What is CRM software? Definition and Benefits of CRM

Authored by Partho Parekh  | Informative, Learnings and Discussions

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This post will help you in knowing what is CRM software, definition and benefits of CRM and how it can reshape your business in 2020!

What is CRM?

CRM means to be able to access all the information from different departments of the company in order to cater to the needs of every single customer for building a long-lasting relationship between the company and each of its customers. 

CRM software helps the company to do that in real-time by combining business strategies, processes, and all the provided information efficiently and use them effectively.

What is CRM Software and what does it stand for?

CRM stands for “Customer Relationship Management” and as the name suggests, it is the ability to generate, retain, acquire, and nurture customers that matter to us through strategic planning and technology.

If you google CRM, it will begin with a definition of CRM and start telling you what CRM stands for but mostly it will talk about Customer Relationship Management software. It would be less annoying if they could all not give a thousand definitions of Customer Relationship Management that sound different but mean the same.

Let me make it simple for you. CRM is the skill and CRM software stands for the technology tool/s required to do the job.

But do not let the statement fool you. The CRM is less annoying than the number of people you would have to hire to get the job done manually and it will provide you with apparently everything that you would require including the things that you never thought you would!

CRM software helps you through every step of customer interaction in a smooth and efficient way that ensures an increase in overall customer satisfaction which results in company profit and sustainability.

The software keeps track of customer data from multiple channels such as their complete purchase history, their personal information, and even their purchasing history for understanding customer behavior patterns.

Who can benefit from CRM software?

The best bit about a CRM software is that every business that has a customer or needs one can benefit from it because it not only helps businesses in lead generation, sales, and customer service but also in recruiting, managing, marketing, and developing their businesses. After all, who doesn’t need help in Customer Relationship Management!

Go for a less annoying CRM software and you are good to go. I mean, that’s the primary stand when it comes to choosing the right CRM software. CRM technology should be easy to use because it’s to save time! 

“What about my company size though?”

Well, what about it? CRM software can handle businesses of any side and that’s because its primary role is to store all customer information in one place, be it recording their service issues or identifying sales opportunities or even running and managing marketing campaigns. CRMs features are limitless and so is its capacity.

How does CRM software work?

CRM software helps you to keep track of all your customers individually by keeping a personal record of all their interactions with your company via phone calls, emails, contact forms, and every other channel that you use to interact with your customers.

CRM software is the backbone of your sales and marketing department because it comes with a complete set of tools required to manage the sales and marketing funnel in its entirety. This includes lead qualification, opportunity management, forecasting, email campaigns, followups, and every other process until deal closure.

CRM software also provides customer service teams with tools to manage customer requests and automate service operations through pre-defined processes for customer care excellence.

CRM software automates routine processes and tracks and measures the company’s performance and productivity through smart and helpful KPIs on the dashboard that lets you keep an eye on your company’s progress, enabling you to take prompt actions from time to time. 

In fact, you can pre-schedule activities like sending emails and initiating phone calls on your CRM software and it will keep reminding you of the upcoming tasks that need to be completed. Do not forget that your software records everything in order for you to access them later. All thanks to the information technology!

But why is Customer Relationship Management so important?

Customers are people and people do not like to be abandoned. To take care of your customers on a timely basis, you would need to nurture them, pamper them at times, and always help them when in need.

The most successful companies are those that have the best customer relationship. This is why it is of utmost importance to manage your relationship with your customers. They and not you are the soul of your company. You are the brain that runs it. 

CRM software on the other hand is a special system with one primary purpose i.e. to help you improve your relationships with clients by providing smart tools to effectively develop a successful strategy. 

To cut short, CRM software accelerates crucial business operations, such as marketing, services, and sales, in order to boost customer experience and loyalty from initial contact to repeat purchases.

What is the use of CRM software in marketing?

In marketing, CRM software can be used for efficient lead management such as demand generation, lead nurturing, final hand-off, and sales. 

With CRM, your sales team will only have to focus on qualified and sales-ready leads.

What is the use of CRM software in sales?

In sales, CRM software can be used to deliver end-to-end sales processes that will help the sales team in managing the complete customer journey from lead to order, and continued account maintenance as well.

What are the types of CRM?

Companies choose their system based on their business needs and objectives. 

On-premise CRM

The pandemic has almost forced the extinction of on-premise CRM software. The limitations of on-premise CRM software kept on increasing and after the coronavirus forced everyone to shift their businesses and everything to the comfort of their homes, the cloud has gained so much prominence because on-premise means no remote work. Their licenses already had to be purchased as well.

The only reason why a lot of companies were still ready to choose an on-premise CRM over a cloud-based one was for better security. Not that they were hack-proof but had to be accessed from the inside to do so and companies think that it’s better that way than to live in the fear of someone with no identity or location hacking into their confidential database.

Even with that, securing an on-premise CRM isn’t easy and can take up resources as well as maintenance from time to time.

Cloud-based CRM

Instead, a cloud-based CRM software which is also known as software-as-a-service (SaaS) or on-demand CRM, stores data on cloud-based servers.

