3 Popular Types of CRM: Which One is Right For Your Business
For any business, their customers are really important. No matter what you’re selling, managing your customers is necessary for the success of your business. Businesses must focus on being transparent and honest with their customers and share the correct information. This not only solidifies their relationship but also brings the stability and faith between the both. A strong relationship with your customers can lead to positive word of mouth, and ultimately increased sales. Thriving business by getting new customers and dealing well with an existing customer, is all that this commercial world works upon. In the current scenario, if you do not have a proper management system to handle your customers and their requirements, you may lose a lot of business.
To save you from such situations, Customer Relationship Management (CRM) plays an essential role. According to a recent study published by Gartner, CRM is both the largest and fastest-growing enterprise software category and spending on CRM software reached $48.2 billion in 2018.
Here in this article, we're going to discuss in depth about the CRM and its type, so that you can get your own CRM software solutions developed, per your business needs.
What is CRM?
Customer Relationship Management, popularly known as CRM is a software that helps businesses automate repetitive tasks for efficiency, keep a record of customer data, and boost customer satisfaction. The first word of CRM, i.e. “C” itself explains that CRM is all for customers. The main agenda of any company, irrespective of the size, is managing customers. CRM tool helps you understand your customers better, and use that information to deliver the best possible customer experience. It can also help you make sense of the large amounts of data collected about your customers, so you can further optimize your marketing and sales tactics.
CRMs attract leads and convert those leads into customers, and sustain customer relationships. Customer Relationship Management software helps businesses to communicate with prospects or customers properly. The main purpose of any CRM is to enable an organization to understand the needs and behavior of customers and deliver high quality of service. CRM solutions not only retain existing customers but also gauge new opportunities by building a strong relationship between a company and its customers. A CRM contains all the details about past conversations and interactions you’ve had with a customer, which helps make the further contact personalized. CRM software with service automation can provide helpful information via email, text message, or a phone helpline depending on customer preferences.
Types of CRM
Choosing the right CRM can be a challenge, as there are various kinds of CRM tools available in the market. Understanding the benefits of each type of CRM will help you choose the right one for your business. If you are planning to have a customized CRM for business, we would recommend you to reach out to the best CRM software development company, as they have their own team of experts, who can create a customized CRM based on your requirements.
CRM software can be divided into three main categories.
- Operational CRM
- Analytical CRM
- Collaborative CRM
Let us know the benefits of each type of CRM in detail
Benefits of Operational CRM
It helps streamline a company’s processes for customer relationships. It typically automates the process and offloads the work so that your employees won’t have much pressure. The primary purpose of an operational CRM is to generate sales by nurturing leads in the right manner.
Operation CRM solutions automates the process and keeps the track of the leads as it is impossible to keep everything in your mind. Each time a contact interacts with your company, the CRM automatically updates their contact details. This helps in further interaction, so that agents won’t have to take the details again and make it readily accessible to anyone in your business that needs it.
Sales team automation
It automatically tracks contacts and updates their status from prospect to qualified lead once they’ve completed certain actions or met specific criteria. CRM software can easily assign tasks to your sales team so that sales executives can follow-up with prospects and current customers. It makes you stay with the customer in their life cycle and interacts at each stage to keep a check on the existing leads.
The lead scoring capability of operational CRM helps you in prioritizing your leads and to nurture them. It helps you find the most prospecting lead to nurture with automation or a personal touch. If you are also looking for a solution like this, you must hire professional IT services so that they can develop a customized CRM solution for your business.
Operational CRMs make marketing teams automated that would otherwise take up sizable chunks of their day-to-day. Operational CRMs solutions allow marketers to automate otherwise tedious and time-consuming responsibilities like coordinating email campaigns, distributing content offers, and reaching out to contacts at scale.
Benefits of Analytical CRM
It allows organizing and analyzing customer and sales data. The data mining capabilities of analytical CRM tools provide granular information about prospects and customers. This data includes the average deal cycle, customer retention rates, monthly recurring revenue, and any other information you collect.
An analytical CRM works as a data warehouse. Analytical CRMs use data mining techniques to track down information and data trends relevant to customer interests. This technique offers a better picture of the customer’s lifecycle including a process that encompasses customer identification, attraction, retention, and development.
Analytical CRM helps analyze data on your company’s past sales trends to predict future demand. It predicts if the particular product will be in demand in the future or not. In short, it can track seasonal fluctuations in demand. It provides business flexibility to meet growing demands, keeping the existing inventory.
Buyer persona building
Understanding your customers’ wants, needs, and personalities can help you improve your marketing. The data helps in building the buyer’s persona, as the CRM can help you structure the data it collects. It just not only helps you in discovering a new persona but also makes your existing persona more robust.
Benefits of Collaborative CRM
A collaborative CRM is a platform designed to facilitate the seamless exchange of data within teams and departments, which most companies face difficulties. This includes internal and external stakeholders, such as other departments, suppliers, vendors, and distributors. It helps build customer profiles based on the information collected during their earlier interactions with a company. Collaborative CRM helps retain, satisfy, and serve existing customers better, and also attract and retain new customers.
As mentioned above, it exchanges data within teams and departments and keeps all teams aligned and up to date before they interact with each customer. This gives people a better, more personalized experience across the board.
Collaborative CRM solutions help with document management systems, and keep every document from every team organized. So, if your team needs access to a contract, technical documentation, or proposal, a collaborative CRM can help and you need not search through your desk or pester your finance team.
Collaborative CRM tools help understand which channel is effective in attracting and converting leads, thereby redirecting marketing resources as needed as different customers prefer different communication channels to interact with. Channel management team is responsible to answer the questions like, which mode will be preferable to interact with customers, email, or chat? The sales team should go for one-o-one meetings or interactions through a phone call.
Each kind of CRM has its benefits, and it offers profit to the business. Still, it’s important to recognize which kind of CRM best suits your needs and make your decision with that in mind. The right CRM development services help your team to deliver personalized customer support and it gives you the power to understand your customers better and also understand their needs and preferences. While it's important to choose the right one, you'll face bigger problems without using one at all. If you aren't already using a CRM, this is the perfect time to start!