What is CRM?

Try Creatio CRM for free and learn how customer relationship management can help your business grow.

Defining CRM

СRM stands for Customer Relationship Management and refers to the software that enables businesses to turn prospects into customers, engage and nurture leads, and retain existing clients, covering the whole customer lifecycle. The main goals of using CRM are to improve a company’s relationships with clients, increase loyalty and close rates, and drive profits.

To achieve these goals, CRM stores and processes a large amount of data such as customers’ information, history of interactions, business performance metrics, documents, sales quotes and employees’ tasks, and makes this data easily accessible to all customer-facing departments. This centralization streamlines customer engagement and facilitates collaboration between marketing, sales, customer service, and business development teams.

What Does a CRM do?

Using customer relationship management (CRM) software helps businesses acquire new customers, win their trust and satisfaction, and retain them by organizing their information, such as order history, preferences, or service cases, in a way that assists in building stronger relationships with them.

Moreover, the ability to run omnichannel personalized communication built on data-based insights improves customer satisfaction. CRM software consolidates all customer data, enabling you to learn what the audience wants, and gives you different customer relationship management tools to incorporate this knowledge into all front-office interactions.

Strengthened business productivity and customer satisfaction lead to profit growth. In addition to that, CRM software can save your financial resources by replacing multiple business tools and automating a large piece of routine work.

CRM software optimizes the work of each customer-facing team inside your company.

20%
increase qualified leads*
10%
increase in number of quoted customers*
* According to Creatio Customer Metrics

For sales, it gives the ability to track leads, manage sales pipelines, and analyze and score prospects with the help of AI. Such complete control of your pipeline ultimately increases win rates and leads to more conversions. Moreover, CRM empowers your sales rep to upsell by providing a detailed history of orders and customer info, impacting customer loyalty and ultimately increasing the customer's lifetime value.

Marketers benefit from a CRM system’s customer data analysis and actionable insights, which provide marketing insights and enable them to build automated personalized campaigns. Knowing what your audience wants makes your campaigns more effective and generates more leads for your pipeline.

25%
shorter time customers spend in the funnel*
32%
shorter time-to-first-contact than the industry average*
* According to Creatio Customer Metrics

From a customer service perspective, it allows agents to find client’s information easily, communicate across multiple channels, and manage and track customer support cases, which contributes to a smoother customer experience and increases retention.

How Does CRM Software Work?

Customer Relationship Management software consolidates all customer data from different channels into one platform, organizes it for easy processing, and offers CRM tools to streamline each interaction with a prospect or client.

Here's an example of how a CRM operates. Let's say you have an accounting agency and run a marketing campaign. You create a landing page with a contact form and start running social media posts and ads encouraging prospects in need of accounting services to fill out the form.

Once a prospect fills out a form, their data is added to the CRM. The CRM creates a lead for the prospect and scores it based on the information provided, determining if the lead is ready to make a purchase or requires more nurturing.

Based on that score, the CRM recommends further actions needed to convert the lead into a loyal customer. In the first case, the lead is assigned to a sales representative who gets access to presentation materials and pitches necessary to close the deal via the CRM.

A lead that requires nurturing will receive automated emails showing the value of the offer and moving it further down the pipeline. Once they are ready to purchase, the CRM will flag them for the sales team to follow up. If your nurturing campaign is unsuccessful, the CRM can delete the lead from the funnel after a certain amount of time or return it to the top of the funnel for a new nurturing process/to start a new nurturing cycle.

All the customer data gathered during this process is logged and analyzed for insights to improve your performance. Moreover, this data is shared with the support team to help them solve the customer's issues in the future.

How Does CRM Software Work?

This is only one of the possible use cases for a customer journey through CRM software.

Essential CRM features

A client database with detailed, all-encompassing customer 360-degree profiles, incorporating contact details, business information, current engagement status, activity logs, and AI/ML-driven insights such as predictive scores.

Customer 360 view in CRM

Opportunity and lead management to consolidate leads from various sources, verify and remove duplicate data, facilitate nurturing, and move them through sales cycle stages based on their readiness for conversion.

Campaign management tools to create, execute, analyze, and refine multichannel marketing campaigns.

Data management and segmentation tools to analyze your audience and automatically divide them into target segments.

AI-powered sales and marketing automation tools, such as lead scoring, sales forecasting, trigger actions and webhooks to automate emails and target ads, workflow automation tools for internal processes, such as quote building and approvals.

Service management tools to deliver omnichannel support, handle customer requests, automate service workflows, and enhance agent team productivity.

AI/ML (machine learning) tools to suggest the most relevant next-best offer/next-best action for customer-facing teams.

AI/ML tools in CRM

Interactive and customizable dashboards and reports with analytics that provide insights into business performance for business executives and colleagues.

Content creation tools to build marketing assets such as emails and landing pages.

Task management to distribute tasks between team members and track their execution.

Document management that allows users to track document status and history, create invoices and contracts, and personalize orders with CRM database-stored information.

In addition to that, CRM systems should connect to other applications. Because of its all-encompassing nature, it's important that CRM software is compatible with other business tools you use such as calendars, messaging and email services, video conferencing applications, and so on.

CRM connection to other apllications

How can CRM Improve Your Business?

