CRM is a business philosophy that touches upon many independent parts of the organization. CRM is a concept that requires a new customer-centric business model, which must be supported by a set of applications integrating the front and back office processes. These coordinated applications ensure a more satisfactory customer experience, which has a direct link to a more profitable organization. There is no doubt that a corporation's installed base is one of its greatest assets and therefore must be carefully managed. Cultivating and nourishing customers is now recognized as being essential for further success with both current customers and new prospects alike.
Statistics show that a new sale is five times more costly than a sale to an existing customer.
Investing in existing customers to provide increased satisfaction has a direct impact on customer loyalty and therefore on the bottom line. CRM addresses the Sales, Marketing, and Service activities of the organization. These customer touch-points must be managed to provide an enhanced customer relationship. As e-commerce becomes a major business channel, coordination with CRM is an imperative. The e-commerce strategy of an enterprise must be in synch with the CRM business model to ensure a consistent customer experience.