What is a Customer Relationship?
Customer Relationship Definition
Customer relationship describes the end-to-end process of a business’s interaction with its customers.
It encompasses the sales, marketing and support departments of an organization.
In its typical form, the customer relationship process includes:
- Acquisition of a customer through sales channels
- Sale of a product or service to the customer
- Providing of after-sales support to the customer
Taken together, these functions help businesses establish a relationship with customers.
Customer Relationship Benefits
There are several benefits to investing in customer relationships.
Companies use several techniques and strategies to manage customer relationships.
For example, they might use marketing communication to send periodic updates to customers and inform them about new products and initiatives.
They can also use customer support channels to resolve technical and conceptual queries from customers about their products.
Some of them are:
- Reducing customer churn, or migration of customers, from the service
- Cost savings in customer acquisition
- Higher customer satisfaction
- Product improvement through customer feedback
Importance of a Good Customer Relationship
A good customer relationship can help build long-term and deep connections between a customer and a brand.
It transforms customers into brand ambassadors.
Such ambassadors not only repurchase items themselves but, also, tell their friends and families about it and convert them into new customers.
Customer Relationship Management (CRM) Software
Customer relationship management software automates and simplifies the process of managing customer relationships.
The software tracks and analyzes sales, customers, marketing efforts and customer service issues.
It also stores valuable information on customers to enable personalization of service and streamlines the sending and tailoring of marketing efforts.