A CRM system makes your customer-facing teams and internal business processes more efficient by providing one source of truth that is easy to navigate and automating routine workflows. Let's go through the CRM benefits by department.

Sales

With CRM software, businesses can automate long and short sales cycles, including B2C, B2B, or B2B2C, and manage end-to-end sales processes. CRM allows users to manage multiple sales channels in a single workplace (agent desktop), empowered by a 360-degree view of customer data and complete engagement history. Sales professionals can use streamlined sales workflows that guide them through the sales cycle, from generating and nurturing leads to a successful deal closure.

CRM can help identify bottlenecks and enable businesses to track sales rep performance or teams' effectiveness and analyze current sales pipeline and sales plan fulfillment. Artificial Intelligence (AI) and Machine Learning (ML) tools inside CRM enable you to build data-backed scoring models, suggest the next best action/best offer, and assess your sales process effectiveness.

Marketing

With campaign management tools, CRM software enables marketers to design, manage, and optimize complex omnichannel marketing campaigns (email campaigns, banner ads, search ads, social media ads, ABM ads, etc.). in a single interface. Businesses can build targeted customer communications utilizing CRM insights such as a 360-degree customer view and history of interactions.

CRM allows marketers to capture online customer data via web pages and lead forms, analyze intent, and track engagements with human-assisted chats and chatbots. Customer behavior tracking enables marketers to monitor all interactions and utilize AI/ML-powered tools to create personalized offers and product suggestions through appropriate marketing channels. Built-in analytics tools help marketing executives monitor lead generation plans and compare marketing spending with the effectiveness of each marketing channel.

Streamline your marketing, sales, and customer support processes with one-platform CRM. Sign up for a free Creatio trial.

Customer service

CRM systems offer an all-encompassing customer service desktop. You can get a holistic customer view , unify all communication means in a single environment, align traditional and digital helpdesk operations, and build enterprise-grade automated service workflows. AI-powered task automation helps minimize manual tasks and dramatically improve case processing times.

A complete history of customer service communication allows agents to quickly understand a possible problem and find a solution. Flexible case and queue management will enable the allocation of requests from priority customers for quick resolution and fulfill all accepted SLAs. CRM tools allow customer service managers to track the average response and case solution time, the number of cases each operator handles, the current customer satisfaction score, and much more.

Operations

Utilizing analytics, operations managers can identify patterns and trends to create proactive business strategies. A CRM system helps improve the visibility of teams' and individuals' KPIs, easily spot roadblocks, manage projects, and create workflow templates based on tried-and-proved operational strategies.

Accelerate your operation with out-of-the-box apps, connectors, and templates available at your fingertips. For example, help your service with a chatbot or help your sales team with AI integrations for the next best offer and marketing team with email templates or landing page builders. Also, you can use ready-to-use workflow templates for different industry solutions.

Business owners

A CRM system allows the business owner to create customized dashboards that show the overall state of the business in a few clicks - revenue, sales funnel, number of opportunities, and the dynamics of new deals. It lets the CEO quickly assess vital business indicators and identify important channels that drive revenue growth - affiliate sales, marketing activities, brand development, partner engagement, event participation, etc. This data ensures the right decisions and helps plan further growth investments. Analytics also help identify the least effective channels to adjust your growth strategy.

As for the productivity of teams within the company, CRM allows business owners to quickly set up analytics on the fulfillment of KPIs of each department - sales plan and marketing lead generation plan fulfillments, and level of customer satisfaction for current service to inform management decisions for the best efficiency.

CRM industry solutions

To assist industry-specific processes and workflows, CRMs provide pre-built automation and configurations for various industries. Creatio offers 14 industry-specific customizations to expedite setup and produce quicker ROI.

FAQ

What are the 3 types of CRM?

The 3 types of CRM are collaborative (connects different departments with a single source of truth to align their activities), operational (offers flexible tools to create, monitor, and optimize customer-facing business processes), and analytical (emphasizes reporting capabilities and AI/ML-powered predictive analytics to clarify customer-facing activities to managers and executives).

What is the price of CRM?

The cost of the CRM products is estimated per user/month and depends on many factors such as functionality, the type of system deployment (cloud or on-premise), level of customization, etc. Creatio CRM starts from $40 per user/month.

What is no-code CRM

A no-code CRM gives you complete freedom over your CRM automation. No-code technology leverages visual design tools (e.g., drag and drop) to enable users to build customer apps, configure integrations with other sales, marketing, and service solutions (e.g., telephony solutions, ABM platforms, conversational platforms, chatbots), and automate CRM, operational and vertical workflows without the need to code.

How to choose the right CRM for my business?

The best place to start is by requesting a demo tailored to your specific business needs. The basic requirements for any CRM include user-friendliness and functionality, offering interfaces that are easy to use and can be customized without coding. Integration capabilities with other services and apps are crucial, as is scalability. Your chosen CRM should be able to handle a growing client database effortlessly and accommodate the addition of new users or teams at any time.

How do I start using CRM?

Start with importing existing customer data and contacts. Then you can customize data fields and dashboards for a convenient view. Add tasks, files, tags, notes, and other business information to the CRM. Then configure automated analytics and workflows for the tasks that don’t require human involvement. Once you’re done with these preparations, you can create marketing campaigns and operate your sales funnel. Try CRM Creatio for free to explore this process.
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