CRM (Customer Relationship Management) Definition, Benefits & Key Features

As a business owner, you may have heard of CRM, which is an acronym for Customer Relationship Management. From the name, you can certainly judge that this term is related to customer management. But, do you really understand what CRM is and its benefits for your company?

The following is a complete guide for those of you who want to know more about CRM or are considering implementing a CRM system in your business.

What is CRM?

Customer Relationship Management or CRM is any tool, strategy or process that helps businesses better manage and access customer data. At first CRM relied on handwriting and Rolodex.

But with the development of digital technology, these tools eventually transformed into databases stored on individual computers, and then the definition evolved into something much more complex.

Now, Customer Relationship Management is concerned with the overall business strategy. The CRM system acts as a repository that integrates sales, marketing, and customer support activities, and simplifies processes, strategies, and sales force management in one system.

What Are the Uses of CRM for Your Company?

Have you ever wondered why there are so many companies investing in CRM systems? Now, this software has even become the second largest enterprise software market after ERP systems. Well, here are some reasons why Customer Relationship Management is software that is increasingly popular among businesses of all sizes.

Improve Relationships with Prospects and Customers

All complete prospect and customer information is stored in one repository so you can easily track it whenever needed. Such detailed information can help you understand their needs better so that you can provide the best service for them.

Reducing Spreadsheet Usage

CRM helps you to automate a variety of time-consuming manual tasks such as recording lead or customer data using spreadsheets . You can also automatically create new leads from the signup form and send them a thank you or welcome email .

CRM Makes it Easy to Review Salesforce Performance

Through CRM, you can easily monitor the performance of your sales team. You can find out the status of each lead handled by each salesperson, their interaction history with the prospect, what actions they took to convert the lead into a customer, and more.

CRM Simplifies Sales Funnel

Customer Relationship Management allows you to get a clearer visualization of your sales funnel through the stages and sub-steps that you create. This makes it easier for you to identify high potential prospects and prioritize your dealings with them.

Personalized Email Marketing

Personalization is still one of the most effective marketing methods. With CRM, you can create and send emails containing promotions, newsletters , and special offers tailored to the preferences of each of your clients or customers.

Strengthening Business Through Team Collaboration

When your team works independently, this can be an obstacle for your company to grow. CRM is software that allows sales, marketing, and customer support teams to collaborate with each other to manage shared data through a single system.

CRM Functions to Increase Company Revenue

Because you have a holistic view of your prospects and customers at all times, you can up-sell and cross-sell at the right time, with a higher success rate. You can also increase revenue through improving service and product quality that are tailored to the needs of your customers.

Also read related articles: What is ERP Software and What Are the Benefits for Your Business?

Who Needs a CRM?

CRM systems can be easily customized to meet the specific needs of every type and size of business to enhance their sales, marketing and customer support efforts.

Business to Business (B2B)

From managing client information to keeping up with transactions, payments and business reports, B2B companies can do the whole process better with a CRM system. This system acts as a common platform that can help B2B companies to bring partners, vendors and other stakeholders together.

Business to Consumer (B2C)

With shorter customer life cycles , B2C companies generally need a faster but still complete customer management solution. Features in a CRM system such as sales funnel management, marketing automation, and phone history logging can help B2C companies reach their customers more easily.

Small & Medium Enterprises (SMEs)

CRM systems are not only suitable for large companies, but also small and medium enterprises or SMEs. Cloud-based solutions are the most appropriate option for small and medium-sized businesses because of their affordable prices and very simple implementation methods. CRM helps SMEs to be on par with the bigger players in their industry.

Large-Scale Companies (Enterprise)

CRM is software that can help large companies increase efficiency by simplifying complex tasks. All customer and sales data from multiple geographic locations can be centralized in one system. Companies can also integrate their CRM software with other systems they use; such as accounting and marketing automation for example.

CRM Key Features

Not all CRM systems have the same features. Some CRM systems provide reports with rigid templates , while others allow users to configure reports according to their preferences. The following are some of the main features of a sophisticated CRM system.

Lead Management

With CRM, you can view any information related to a lead. Such as for example client demographics, meeting history, need for your product or service, and others. You can filter lead data based on various categories in the system.

Email Marketing

This feature allows you to customize your campaign using the various templates available in the system (some even allow you to create your own template from scratch) and send it to prospects or customers based on their segmentation. You can choose to use mass mailing or personalize your marketing campaign .

Sales Channel Management

This feature makes it easy for you to track lead status (warm, hot, or cold ) and find your best opportunities through a single screen. The sophisticated system allows you to use drag and drop to move leads from one stage to another.

Sales Force Management

Through this feature, you can always monitor the performance of your sales team; how successful their sales were, how many leads they converted into clients or customers, how they interacted with clients, and much more. This helps you know which salespeople are already performing well and which ones need improvement.

In-depth Report

This is the most important part of CRM, because it is the tool that helps you in making decisions for your business. Through in-depth analytical reports, company decisions that were once based on gut feelings are now more data-driven . This feature allows you to create different types of reports — successful transactions this month versus last month, successful leads converted this quarter versus last quarter, and so on.

Conclusion

No matter the type and size, every business owner should be able to ensure that all their business operations run in one unified direction. This is important to help them acquire new customers and retain them. At the same time, it can save time, effort, and reduce company operational costs.

When other businesses are vying to attract customers and increase their sales, then you must use more sophisticated strategies to outperform them. Therefore, it is important for you to consider implementing a CRM system in your company.

If you still have questions about our system or can’t determine whether your company really needs it, don’t hesitate to ask the right automated solution provider.


Trending in Management

Leave a Comment