The database or Customer Relationship Management system (CRM) keeps valuable information about the customers that
helps the supplier to understand their needs. Customer relationship management is a term given to methodologies or
software that helps a company to manage customer relationship in an organized way. Investigating the data on the customers
helps a lot to make out when the customers typically makes orders. The data also helps to analyze the performance of the
suppliers. Customer relationship management system is more valuable than simple mailing system because they hold
important information about customer behavior and preferences.
It helps to identify customer needs more effectively. A good CRM system can record all interactions between possible customers and those actually buying. One should always remember that in many situations it is not just one person who makes the decision to buy products in many cases more than one person is involved in the buying decision.
For example, children influence their parents. And in business markets, the bigger the amount of the
product the more people get involved in the decision. This is called Decision Making Unit (DMU). CRM also helps to understand this DMU. CRM system is hugely used because it decreases overall costs and also increases profitability. One of the largest drawbacks that CRM system faces is that it is not user friendly. It becomes tough for the user to navigate because of its difficult interface and complexity. But the biggest advantage of CRM system is that it provides the business or company the ability to create and manage the requests made by the customers.
Creating and scheduling appointments with customers is also managed by CRM software. CRM system is a sort of a strategy
that places customers in a pivotal position for the organization.