Discuss the purpose of customer relationship management (CRM) and its benefits.

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Customer Relationship Management (CRM) analyzes large volumes of data about customers, collecting information from emails, live chats, social media, phone calls, and interaction on the company's website.

By carefully analyzing all this data, companies are better able to meet the needs of their customers and can deliver a better value to empowered customers. They can increase the personalization of their services, focusing on customer needs and unique circumstances. CRM allows companies to be more responsive to the diverse needs of their customer base. It also allows them to customize marketing strategies, delivering the most pertinent information to the customers who are most likely to need it. This allows customers to be better informed about the products they are interested in purchasing. This also increases customer satisfaction; CRM allows companies to market the right products to the right customers, increasing purchasing confidence and satisfaction.

CRM also allows companies to determine how many customers are repeat customers and then analyze why they come back. By focusing on the qualities that customers look for in order to continue the business relationship, companies can better tailor their products and marketing to hold on to customers over a long period of time. Many customers enjoy feeling that they have been part of a personalized purchasing experience, particularly through communication that has been crafted based on a specific customer's needs. CRM can help build this data and can then create alerts for previous customers when new products hit the market that fall within that customer's purchasing history. CRM can also be used to foster lasting connections by sending information about product features that customers are not using, by sending relevant special offers, by updating them about company highlights, or simply by wishing them a happy birthday.

Business managers can utilize this data to make informed decisions about their marketing efforts. Because the data is being collected from various sources, there is a higher likelihood that patterns will emerge about customer trends and habits. Business managers can determine whether a particular customer is "shopping around" but not making any purchases or whether a customer makes the same purchase every three months. Being able to examine these kinds of trends makes it easier to measure the results of various sales efforts and to improve customer service.

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