{"id":593,"date":"2022-12-16T20:29:00","date_gmt":"2023-09-04T20:29:54","guid":{"rendered":"https:\/\/www.salesforce.com\/?p=593"},"modified":"2025-02-15T09:05:43","modified_gmt":"2025-02-15T09:05:43","slug":"the-basics-of-crm-for-dummies","status":"publish","type":"post","link":"https:\/\/www.salesforce.com\/eu\/blog\/the-basics-of-crm-for-dummies\/","title":{"rendered":"The Basics Of CRM, For Dummies"},"content":{"rendered":"\n

So what does CRM stand for anyway?<\/b><\/h2>\n\n\n\n

You might have heard the term mentioned online or around the office, and typed CRM into Google<\/a>, to discover that it stands for “customer relationship management”. But knowing what\u2019s behind the acronym isn’t the same as understanding what it really means for businesses operating in the real world. So to give you a more thorough grounding in the subject, here’s a quick dummies’ guide to CRM. If you\u2019d like a longer read, check out: What is CRM?<\/a><\/p>\n\n\n\n

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CRM \u2013 the back-story<\/b><\/h2>\n\n\n\n

Way back in 1954 management guru Peter Drucker wrote that “the purpose of business is to create and keep a customer”. CRM is the strategy you put in place to manage all your company\u2019s relationships and interactions with both customers and potential customers. The term also refers to the systems and processes you use to help you do that. Managed well, CRM has the power to directly improve profitability.<\/p>\n\n\n\n

It\u2019s not the 1950s any more<\/b><\/h2>\n\n\n\n

Drucker\u2019s maxim still stands, but the business world has transformed around it. Acquiring and keeping customers has become more complicated and sophisticated since 1954. Back then a business’s customer development would generally rely on reputation, footfall, advertising and recommendation. Technology has changed things enormously \u2013 these days, company websites and social media are linked to sophisticated backend systems capable of analysing marketing data and extracting patterns that can reveal new insights about your customers. <\/p>\n\n\n\n

From telephone and letters in the 1950s and 1960s to the first days of search engines and email in the 90s \u2013 all the way up to today\u2019s social media connections and data-driven personalisation, today’s businesses are faced with a multitude of ways to find and connect with new customers. The channels we use to connect are multiplying and evolving at a rapid rate. <\/p>\n\n\n\n

Fortunately, the CRM industry has kept pace, with online CRM solutions becoming the standard<\/a> and providing ways to gather and manage the many touch-points you have with your customers so that you\u2019re always communicating effectively. <\/p>\n\n\n\n

Understanding the basics of CRM<\/b><\/h2>\n\n\n\n

CRM is all about understanding what you know, and accessing the right information when you need it. Crucially, it\u2019s about contact management<\/a> \u2013 keeping up to date with who\u2019s who within client and prospect organisations, and building relationships. By focusing on the right people and relationships, you\u2019ll be able to help your customers but also improve your own sales pipeline and sales funnel<\/a>. From the first time you first make contact with a potential client, you can track the various stages of your interactions with them as they move from awareness to consideration to purchase \u2013 and keep them coming back again time after time.<\/p>\n\n\n\n