December 7, 2022

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What is a CRM, and Why do You Need One?

What is a CRM and Why do You Need One?

 

Customer relationship management (CRM) software is a system that helps you manage and grow customer relationships. It’s not just a database of customer data but rather a strategic business tool that allows you to automate how your company interacts with customers. Implementing a CRM solution can significantly improve the efficiency of your sales team, increase your sales conversion rate, and streamline processes so that everyone speaks the same language regarding your customers. Read on to find out more about CRMs and why you need one.

What is a CRM?

CRM stands for Customer Relationship Management. A CRM is a software solution that helps organizations manage their sales and marketing activities by tracking their customers’ interactions, activities, and related data. A CRM solution will include sales methodologies, marketing automation, and customer service that help increase your team’s efficiency and overall customer experience. A CRM solution is also commonly referred to as customer management software, customer relationship management software, sales management software, or customer communication management software.

Why do you need a CRM?

Sales – A CRM will help you see customer relationships from a new perspective. You’ll be able to see how many customers you’ve brought in, what stage in the sales process they are in, and how many new leads you’ve converted into customers. This visibility ensures that you spend your time on suitable activities at the correct times. 

Marketing – A good CRM will allow you to track your customer activity across multiple channels, such as your website, email campaigns, and social media accounts. You can then use this data to quickly identify ways to retarget your most engaged customers and reach out to those who have shown interest in your brand but have not yet purchased a product or service. 

Customer service – A CRM is key to providing the best customer service experience. Whether your customers are trying to find information on your website, get support for an issue they’re facing, or purchase one of your products, a CRM can help you keep track of their needs and wants so you can provide the best service possible. 

Team communication – Let’s face it: working in sales and marketing can be hectic. No one likes to feel disorganized, and even the most organized people can get bogged down with their daily tasks and forget about essential leads. A CRM solution can keep track of leads, let you know when a lead becomes a customer, and help you share information about your customers with your sales and marketing teams.

How to choose the right CRM for your company?

Sales strategy – Before you choose a CRM solution, you should understand your sales strategy and how your target audience purchases products and services. Your sales strategy will also determine your business’s most crucial CRM features and functionality. For example, if your business has a strong focus on leads and you’re not that concerned with customer retention, then a CRM solution that is heavy on lead conversion will be best for you. 

User needs – Once you’ve determined which CRM solution best fits your company, you must ensure your team members are happy with it. If you aren’t, you’ll see a decrease in productivity and errors when completing tasks requiring CRM input, such as generating sales reports.

You can learn more about retail CRMs in this interview with Leigh Sevin.

You can learn more about the Endear CRM here

Types of CRMs

Traditional CRM – A traditional CRM solution is designed to track your customers’ activities, help you prioritize your sales efforts, and provide data that enables you to make strategic marketing decisions. These solutions can be either cloud-based or on-premises, although most companies choose cloud-based solutions as they are more cost-effective and scalable. 

Relationship marketing (RM) CRM – RM CRMs focus on building and managing customer relationships at every stage of their journey with your company. RM CRMs will help you create personalized experiences for your customers when they visit your website, interact with your sales team, and use your products or services. 

Sales activation CRM – Sales activation CRMs focus on generating leads from your website and converting them into sales. These solutions are designed for companies focusing on lead acquisition and marketing activities such as email campaigns and social media advertising.

Contact center CRM – A contact center CRM is designed for companies that offer customer service through a call center. These solutions integrate with your call center software to help agents track their activities, prioritize their work, and view customer interactions and data related to their company’s call center activity.

Social CRM – Social CRMs are designed for companies that want to use their social media channels as a lead-generation tool. These solutions will allow you to track your social media activities, such as the number of times your company posts on social media, likes, and followers, and view data related to lead conversion.

Conclusion

Investing in a CRM solution can significantly improve the efficiency of your sales team, increase your sales conversion rate, and streamline processes so that everyone speaks the same language regarding your customers. Depending on your business needs, there are several CRM solutions to choose from, including traditional CRM, relationship marketing CRM, sales activation CRM, contact center CRM, and social CRM.

Talk-Commerce Leigh Sevin
Talk-Commerce Leigh Sevin

Who is Brent Peterson?
Brent is a serial entrepreneur and marketing professional with a passion for running. He co-founded Wagento and has a new adventure called ContentBasis. Brent is the host of the podcast Talk Commerce. He has run 25 marathons and one Ironman race. Brent has been married for 29 years. He was born in Montana, and attended the University of Minnesota and Birmingham University without ever getting his degree.

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