CRM, an acronym for Customer Relationship Management, is a term that refers to the processes and strategies that a company puts in place to manage its relationships with customers, as well as the tools and systems it uses to maintain its user base. And drive sales.
What is a CRM?
CRM, in English for “Customer Relationship Management.” Its technological meaning refers to the software that records the information of all the people involved in the company’s processes, whether customers, users, employees, or suppliers. CRM systems facilitate the treatment of data obtained through different sources that will serve as the basis for correct decision-making.
Another definition is related to the CRM strategy. It encompasses the set of actions and processes that a business establishes to attract prospects and satisfy portfolio customers.
What Is A CRM For (Infographic)
At the most basic level, CRM software joins customer details and documents into a single database. Thus, users will be able to access and manage it more easily.
Over time, many features make them more useful. Some of these features include recording customer interactions via email, phone, social media, or other channels. Workflow automation such as tasks, calendars, and alerts; o Providing administrators with tracking performance and productivity based on information recorded in the system.
Benefits Of A CRM
Sales Force Automation – CRM tracks customer interactions. It also automates some sales cycle business functions essential for lead tracking. Location-Based Technology or Location-Based Services. Some CRM systems include technology that can create geo-targeted marketing campaigns and track sales within a specific location. Workflow Automation – CRM systems help companies streamline processes by supporting more particular functions. For example, sales reps can monitor and analyze prospect data on one screen. HR Management in CRM. Its systems help track employee information, allowing the HR department to manage the company’s staff. Analytics – Analyze and create data. Effective marketing campaigns that increase customer satisfaction.
What is an Operational, Analytical, And Collaborative CRM?
If we look at its functionalities and objectives, we can say that there are three types of CRM on the market. So before implementing one in your company, it is worth knowing what they offer and how they differ.
What are the three types of CRM? Operational, Analytical, and Collaborative.
Operational
CRM Operational streamlines company procedures through sales, marketing, and service automation. The main goal is to generate leads, convert them into contacts, record all the necessary details, and provide service throughout the customer lifecycle.
Analytical
An analytical CRM collaborates with managers, marketing, sales, and support, establishing the best way to serve customers. The primary function of this type of CRM is data analysis. Analyze customer data from different sources to get a reliable picture of the state of the business. It enables management to make better decisions, marketing to understand the effectiveness of campaigns, sales to increase profits, and support staff to improve customer service and build a strong relationship with the customer.
Collaborative
Collaborative CRM shares customer information with various company areas. Such as the sales, marketing, technical, and support departments. The compiles the work of the different business units to achieve an objective: use all the information to improve the quality of customer service, build loyalty and attract new customers to increase sales.
What Do Local And Cloud CRM Means
If we look at the way of installation, we find that CRM systems are installed locally or in the cloud. Although until recently, installations were mainly carried out on company servers, in recent years, the almost unanimous trend has been to hire cloud services.
What Is A Local CRM
This system leaves the control of administration, security, and maintenance of the database and information in the hands of the software user. A lifetime license is purchased instead of paying annual or monthly subscriptions to a CRM provider. The solution installs on the company’s servers, and the company assumes the cost of any update. Integration with other programs is often complex. A installed locally is a recommended option for companies with particular needs.
What is a cloud-based CRM
In a cloud-based CRM, also known as SaaS (software as a service), information keeps on a remote, external network that employees can access anytime, anywhere, with an Internet connection. It does not entail implementation or maintenance costs. There is also no initial outlay to make, as in the case of local installation. Data security is critical for businesses using cloud-based systems since they do not physically control their storage.
What Is An Open Source And A Private CRM?
A proprietary CRM presents any technological or legal restriction that prevents its modification or distribution without the prior authorization of its owner. In addition, the source code must be one name by a company exploiting it commercially. Some examples are Sap CRM, Salesforce, SugarCRM, etc.
An Open Source CRM system makes the source code available to users, allowing them to make changes at no cost to the company using the system. Open source systems also allow adding and customizing data logging on social media channels. Open-source platforms like OroCRM, SuiteCRM, or SugarCRM are good alternatives to paid solutions.
Adopting these deployment methods depends on business needs, resources, and goals, each with different associated costs.
In our blog, you can read several in-depth analyzes of the most used systems today :
- CRM solutions in the cloud
- CRMs used in the real estate sector
Examples Of The Use
We will tell you some examples of CRM in practice so that you better understand .
Contact Center
Traditionally, data entry is in a system. The responsibility of sales and marketing departments and call center agents. Sales and marketing teams collect leads and update the system with customer information. However, their part, customer service centers collect data and review customer history records through calls received by the service and technical support interactions.
Social CRM
They create business opportunities through platforms like Facebook, Twitter, and LinkedIn. Social networks represent an open forum for customers to share experiences with a brand, whether issuing complaints or promoting products.
To add value to customer interactions, companies use various Social tools. They monitor conversations on social networks, from specific mentions of a brand to the keywords used, and thus determine their target audience and the social platforms they use.
Companies focus on capturing customer sentiments, such as how likely they are to recommend products and overall satisfaction, to develop marketing and service strategies. Therefore, companies try to cross the data obtained through Social CRM with others collected by the sales or marketing sector to get a single client vision.
Mobile CRM Systems
Applications created for smartphones and tablets have become necessary for business and marketing professionals. They allow them to access customer details and perform tasks in their offices when they are not sensible. For example, mobile applications take advantage of features unique to mobiles, such as GPS and voice realization capabilities, to give sales and marketing employees access to customer information from anywhere.
CRM Challenges
Any advance in CRM technology is useless if only used as a database. The data obtained connect, distributed, and organized so that users can easily access the necessary information. Moreover, Companies will not have a complete picture of the customer if the information is disorganized in a single interface. Challenges also arise when systems contain duplicate customers or outdated information. These issues can lead to a reduced quality of customer experience due to long wait times during phone calls, inadequate case management through the help desk, etc.
Conclusion
CRM, an acronym for Customer Relationship Management, is a term that refers to the processes and strategies that a company puts in place to manage its relationships with customers, as well as the tools and systems it uses to maintain its user base. CRM, in English for “Customer Relationship Management.” Its technological meaning refers to the software that records the information of all the people involved in the company’s processes, whether customers, users, employees, or suppliers. An analytical collaborates with managers, marketing, sales, and support, establishing the best way to serve customers.
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