What is CRM? 5 Functions that Every Business Should Invest In
The success of a business depends on its relationship with customers. This is a challenging business function. It is difficult to focus on each of your customers individually. In this situation, CRM systems come to the rescue.
CRM has been gaining popularity since its introduction. It shares the workload of the customer relations team. There are various benefits of building a custom CRM. You can also get an advanced one offered by a trustworthy service provider.
Businesses look for affordable CRM that is simple to use and yields the best results. Despite its popularity, people still have some questions about it. This article focuses on the answers to these questions.
What is CRM?
CRM is the technology, tool, or technique for Customer Relationship Management. This is a self-explanatory term. It represents the idea of maintaining good relations with customers.
A simple CRM software provides a solution to achieve this goal. It includes various tools to help businesses manage customers’ data. They can use it to improve their engagement with customers.
A simple CRM solution comprises a database, dashboard, and data analytics tools. The system uses the database and allows the users to process it with easy-to-use tools. Companies can use them to increase their customer engagement. Sales and marketing teams can use these tools to track their performance.
Types of CRM Software
There are three broad types of CRM software. They are briefly defined below.
Collaborative CRM allows companies to create a connected network between different departments. For instance, sales, marketing, and customer service departments connect to a single platform. They can use this platform to get the latest customer data and use it for their daily activities.
Operational CRM systems assist various customer-facing teams. They help in automating and streamlining workflows. The tools focus on making the operations processes smooth and flawless. It aims to improve the performance of business units.
Analytical CRM systems focus on the analysis of customer data. It includes tools based on business intelligence for in-depth data analysis. Campaign pipelines, customizable dashboards, and interactive visuals are part of analytical CRM systems. They are ideal for small and large organizations focusing on reporting.
Why is CRM Important for Business?
In business, customers enjoy a key position. It is important to maintain good relations with them to be profitable. Businesses have to put much effort into generating new customers. Retaining existing customers proves to be even more challenging. For this, they invest in technology, software, and strategies.
CRM provides an effective solution combining all these to work together. A great thing about it is that it facilitates various business functions. It includes sales, marketing, customer service, and business development. It enables better connectivity with customers through interaction and support.
5 CRM Functions Worth Investing for Businesses
CRM systems offer many different functions. The most compelling ones worth investment for businesses are below.
1. Contact Management
One of the prominent features to look for when investing in CRM solutions is contact management. This feature involves grouping and segmenting your customer contacts. It helps you to better interact with them. It lets you track your current and potential customers and their relevant information.
Different business departments can access this information. They can use it according to their needs to meet business objectives. You can record key contact information, including name, address, and contact number.
It may also keep other information such as social media accounts and company details. This helps the sales team when they want to reach out to a lead.
2. Workflow Automation
Automating your workflow can ease the burden. This involves the automatic completion of the sales process. You can determine rules and processes according to your business plan. It helps the system predict and complete the next step in the process.
This helps enhance the productivity of employees. Common automated actions include sending emails, follow-up messages, and completion alerts. This function is helpful for salespeople. They can focus on more important functions that require strategic planning. Automating repetitive tasks saves you time.
3. Sales Forecasting
As the name indicates, it predicts your future sales based on available data. This allows sales executives to determine their future goals and strategies. It also helps them suggest improvements in their current strategy. It simply provides them with a direction to put their efforts.
It is helpful for the sales department and marketing, production, and finance. It impacts the interrelated functions and planning related to product or service sales. It may also help determine and manage your business risk.
4. Lead Management
Another investment-worthy feature of simple CRM software is lead management. If you want to find and retain the most profitable customers for your business, you need this feature. It considers various factors to determine the customers you should follow up with. It helps eliminate excessive workload with no significant outcome. The sales team can focus on the right customers at the right time.
Finding your leads helps you frame an effective action plan. You can segregate dead leads from active ones and customize your plan. You can then transfer them to relevant departments and persons. The software also tracks the activities of the potential customers and their behavior.
5. Reporting and Dashboards
The dashboard shows the result or outcome of your customer relationship management efforts. It is one of the top simple CRM tools and a must-have for your business. It presents the data in the form of customizable visuals. This includes sales performance, revenue, leads, KPIs (Key Performance Indicators), and other figures.
This presents a comprehensive overview of all your activities. Moreover, it allows you to view key statistics and information through visuals. This makes it easy to get real-time updates and performance. You can use it to make crucial data-driven decisions.
Simple CRM has made life easier for businesses and opened new doors for them to grow. You can find plenty of simple CRM systems available in the market. Choose the one that suits your business model the most. Make sure it offers all the features mentioned above.