If you ask technology gurus for a definition of CRM, you will probably get many different answers. Today, CRM systems typically refer to comprehensive software solutions that, in effect, make the customer the epicenter of the business. CRM software systems not only empower companies to manage effective relationships, but they do much more. A CRM software solution enables companies to collect, maintain and manipulate customer-related data by leveraging customer relationships to increase revenue and profitability.

CRM is growing in importance as a valuable competitive tool. However, a successful CRM solution must take many factors into consideration, including a well-defined implementation strategy, the people factor and the need for integration with the incumbent ERP software solution.

In embracing CRM, the following are critical guidelines:

• CRM should be embraced as a competitive tool

• CRM needs to be driven by a customer-centric business strategy and philosophy

• A business needs to take ownership of its customer-centric information
  

• Successful CRM requires an evolutionary approach that focuses on people
  

• CRM must be looked on as an enterprise-wide solution since an integrated approach is a must for CRM to extend beyond the customer into the entire enterprise
  
  
• Employees and suppliers must be incorporated as part of a holistic approach to Relationship Management throughout the Enterprise and Supply Chain
  

• True 360° visibility starts from within and extends externally across customers, vendors and distribution network

If these guidelines are adhered to, the chances of gaining substantial benefits of CRM can be readily realized. The result is a dramatic impact on the business, especially with regard to internal processes, customer satisfaction and company profitability. CRM can provide the 360° visibility necessary to win in this challenging, highly competitive business environment.

See also Selecting the Right ERP System