CRM`s final aim is to help a company make new business relationships and strengthen the existing ones, and it executes this by compiling and analyzing information gathered from the number of different channels such as emails, company's website, social media, phone conversations, live chat or any other points of interaction between the customers and the company.
In everyday business communication, customer relationship management most commonly refers to a CRM system, software that is used to consolidate the aforementioned data and unify it into a single centralized database. The system is also used for recording different interactions with clients, as well as for automating various administrative tasks and enabling the business owner or any supervisor to keep track of the employees’ performance.
Types of Customer Relationship Management Software
After describing what CRM is and what it can do, it might be worth mentioning that CRM systems are typically divided into three types depending on their functions: analytical, collaborative and operational. While most systems do include all three capabilities, usually one or two are their focus points, which is why you have to carefully define what functions you need before actually buying any software.
The primary aim of a good analytical customer relationship management tool is to aggregate a vast amount of information gathered from various sources, combine and analyze the gathered data that can help you plan the most effective strategies and campaigns accordingly.
This type of CRM is the strongest in advancing teamwork and clarity between marketing, service and sales by distributing client data and syncing their actions. It is also characterized by great communication tools, information sharing capabilities and track of activities.
The main purpose of this CRM is to automate and streamline the workflow in customer service, sales and marketing. Systems that have good operational functions usually feature contact management, lead management, as well as sales pipeline and help desk management.
One of the most important functions of CRM software is contact management. Its goal is to enable companies to handle the processes related to managing customer and company profiles with accuracy and efficiency. In other words, this feature helps you gather, store and process client data with ease.
CRM gathers and combines streams of information in the ways that make it easy for the users to view various statistics in a visual and engaging way. This enables you to have a clear perspective on the current behavioral patterns of your customers and trends on the market. Often CRM tools even have real-time data projections, which make reports even more precise.
Usually client relationship software is used by different employees from different departments of a company. CRM system allows every employee or group of employees to have a unique role in the system, and managers can easily set access rights for every system role.
This is the most popular function among many users. Lead scoring and management allow you to score your prospects based on their likeliness to buy something or use a certain service. It provides your staff with the opportunity to work with only sales-ready leads, identify the most effective lead generation channels and analyze conversion rate on every stage.
Client relationship management software can also keep track of various interactions a customer has with the company through any medium, be it the company`s website, email or a phone call. Tracked activities are then stored and listed in chronological order on your client`s profile.
As the name itself says, this feature helps you manage and oversee your campaigns from the campaign designer to the campaign completion. It will also automate workflow and enable marketing agents to reach target audiences in a more efficient way. In the end, it gives you a clear overview of the success of your campaign measured by user-defined parameters.
Of course, the vast information accumulated by your CRM would not be particularly useful if it was not properly processed, and this is where data segmentation comes in. Data segmentation enables the users to divide and organize groups of customers based on various characteristics including age, sex, geographical location, etc. Data segmentation can help you develop personalized approaches for each segment of your database.
In the world of business, time equals money, and unfortunately, a tragic amount of time usually gets wasted on tedious and repetitive tasks. Once again, CRM software is here to save the day. Using automation tools allows you to save a lot of time by automating many repetitive tasks, which will strengthen your efforts and lead to better performance.
CRM software can help you analyze data based on various parameters within the required timeframe. It will give you a perfect ability to identify the gaps in your strategy and find the most appropriate solution on how to improve it. Leading CRM vendors provide the ability to visualize the data, which makes data analysis even more convenient and effective.