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What is customer relationship management? why should use it?

Published on: 2019-06-06

What is customer relationship management? Why should it be used? As market competition becomes increasingly fierce, traditional enterprise management systems are finding it more and more difficult to handle dynamic customer relationships and customer channel management. CRM customer relationship management has brought major changes to enterprise operations and management.

What is customer relationship management:

Customer Relationship Management (CRM) is a system used to manage interactions between a company and its current and future customers. It usually involves using relevant technologies to organize, automate, and synchronize sales, marketing, customer service, and technical support. The book Customer Relationship Management (CRM) comprehensively introduces all aspects of CRM from the perspectives of management, technology, and application. It can serve as a textbook for e-commerce majors and can also be read and referenced by people engaged in CRM research and practical application.


Customer Relationship Management


Why use customer relationship management:

1. Identify target markets

For any enterprise, the target market is composed of different types of customers. Based on composition ratio, customers can be divided into four major categories: core customers (1%), major customers (4%), ordinary customers (15%), and small customers (80%).
In actual operations, many enterprises cannot accurately identify customers, causing resource input and business strategy to lack clear targets. CRM can efficiently support enterprise analysis of customer commercial value, identify important customers based on cost and profit analysis for different customers, and help enterprises formulate different strategies for dealing with these different customer groups.
2. Systematize customer management
Under traditional management models, customer management is usually decentralized. No single department can fully grasp the whole picture of customer information, nor can it provide complete information about interactions between the enterprise and customers. For example, the sales department holds customer files and sales information, the after-sales service department holds customer complaint and repair information, the finance department holds customer capital and credit information, the design department conducts product R&D and design according to customer needs, the production department manufactures according to orders, and the logistics department delivers goods according to orders.
3. Enhance enterprise profitability

The reason enterprises implement CRM is that its guiding principle is to understand customer needs, conduct systematic analysis and tracking research on them, and on that basis provide one-to-one personalized services, thereby improving customer satisfaction and loyalty and bringing more profits to the enterprise.


Customer Relationship Management


4. Improve the core competitiveness of the enterprise

The role of customer relationship management is not simply to develop more new customers or retain more old customers. Its uniqueness lies in the fact that by realizing upstream supplier partnership management and downstream customer service, it enables enterprises to form positive multi-dimensional interactions with upstream suppliers and downstream customers. While developing and maintaining customers, enterprises also build good relationships with business partners and suppliers, maximize the mining, coordination, and utilization of enterprise resources, including information resources, customer resources, production resources, and human resources, expand their room for survival and development, and enhance their core competitiveness.

The above is an introduction to customer relationship management. Compared with traditional management models, enterprises that use CRM customer relationship management have more prominent advantages.Nowadays, domestic companies are paying more and more attention to customer management, and in order to better retain customers, many companies have chosen CRM systems. Guangdong Soonfor Furniture Software Co., Ltd. is a leading domestic provider of furniture ERP software, MES systems, and CRM software. It is a driving force behind the information-based and intelligent transformation and upgrading of the furniture industry. With more than twenty years of focus on the development and promotion of furniture enterprise management software, management consulting, intelligent manufacturing, and intelligent marketing, it provides comprehensive and mature solutions for information management in the home furnishing industry.

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