To implement CRM, following factors need to be given due consideration:

• - Easy interaction between customers and company, enhancing quick response to customers' request and suggestions
• - Easy access to information about company like content of customization, advantages of the company, benefits doled out to the customers. This establishes profitable relationships with the customers based on mutual trust and respect
• - Abundant supply of customer information which have been accumulated and integrated from different channels
• - Grow with customers i.e. customers' information should be updated along with the passage of time
• - Have cordial relationship with other companies targeting the same customer segment. Thus giving relevant solution to customers' need and increasing acknowledgement to customers
• - Customers' information must be segmented to provide support for customization based on personalized information i.e. tailoring the company's product and services accordingly

Improvement in customer relationships increases customer loyalty, decreases customer turnover, increases sales revenue, and decreases marketing costs, thus increasing profit margins.

Company types that must adopt CRM

Companies that do not have repeat business from customers will not gain much from CRM. And also that have walk-in customers not providing multiple sales and service channels will not benefit much from CRM. Again if maintaining long term relationship with customer is not a priority for the company, it will be wise not to invest in CRM.

Then who benefits? The more the channels to access customers and more the number of touch points with customers, greater is the need for CRM installation. Companies in

• banking
• finance
• insurance
• airlines and hotels
• telecommunications and health care benefit from installing CRM software.

[Reference: Richard Grigonis "Computer Telephony Encyclopedia" Published by CMP Books, New York , 2000]