Customer Service Skills Knowledge Base and Frequently Asked Questions
What is Customer Relationship Management Software?
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Customer relationship management software has come to refer to software, usually large in scope, that is used to manage many aspects connected with the customer experience. CRM software can cost hundreds of thousands of dollars and include a huge number of features including tracking customer behavior and purchases, inventory control, POS, marketing processes and customer contacts.
However, customer relationship management software can also refer to less grandious computer based processes. For example, a simple spreadsheet can be used to manage customer relationships, as can a simple computer based contact manager.
It's important to understand that the technology used to manage customer relations is NOT the same as managing customer relationships. It's possible for a small business, perhaps a one person shop, to manage customer relationships using paper files or even small recipe cards.
It's also important to note that a technological solution (ie. an expensive customer relationship management suite) doesn't necessarily improve customer service. It can provide data and information and some functionality, but ultimately customer service has a strong human component.
Robert Bacal is the author of two books on customer service: Perfect Phrases for Customer Service: Hundreds of Tools, Techniques, and Scripts for Handling Any Situation, and Defusing Hostile Customers Workbook. Most of the questions and answers in the Customer Service Knowledgebase (which you are reading now) is based on the material in these books.