A comprehensive beginner's guide to the concept of customer relationship management (CRM)
Customer Relationship Management is a technology that helps enhance and maintain customer relationships. It provides a centralized platform for customer data for easy accessibility and collaboration between departments.
It is remarkable that no matter the type and size of a business, a CRM application can bring the best to the table. It is mainly used to execute four key functions, such as the below.
The evolution of CRM has tremendously helped ease key business activities to a great extent. A popular tool in the business world, it would be unusual if you have never heard of a CRM, ever. And for those who want a better understanding, have a seat.
Contrary to the simplicity of the acronym CRM, it plays a major role in the success of a business. Customer Relationship Management, or CRM, combines strategies and technology to maintain flourishing customer relationships and support business growth. It provides a single platform or application to manage all your customer-related data, which normally requires several apps.
Lasting customer relationships are not built instantly, but with time and effort, the quality of service can be improved to foster positive relationships.
Timely response, undivided attention, and understanding are beneficial to develop and nurture the bond with customers.
Happy customers are the key to a thriving business. Their positive reviews enhance brand loyalty. This further expands the customer base.
The benefits of CRM are immense such that it is suitable for businesses of all sizes and types.
CRM technology helps organize the scattered customer data, which helps in easy accessibility and customized services. It improves the quality of customer service and supports cost-effective business growth.
The automation component of CRM enables streamlined processes and promotes collaboration. CRMs provide data-driven insights for targeted marketing and informed decisions.
CRM application integrates with other enterprise systems for efficient business operations. For large businesses, CRMs helps enhance workflow and boost customer retention.
As mentioned earlier, the implementation of CRM technology takes customer experience to a whole new level. Its wide range of components revolutionizes interactions with customers. Let’s break it down. As the organization grows, the business needs also change accordingly. Work efficiency may get hindered, which can impact the quality of customer service.
An automated CRM system well-equips the team for effective client engagement as well as manage customer interactions. CRM application serves as an all-inclusive platform for effective management of all things business.
increase in deal conversion
increase in productivity
increase in customer retention
decrease in labor costs
of ROI for every $1 spent
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With a plethora of benefits, CRM comes in various types:
Read the full guide on types of CRM and how to choose the right one
The main focus of operational CRM is the automation of sales, marketing, and customer support. This is meant to provide businesses with accurate data to deliver high-quality services promptly.
Since CRM supports data integration, information can be accessed irrespective of the team, enhancing coordination. communication improves between departments as well as departments and customers.
Just as the term suggests, analytical CRM revolves around studying customer behavior and identifying patterns. As a result, companies can implement decisions accordingly.
There are various CRM technology available based on business needs. Although each technology comes with its own benefits, cloud-based CRM tools have become increasingly popular.
Cloud-based CRM works on the principle of storing data on the vendor’s servers on an external network.
The best things about Cloud CRM software are:
On-premise CRM software is hosted on internal business servers.
The notable things about On-Premise CRM software are:
Simply put, CRM systems unify customer information at a centralized place so that businesses can leverage technology to create valuable relationships. Some critical components of advanced CRM software include:
The one-view window of CRM technology prevents the need for multiple platforms to manage leads. CRM tool provides centralized data for easy accessibility and timely response to customers.
CRM tool automates repetitive marketing tasks such as analytics, campaigns, lead generation, etc. That means faster outputs and more time for employees to focus on other important tasks.
The CRM application streamlines workflow, which simplifies operations and elevates productivity. Implementation of the right CRM tool can effectively support workflow management.
Besides collecting customer data, CRM technology analyzes it deeply to generate insights into customer behavior and satisfaction. It also creates reports and dashboards to help understand sales performance.
CRM promotes effective streamlining of the sales process via its automation tools. Some key features are tracking opportunities, lead management, sales pipeline management, forecasting, etc.
Given the technological advancements these days, CRM application is available in various types to cater to the diverse needs of businesses.
The primary aim of a Sales CRM is to sell products and services. This type of CRM emphasizes monitoring the sales cycle and triggers sales with its unique features.
This CRM tool focuses on incorporating sales, marketing, and customer service. It utilizes automation to simplify and effectively manage everyday tasks via a single platform.
It provides unified access to customer data in real-time, improving work efficiency and customer service quality.
Lead conversion and brand loyalty are the key functions of Inbound CRM. The term refers to when the customer contacts the business first and helps manage various pipeline stages.