench mark to achieve global excellence
Get details on the aspects on which customer is
happy with the supplier and on those where he
feels that improvement needs to be incorporated
Develop an action plan to make organization
customer-centric
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