Apart from the various benefits of CRM discussed by me on this website and my other website www.customermath.com, there are various other benefits of implementing CRM which are discussed below:

Reduction in errors

CRM solutions also reduce errors because of the following:

(a) Data is entered at the data generation source.

(b) There is no need to enter and/or transfer data again and again in different databases. Once entered, the data is available online to every one in the organization.

There is a downside also. If data is entered incorrectly the first time, then incorrect data will be available to everyone in the organization.

        Increases innovation capability

Timely and accurate customer insight also improves a company's product innovation capability. Customer insight enables companies to gauge the future more accu­rately. Companies can use insights gained by interaction across channels in diverse tasks like - Product & Service Feedback, Customer Research, Understanding new and different uses for a product or service etc.

Predicting future buying behaviour

Millions of dollars are being spent on building databases that enable companies to come up with a detailed profile of their customers and find out what it takes to win them over. Now database marketers in every industry are going one step further and predicting future buying behavior.

Data mining combined with predictive modeling and neural-network technology is helping marketers gain a keener insight into customer behavior. One can tell which customers are likely to stay true to one's brand and which customer segments are liable to switch over to something else.

Neural-network technology makes intelligent surmises about what kind of customers are likely to buy specific products and also identifies customers most at risk of switching to a competitor. The purpose of neural­ network software is to sift through data for patterns that predict behaviour.

Enhanced discrete customer interaction at low cost

The convergence of telecom and information technology has made it possible for enhanced one-on-one customer interaction at low cost by the company with its customers located worldwide. Most companies practicing CRM set up call centers which are able to provide customized advice and services to individual customers 24 hours a day, seven days a week cost effectively.

        Enhanced organization memory