CRM Strategy for Charm City Mortgage Term Paper

CRM Strategy for Charm City Mortgage - Term Paper Example Effective CRM solutions will be able to develop synergy among the many business processes involved in customer relationships. Through the use of CRM, an organization will be able to maintain its current pool of customers, attract and win new customers an entice former customers back into their business. A CRM system, therefore, becomes an important tool for achieving a good level of customer loyalty and customer retention. CRM is not a single product or set of software applications. Instead, it is a platform or a technological foundation for various related services. The core components of CRM that are central to any CRM initiative are effective customer segmentation, well-defined business processes, integrated multichannel strategy, the right sets of skill and mindsets and the right technology (ORACLE 5). When these components are thoroughly re-groped, they give four core components that are central to a typical CRM structure. These are marketing management, customer support, and sales support. For businesses that have embraced a higher technological support for their business processes such as e-business, e-business infrastructure modules become a fourth core component in their CRM structure. These above-mentioned key components comprise the core functions directly supporting e-commerce staff, customer service, sales, and marketing. There are several ways in which the core components of CRM can be used within Charm City Mortgage to improve customer experience. According to ORACLE (5), the core components of CRM generate improvements to decision-making in all the three major stages of customer relationships. These are customer acquisition, development, and retention. Charm City Mortgage can segment/divide its market into distinct groups of customers sharing the same characteristics. Effective customer segmentation will allow Charm City Mortgage to understand which group of customers are the most profitable.