Difference between Customer Relationship Management (CRM) and traditional marketing? (What role can CRM system play in the customer relationship management of an organization)

Customer Relationship Management (CRM) is the use of information science and technology, the realization of marketing, sales, service and other activities automated, so that enterprises can be more efficient to provide customers with satisfactory, thoughtful service to improve customer satisfaction, loyalty for the purpose of a kind of management operation. Customer relationship management is both a management concept and a software technology. Customer-centric management concept is the basis for CRM implementation.

Customer Relationship Management CRM (CustomerManagement), is a kind of "customer relationship one-to-one theory" as the basis, aims to improve the relationship between the enterprise and the customer's new management mechanism.

The earliest development of customer relationship management is the United States, the concept was first proposed by GartnerGroup, in the early 1980's there is the so-called "contact management" (ContactManagement), that is, specializing in the collection of all the information on customer contact with the company, to the 1990's has evolved to include call center. In 1990, it evolved into customer care (Customercare), which includes the analysis of call center support data. It became popular in corporate e-commerce.

The purpose of CRM system is: to meet the special needs of each customer, with each customer to establish contact, through the contact with the customer to understand the different needs of the customer, and on this basis for "one-to-one" personalized service. Usually CRM includes sales management, marketing management, customer service system and call center.

"Customer-centric", improve customer satisfaction, cultivate, maintain customer loyalty, in today's e-commerce era is increasingly important. Customer relationship management is precisely a new management mechanism to improve the relationship between enterprises and customers, and more and more enterprises are using CRM to increase revenue, optimize profitability, and improve customer satisfaction.

Statistics show that the size of the CRM market for small and medium-sized enterprises (SMEs) reached $800 million in 2008. In the following five years, this market will grow rapidly to $1.8 billion, accounting for more than 30% of the overall CRM market.

CRM system mainly contains traditional CRM system and online CRM system.