What is a CRM System? A Beginner's Guide

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What is a CRM System? A Beginner's Guide
by Marketing


What is a CRM system?


Customer Relationship Management is a type of software that helps businesses collect, organize, and analyze customer data to build better relationships. You can track customers across every touchpoint to ensure they have a pleasant and satisfying interaction with your brand. 


Housing data in one place also gives you a better understanding of how to market, sell to, and serve customers and prospects. 


In the past, only large enterprises could afford a CRM system, and the software was difficult to learn and use. Today, there are easy-to-use, affordable CRM systems that cater to businesses of every size. 


Why Your Business Needs CRM: Build Better Customer Relationships


Nowadays, it takes more than a great product or service to keep customers satisfied. True customer satisfaction depends on the quality of your relationships. Treating the customer as a valued partner vs. a transaction establishes a mutually beneficial connection and creates customer loyalty, vital for long-term business success. Repeat customers generate 33 percent more revenue. You can also leverage your superior service into new customers. Happy customers share their experiences with others and refer 11 people on average.


However, to create the relationships you want, you’ll need to find out as much as possible about them. Cue your CRM. It can collect and make sense of vast amounts of customer data. 


Why Your Business Needs CRM (Part II): Better Management, Marketing, Sales, and Service


Designed for relationships, CRM has a dizzying number of features to drive success across your entire organization. (Find your CRM for Free)


Executives, Marketers, Sales Teams, and Customer Service can all benefit from the right CRM platform. Let’s drill down into the specific tasks and benefits a CRM can perform for each department.


CRM for Business Owners


In an increasingly digitized world, businesses may need to redefine how work gets done to stay competitive.


A CRM can modernize all of your office processes to increase profitability and efficiency. It also provides an inside view of how your employees and departments are performing.


Save Money With a CRM System


A CRM system digitizes all your paper records, such as customer information, financial data, communications, and notes. This consolidation significantly reduces your overhead. You don’t just eliminate paper waste; you get rid of your inefficient paper-based processes, saving you time and money. According to industry statistics, for every dollar a company spends on CRM, it brings back US$8.71.


Better Reporting


Charts, funnels, graphs, and dials can turn all of the data flowing into your CRM into intelligible, visual metrics. The process is automatic, transparent, and requires only a few clicks from staff to generate analytical reports, such as: 

      • Sales reports (revenue, pipelines, conversion rates)
      • Campaign reports (traffic volume, bounce rates, email opens, marketing ROI)
      • Customer reports (buying patterns, demographics, lifetime value, retention rates)

With CRM, you can easily monitor the productivity of your sales, service, and marketing departments.



Monitor Employee Productivity 


Your CRM can also track individual productivity through activity reports. The CRM will record all of the users’ open and closed tasks. For example, you can view emails sent, calls answered/unanswered, meetings attended, and sales opportunities won and lost. 

This eagle-eye view of your employees allows you to identify strengths and weaknesses among your staff. For example, someone may be primed for a promotion, while a lagging member might require additional training. 



CRM for Sales Teams


Sales teams tend to resist any tool or task they perceive as taking them away from their core job–selling. But investing a few moments in CRM software each day can improve their work-life and commissions. Here’s how.


Automated Lead Scoring


Not all leads are created equal; instead, they are “scored” by their likelihood of becoming a paying customer. A CRM can provide automatic lead scoring according to your definition’s priorities, including job role, number of touchpoints, company budget, or location. You set up the scoring rules, and your CRM will deliver the hottest leads to your sales team.

A CRM can trigger automatic responses (such as emails, promotions, and popups) to advance leads through the sales funnel. 


Streamline the Sales Cycle


A CRM helps streamline the sales cycle, allowing staff to close deals faster. Automating routine sales tasks, such as preparing quotes and processing orders, is key to time management. In addition, the CRM dashboard tracks everything in the pipeline so that the sales department can identify any bottlenecks. It can also analyze your top performers’ behavior so that you can share their’ secret sauce’ with the rest of the team.


