importance of crm

Importance of CRM to the B2B sector[edit]

Many of the characteristics in the B2B market suggest that CRM is a factor which influences the business. CRM has special characteristics in the B2B market.

Consider “Critical mass (software engineering)”. Due to customer relationship, a network can be established and extended. Extension causes the network not to increase benefits linearly, but in an exponential way. As new members can contact by any existing member the benefit of a network of 200 people is much more effective than one with 100. Hence, these networks can be used to increase the amount of available information for each company. This may lead to more information about a customer which can be used to make the way of handling the customer easier in the future. The history of previous sales from this customer may be a great relief. Moreover it is possible to establish technical cooperation a bigger network is more likely to provide special services.

These services include, among others “systems integration, hosting, financial services such as payment processing, receivables management, credit analysis and logistics services”. Services of this kind encourage companies to join the B2B network by using CRM. Furthermore, B2B hubs have another advantage as they can substitute external personal if members of the network liaise. This may not only avoid extra costs for arrangement of a new contract but is also likely to accelerate the speed of this arrangement as they are in the same network and already possess information about their negotiating partner. Ultimately, special knowledge is required for B2B markets. As B2B customers are generally more rational customers than B2Cs, a person or a team with special knowledge to each customer or industry may enhance the sales in this area.