Customer relationship management (CRM) is a strategy that can help businesses to build long-lasting relationships with their customers and increase their profits through the right management system and the application of customer-focused strategies.
CRM, if practiced properly might lead to cross-selling and up selling of products and services. Cross-selling means selling the right product to the right customer. One other relevant and important attribute of CRM is its ability to help in the ego-mending of customers. This, if practiced efficiently, soothes the customer's negative emotions he could have, due to the non-attainment of his expectations regarding the product or the service. The adoption of CRM in the hospitality industry has been impeded by a number of factors. These include the persistently fragmented nature of the industry, the disparate, proprietary and relatively immature nature of IT systems, and the additional complexity associated with managing a perishable product that is sold through a variety of distribution channels. However, more rapid progress is being made due in part to the continued consolidation between hospitality companies and hospitality IT vendors.
CRM software helps businesses manage their customer relations in a better way and streamlining the organization-wide sales, marketing, customer support, and inventory management functions in a single system.