Some business organizations tend to view information technology as something they use only to manage the back end of operations, such as doing in-house accounting to track return on investment and the profitability levels of various departments. A more expansive view of IT solutions, however, includes the direct use of technology to build the business toward additional profits. Many ways exist to do this; one of the most powerful is CRM.
What is CRM?
CRM stands for Customer Relationship Management. The term in general industry use typically refers to the utilization of software and the world wide web to improve the ways in which businesses interact with customers. CRM is frequently provided as part of a managed services approach that integrates SaaS, software as a service, with the existing ways in which employees use applications.
How CRM Can Help the Bottom Line
Many IT solutions increase profitability by driving down costs, but CRM has the potential to increase it by adding revenue in the form of additional sales. One common application of CRM is for managed services personnel to build and then help administer a database of customer information. This database, frequently cloud-based, becomes a central repository that personnel from many different departments can use to access data needed in order to better meet a customer's needs and thus leading to increased sales.
Some applications of CRM also allow customers themselves to access central repositories of data so that they can see what other product offerings might meet their evolving needs.