With more and more companies opting for cloud-based solutions due to them being accessible from anywhere in the world until you have access to the internet, the cloud-based solutions and technology have become the unsung hero of the COVID times.

Cloud-based CRM software provides you with access to the database all the time, no matter where you are and most importantly, the vendor takes complete responsibility for the seamless operation of the system and provides all the necessary system updates and support.

Cloud-based CRM software is highly scalable too, letting you expand your business easily when you intend to functionally scale up your business requirements.

In recent years, cloud-based systems and technology have become even more secure than on-premise systems. All you have to do is to hire ethical hackers or pen testers with knowledge of technology and the right tools needed for the penetration testing and you are good to go! The reports they provide will help you secure your firewall to suit your needs and secure your business interests. 

My advice would be to go for a cloud-based CRM software since the only requirement here is a good internet connection and an affordable monthly or annual fee.

Top 10 benefits of CRM software for business

A centralized database

One common database for all your sales organizations is no more a dream now. 

CRM Software will maintain all its databases in one place and eliminates any difference in information otherwise created when using written or different databases for different organizations within the company.

This helps teams from different departments in accessing and managing all the information easily via a shared location.

CRMs help sales teams avoid spending time digging through files and records to find the information they need about prospects to follow up and close deals. 

Organized contact data

CRMs allow your sales team to easily keep track of every customer/client (and their related data), no matter in whichever stage they are.

In fact, they will be able to monitor if a lead/prospect visited your company website, downloaded content from the site, or spoke with another member of your sales team already.

Teams can also feed in their calls or email interactions with their contacts and leads that can be accessed with ease at any point in time.

Improved customer service

CRM helps you create a profile of every lead, customer, person or organization you or your teams have interacted with.

CRM software remembers these profiles and starts gathering information related to them like purchase records and previous communications with contacts across different channels (social media, chat, email, etc.). 

This makes sure that customers do not have to repeat their story over and over to you every time they talk to anyone within your organization and you’ll be able to address their issues in a jiffy through this technology. A happy customer is a loyal customer.

Increase in Customer Retention

The more a company’s retention and churn rates are, the better the company’s future will be. 

A higher number of retention only comes when our clients/customers are extremely happy with what we have provided so far and hope to be with us on our journey. 

CRM tools like sentiment analysis, automated ticketing, and customer support and customer service automation can dramatically improve your company’s retention rate by letting human agents defuse problems through accurate and real-time data. 

These analytical tools can quite accurately show you when a churn happens and why by processing the gathered customer data so that you can help them out in the most efficient way when they need it the most.

Increase in Sales

Every company wishes its sales to improve and improved sales means an increase in income.

CRM software helps you streamline and improve the sales process, build a sales pipeline, automate tasks, and analyze your sales data. 

CRM software database already has all your customer-facing voice, chat, social media, and email touchpoints ready for you to create a proven and repeatable sales process that can be adapted easily by teams to come.

Smarter Analytics

CRM software has all the tools to provide you with better and smarter analytics that are both intelligible and relevant to your business needs. 

CRM software streamlines all your sales data, financial data, and marketing data with data warehousing and data mining to create visible metrics that are easily understandable. 

What do you get out of it? Customer acquisition, customer retention, and better data management. This is technology at its best!

Better Efficiency

If your CRM software has already simplified all the above processes and problems, then it will automatically pave way for a better workflow, and easier collaboration between team members, and better project management. 

The software will have already automated most of the menial and repetitive works within your business organization, providing more time for the cognitive tasks you actually hired your employees for. 

Smart dashboards and analytics will help you gain insights into your work and optimize all kinds of business processes.

Better knowledge sharing

Miscommunication and lack of information transfer are two major pains within an organization. 

When new employees take time to self-learn things that other team members already know or work on redundant tasks, the company is losing a lot of hours per week and in businesses hours are proportional to money. 

CRM software will have tools to streamline your teams by letting you build a knowledge base for them and establish best practice workflows that will end up creating a healthy work culture within your company.

Complete transparency

CRM software creates a space for transparency in your organization by assigning tasks, showing work, and outlining exactly who is who and who is doing what. 

Even if you are concerned about sales, you can make use of performance tracking for individual sales agents. 

CRM software allows everyone in your organization to gain visibility on your business processes, fostering more mutual understanding, trust, and self-participation. 

Scalability

Cloud-based CRM software can help you scale up your business anytime and quickly as well. 

You won’t have to hire dedicated resources to scale your business or hire more employees to do the job because now you have a CRM!

Grow your business better with CRM software

Statistics say that over 91% of businesses with more than 11 employees are already using CRM software.

You do not have to spend money on building a CRM software for your business. It’s a readymade technology. All you need to do is to consult with Archisys, i.e us (the initial consultation is completely free of charge) and we will help you in finalizing on a CRM software that best suits your business needs.

In case you would like to figure it out on your own then here’s a list BEST CRM SOFTWARE 2020 by the very reliable Business News Daily that talks about latest trends in technology and how businesses can use them in their favor. 

You can also let us know if you need to integrate any of that CRM software with your current system. Archisys is always more than happy to help.