Customer relationship management (CRM) is the practice of improving a business’ communication with current and potential customers. It’s critical in today’s economy where customer service is vital to success.

In simple terms, CRM is the management of customer relationships. The significance of customer relationship management is something all organizations, big and small, are aware of. In order for CRM to be successful, it must be incorporated in business practices at all levels. This includes customer-facing employees, such as sales staff or cashiers, as well as top management.

The need for CRM is clear when we examine the impact it has on business. Let’s take a closer look.


  1. Need For Customer Relationship Management

  2. Technology And The Importance Of CRM

Need For Customer Relationship Management


With the growing importance of CRM, a sound strategy can improve customer service, increase sales, enhance employee productivity and reduce costs. The result is a stronger organization that’s better able to meet the changing demands of customers. Here are a few ways in which the importance of CRM can be unlocked:

  1. Establishing a well-developed CRM plan lets organizations focus on satisfying each customer’s unique needs. It ensures customer loyalty and retention, optimizing sales opportunities.
  2. The importance of customer relationship management lies in the fact that it can help gather information more efficiently. CRM allows organizations to survey customer feedback throughout the year and use that information to make changes, making sure customers have a superior experience.
  3. CRM allows employees to focus on providing the best customer service possible by taking the guesswork out of it. These employees can be more productive if they’re able to provide service and maintain the relationship with each customer with specific and targeted information.
  4. CRM provides an environment for company leaders to take a more proactive role with customers. It helps to more effectively identify trends in customer needs and develop a plan of action to meet them. It can help isolate problem areas and prevent them from becoming more widespread.


CRM helps people work more efficiently by focusing on the customers’ needs and providing prompt solutions for them. It allows businesses to communicate with customers in a way that helps them make sound purchasing decisions, increasing revenue. That’s why there’s a need for CRM.

Technology And The Importance Of CRM


The importance of CRM stems from the fact that it’s a means of communication and a way of gathering information.

An organization is only as strong as the customers who support it. Organizations that realize the importance of customer relationship management can effectively develop strategies for it. The traditional way in which businesses developed a strong customer relationship was through in-person interaction, or “touch points”. These were times when employees interacted with customers at different stages in the relationship. It could be in the field during sales calls, at the front desk, or when customers picked up their items. With modern technology, however, the idea of the customer relationship deepened. Some ways it’s used include:

  • Newsletters
  • Call center support
  • Location based offers
  • Data analytics
  • Tracking people by job title and contact information
  • Keeping track of what they’ve bought
  • Keeping track of their actions (on a website or elsewhere)
  • Generating follow-up tasks and emails
  • Storing information about products and services they’ve bought so they can be updated more easily
  • Tracking leads, contacts and opportunities in one place


New technologies have transformed sales and service activities into a coordinated system that helps a business grow. The result is that organizations have become more customer focused.

A strong CRM strategy incorporates technology with human knowledge and skill to create an integrated system through which companies can provide optimal service to their customers. We see the importance of customer relationship management in the entire process of looking after current customers. It shapes how they perceive a brand and how organizations communicate with them and provide services.

Service is the heart of many businesses, and at the heart of service is communication. That’s why Harappa’s Confident Communication Program can further the impact of an organization. It’ll help teams on their customer service journey through improved listening skills and to make more persuasive points using storytelling techniques. Negotiation skills and better body language will also improve customer experience and conversion. Empower your sales force with the knowledge they need to succeed with Harappa!

Explore Harappa Diaries to learn more about topics such as Customer Relationship Management, Examples Of CRM, Importance Of Customer Service and Customer Service Skills that will help organizations tap into employee potential.

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