Identify Selling Opportunities


By tracking all communication with customers, CRM helps salespeople identify the right opportunity at the right time. For example, they can see where a customer is in the buyer’s journey and know just when to pitch a product replacement, warranty extension, contract renewal, or upsell.

A CRM can also analyze customer behavior and provide the best time to reach customers and leads. For instance, it keeps a record of email opens and can identify when an email is most likely to be read. Likewise, call logs to determine when the customer is most likely to answer the phone. As the adage says, timing is everything. When a CRM times your sales activity, your team is much more likely to close the sale.  



CRM for Marketing


A CRM offers your marketing team a treasure trove of data that they can use to make a lasting impression for your brand. It can also automate some of the less inspiring marketing tasks so that they can focus on strategy.


Marketing Automation


A CRM allows marketers to automate a lot of their top-of-funnel activities. A cookie tracks visitors as they navigate the company website. Marketers can program the CRM to perform specific actions based on visitor behavior automatically. For example, if a visitor lingers on a product page, this could trigger a popup of a demo video. If a visitor abandons their cart, this could trigger an email offering a discount on one of the items. These built-in actions allow your business to rope prospects back in–automatically.



Customer Targeting


Consumers are surrounded by personalization every day. Spotify creates carefully curated playlists based on your listening history. Amazon has an uncanny ability to suggest the product you didn’t know you need. And YouTube can keep you glued to your screen, offering hour after hour of entertaining videos. These companies know their customers intimately. 

Consumers have come to expect the same degree of personalization from every business transaction. Indeed, 72% of consumers will only engage with personalized marketing. 

What’s a small business to do in the face of such high expectations? Invest in a CRM. A CRM collects customer and prospect data such as geographic location, purchase history, industry, lifetime value, site visits, products viewed, and job titles. The software then segments your audience, allowing you to create highly targeted ads that are more likely to grab your buyers’ attention. 


Marketing ROI


The average marketing budget comprises 11% of total company revenue. This allowance gives marketers the ability to create successful, wide-reaching campaigns. But, unfortunately, it also gives them the potential to waste large sums of money, particularly if they don’t know how to calculate the ROI for each marketing dollar spent. 

With a CRM, you’ll never wonder if a campaign converts. A CRM tracks KPIs such as impressions, clicks, views, and time spent on the page. These metrics deliver clear signposts for what content engages your audience and what turns them off. 

CRMs explicitly developed for marketing, such as HubSpot, allow you to track leads from source to sale. Suppose your marketing team is better known for its creative flair than its grasp of numbers–no problem. HubSpot CRM has a built-in ROI calculator and can generate easy-to-read reports. 



CRM for Customer Service


Customer service is becoming an increasingly tough gig. Customers have become more complicated and demanding. Plus, customer service reps must navigate a complex web of touchpoints. A CRM platform can make it easier to keep customers happy in the following ways:




All employees stay connected to the same customer record. As a result, no details or requests ever fall through the cracks. In addition, coordination is beneficial for complex service tickets that require ongoing support across multiple departments.




AI-powered chatbots can relieve the monotony of routine tasks. For example, the most commonly asked questions route to your bots. Basic tasks led by AI, such as resetting a password or signing up for a webinar, free up customer service reps to do what matters most: nurture client relationships. 


Multi-Channel Support


It is the age of hyperconnectivity. Customers and businesses can engage in more ways than ever: chatbots, social media, phone, text, and email. As a result, countless interactions are happening around the clock on multiple channels. It’s all but impossible to keep up with them, and yet customers expect immediate attention


CRM software delivers real-time notifications every time someone interacts with your brand on any channel. Customer service reps can respond from a single dashboard, no need to toggle between windows. 



Why Every Business Needs a CRM System


In a crowded marketplace, customer relationships have become a strong currency. You can think of a CRM software system as the mint. CRM software takes in all customer data, analyzes it, and delivers business insights about their customers. Your business, armed with new information, can serve clients better and create relationships that last.


Originally published on April 6, 2021 (FindMyCrm.com)