CRM system is a software that manages the relationship between an organization and its customers. The abbreviation CRM stands for Customer Relationship Management. The main goal of any CRM is to ensure sales increase by optimizing business processes, improving the quality of goods and services, and effectively communicating with customers.
Keep reading to find out more about the CRM system and its benefits.
What is CRM System?
CRM system is the database where the operations of the company are stored and processed. The main goal of CRM system is to develop a harmonious relationship with the customers. If you want to increase your business, the first step is to develop and maintain a good relationship with your customers and it comes through a good CRM system.
In a nutshell, CRM system is an automated system that lets you monitor and control all aspects of your sales. It works with your customers through the constant monitoring of their actions and decisions. For example, if your customer bought a product, then you can access the transaction details and record their online orders for the next sales day.
How Does CRM System Works?
The key to the CRM system is to provide accurate data to the sales and marketing department. A company will buy or sell products and services only if customers are interested in it. For that reason, marketing and sales departments must be responsible for the achievement of sales goals.
The CRM system in place will measure every customer’s activity and track every step he or she takes to buy something. It will also give the best suggestions to improve the products and services, helping the organization get closer to the customers. Another goal of a CRM system is to enhance the customer experience and as explained above, the goal of marketing and sales departments is to generate sales.
The Importance of CRM
First of all, let’s see what the purpose of a CRM system is. It’s a software that manages your customer relationships. It helps you identify problems, match customers with appropriate products and services, and efficiently grow customer databases. What’s more, it also tracks your customers’ statistics, such as brand loyalty and customer retention rate.
And yes, all these are pretty important to your business.
Types of CRM systems
There are various types of CRM systems. The first type includes web-based CRM solutions such as Salesforce, Hubspot and Twitter. Others are mobile-based CRM solutions such as Salesforce’s mobile app or its app called Field Agent. If you’re an expert in marketing automation, you should definitely take a look at Marketo, which is a cloud-based platform that can help you with creating email campaigns, connecting to social networks, and tracking web analytics. If you’re a service-oriented business, you should find out about the benefits of a service-oriented CRM solution such as HubSpot or PowerHub.
Of course the CRM systems are not limited to the list above and you can pick your own based on your needs and requirements.
The Benefits of CRM
CRM system has several advantages. Here are some of them:
- Better Overall Customer Support
By using a CRM system, your customers are provided with a single location to monitor your sales and see a thorough view of your business. In addition to this, the CRM system can make it easier to communicate with them and answer their questions. This means your customers will feel like they are always in contact with you.
- Faster Revenues
According to reports, the CRM system can improve the revenue you are generating at your business by up to 10%. This is done by optimizing business processes, improving the quality of products and services, and ensuring effective communication.
- Real-Time Reports
The CRM system can also improve the reporting of data in your business and you’ll get real-time report of your customers.
- Customer’s satisfaction and loyalty
Customer experience has become one of the most important elements of customer service. CRM systems help you maximize your customer’s happiness and this means, if a customer is happy with your services, he will remain your customer. Thus, you’ll be able to gain new opportunities to earn more business.
A CRM system can help you in many ways. It allows you to send marketing information to your prospects and customers and manage all your finances, while minimizing risks. However, it is vital to keep your CRM system up to date. Always check for any notifications from your CRM system and inform your employees of any update