What are the two steps in customer relationship management (CRM)? What is the goal of these two steps and how do you know your CRM effort is working?

Question

What will be an ideal response?

Answer 1

The steps involved in customer relationship management (CRM) are: (1) Gathering the data, and (2) Analyzing the data.
Gathering the Data: The key to CRM is the data on current or prospective customers. Given the power of repeat selling, the most valuable data comes from the existing customers. For all existing customers there are two kinds of data-contact data and performance data. Contact data gives the particulars on the customers while performance data gives the information on the date and type of contact.
Analyzing the data: In the end, the kind of analyses that business owners want to be able to perform are ones which give them a customer vector which is a type of data report from a CRM database which lets business owners summarize information by date, by product or service being sold, by groups of customers, or by the purchases of an individual person or firm. Reports such as this can help business owners decide how to operate several key aspects of your marketing effort.
The goal of all this data gathering and analysis is to increase your sales and help make your marketing efforts as economical as possible. The proof of a CRM effort is seen in (1) higher levels of customer loyalty in existing customers, (2) higher levels of purchasing from existing customers, and (3) more tracked prospects making initial purchases from a business owner.