What Is CRM and Why Does My Company Need One?

January 25, 2024 crm

Short for Customer Relationship Management, CRM is an umbrella term for all the technologies, marketing/sale strategies, and more used by companies to track and acquire customers in order to close deals faster.

A CRM tool unites the company's user-based interactions under a centralized, data-driven center to improve overall productivity and engagement. By tracking these interactions, the company's in-house business teams have access to and configure their strategies using these statistics.

A CRM tool benefits all sections of the company, from the sales to the marketing, recruiting, development, and customer support teams. Companies can use this service to execute tasks like

  • Send quotes and proposals
  • Detect crucial sales opportunities
  • Store service issues
  • Manage deals
  • Record relevant info about prospective leads

Top Benefits of using a CRM software

One of the major benefits of CRM is that it allows users to centralize customer information. This system tracks and records the movements of all visitors on the company platform. This data is then collected, organized, and used to optimize the brand’s sales/marketing campaigns. In addition, CRM can improve customer retention by allowing businesses to check on campaign engagement, detect trends, and create highly engaging user dashboards.

1. Insightful Reports and Better Lead Retention

Lead retention is one of the primary benefits of using CRM in company operations. According to surveys, 84% of all customers claim that a company’s customer experience is as important as the quality of its products or services - and with their ability to automate and personalize services, a CRM tool can offer just this.

CRM works to improve lead retention by creating personalized experiences for users on the site. For one, you can walk customers through the sales journey, and track it from start to finish.

The system tracks and stores data from potential leads. All client interactions are monitored closely by the system to improve sales potential. This data is accessible to all teams, including marketing and sales, who use it to understand leads. These teams convert this data into workable, personalized programs that prioritize customer engagement.

Plus, the detailed dashboards can help you by offering:

  • Dashboards that visually showcase important data
  • Aid in easier collaboration
  • Ensuring a proactive service for clients and customers
  • Forecast amount of open deals

2. Improved Customer Support

A unified CRM for sales, marketing, and client support can improve a company’s customer support service by leaps and bounds. Relying on multichannel communications, this system collects user data from multiple contact points including social media, web forms, on-site interactions, emails, telephones, and more.

Using this information, a CRM tool can offer fast, personalized solutions to clients seeking help. Filters can be used for data segmentation while simultaneously prioritizing the most important activities (by connecting them to company agents).

Since all user data is stored in a centralized database, users can retract data from different teams to solve issues with sales, returns, or more.

3. Efficient Communication and Coordination

Effective communication is key to maintaining and nurturing customer relationships. For many businesses, the challenge lies in coordinating these efforts across different teams. A CRM with an integrated email client presents an ideal solution. This feature allows for managing emails directly within the CRM system, ensuring all customer interactions are logged and easily accessible.

The real power of this integration becomes evident in follow-up communications. For instance, after sending a sales proposal, crafting the right follow-up email is crucial. A CRM with an email client can automate and schedule these follow-ups based on customer interactions. For detailed guidance on composing these critical messages, refer to our blog post, "How to Write a Sales Follow-Up Email After Sending a Proposal". This resource provides valuable tips for crafting emails that resonate with clients.

Additionally, the CRM’s email tracking features offer insights into customer engagement, such as which emails are opened and which links are clicked. This data is instrumental in fine-tuning communication strategies, ensuring that follow-ups are timely and relevant, thus increasing the chances of converting proposals into sales.

Uses of CRM

CRM tools are incredibly flexible, and shaped by the software behind them. For big companies, complex CRM systems make managing customer-related tasks faster and more efficient.

Small businesses can also benefit from CRM by adjusting it to their scale and by using a self-hosted CRM to avoid paying monthly costs for their CRM software. This helps them grow quickly. A key feature of CRM for small businesses is automating regular tasks. This frees up teams to focus on their main business activities.

To understand more about why you might choose a self-hosted CRM system, check out our blog post, "6 Reasons to Use a Self-Hosted CRM." This type of CRM offers unique advantages that can be tailored to your business needs.

Sales CRM

Sales and marketing CRM plays a vital role in managing potential customers. The primary goal of sales CRM is to enhance sales by tracking customer data throughout their journey with the company. This process starts from the moment a potential customer shows interest and continues through to the closing of a deal.

By collecting such detailed data, sales CRM enables teams to develop more targeted sales strategies. One of the key features here is improving the customer's buying experience through automation. This includes tracking lead indicators and interest points for individual clients. Such insights are crucial in creating a personalized approach for each customer.

Understanding and managing this flow of customer data is key to pipeline management in sales. For a deeper dive into how this process works and its significance, check out our blog post, "What is Pipeline Management & Why is it Important". This piece will give you a comprehensive understanding of how managing each stage of the customer journey can significantly impact your sales effectiveness.

Support/Service CRM

Customer service integration offering support to relevant teams. This system allows users to create personalized services, helping retrieve integral data from clients. Using surveys, social media feedback, and contextual data, Service CRM can improve customer engagement in real-time.

Service CRM is often associated with the sales and marketing teams as their tasks generally overlap. Examples include dedicated AI chat support, phone, email, and social media contact management.

CRM allows the team to maximize customer engagement and management in customer service. As mentioned, this program is omnichannel, allowing users to access multiple contact points. Service bots for these operations help automate simpler tasks. AI guides customers through the relevant channels while connecting them to customer service agents if necessary.

Marketing CRM

Meanwhile, marketing CRM is built to optimize the outreach of company campaigns. It does this by tracking, reading, and automating customer data - in the process, the most relevant target groups are recognized. Marketing teams then use these statistics to improve their client outreach programs.

Marketing CRM offers the team market insight backed by real-time multichannel support. This tool allows marketing teams to create multi-pronged buyer experiences by configuring data analysis dashboards and tracking tools. These unique adaptations give the company valuable insight into prioritized leads. As a result, firms can adapt and create campaigns targeted at these sections for optimum profit output.

Sometimes, companies also employ cross-sectional CRM to improve collaboration between these teams. Since the sales and marketing departments often work together, this integration allows them to share client-related data.

Field CRM

CRM systems not only enhance service quality but also support efficient field operations. With the integration of technologies like the Internet of Things (IoT), these systems enable businesses to proactively manage system breakdowns and field-related issues. This proactive approach is further enhanced by incorporating outsourced Python development services, which can tailor CRM functionalities to fit specific business needs, ensuring seamless integration with IoT and other advanced features.

By automating tasks such as work order creation and product dispatching, CRM systems streamline field operations. This efficiency is boosted by the automation of scheduling and the tracking of team locations, which are crucial for field service management. Outsourced Python development services play a key role here, offering custom solutions that can further automate and optimize these processes.

Furthermore, CRM systems centralize important contact information, making it easily accessible and ensuring effective communication between field teams. This centralization, combined with custom solutions from Python developers, allows field technicians and workers to save significant time and resources, enabling them to focus more on their core tasks.