What Are CRM Systems And Should You Get One?
CRM systems are being used more and businesses are struggling to get their hands on one that would meet all their needs. It is the world’s fastest-growing software market and is on track to generate sales to the tune of over $80 billion by 2025.
But, what exactly is it and why is its importance increasingly rapidly in the modern business environment?
What is CRM system meaning?
A customer relationship management system or CRM system means a system that gathers customers’ details across all channels and stores them in one place. It essentially helps businesses manage data in a centralized way, improving their customer experience, service, satisfaction, and, therefore, retention. Simply put, the system makes it easier for organizations to manage customer data.
With the help of this tool, companies can keep customer contact details current, track all their interactions with them, and manage their accounts. It is designed to help companies and users build and improve customer relationships.
How does it work?
A CRM system offers a centralized location for businesses to collect and store data of customers and prospects. It also allows for tracking customer interactions and sharing such data with colleagues, allowing companies to manage customer relationships and helps them grow.
- Managing contacts– It stores all of the up-to-date data about customers, including contact information, conversations of the service in a way that is easily accessible and available to update.
- Managing leads– Users of the system can track tasks, targets, and pipeline activities from prospect to conversion.
- Forecasting sales– Salespeople can determine the progress of their goals, get a better understanding of their pipelines, and better classify leads based on the forecasting reports generated by the system. Managers can also use these reports to motivate and oversee their teams.
- Internal instant messaging– Colleagues can clarify doubts, ask and answer questions, and pass on information with the help of the system’s real-time instant messaging feature. It also allows managers to check on their on-field employees and staff to request assistance or immediate feedback.
- Outlook and Gmail integration and email tracking– By automatically syncing email clients with CRM systems, businesspersons can get a complete picture of their customers and leads without logging in and out of multiple platforms. Emails can be written and managed from inside a single workflow, and calendars and contacts can be viewed on any device.
- Sharing of files and content– Data can be uploaded to a central location and instantly shared with colleagues
- Analytics on the dashboard– Data is compiled and displayed in intuitive, useful panel displays that may be tailored to each user’s preferences.
Advanced CRM systems, such as Salesforce, have even more capabilities, connecting with marketing automation and customer support systems to create a complete customer data ecosystem in the cloud.
What are CRM system benefits to a company?
In this information-driven world, bad data can be fatal to businesses. According to recent studies, companies lose around 550 hours and close to 32,000 USD per sales rep due to bad information.
Without a centralized system for your customers’ data, it wouldn’t be too hard for certain details to be forgotten or lost. Follow up on meetings and phone calls would be missed, and you would have to generate leads on guesses. Worst of all, if an employee with access to important customer information were to leave, the knowledge would leave along with them.
CRM Systems turn customer data into insights that are useful and actionable and can help transform a business. With CRM systems managing all your crucial customer information in one place, any inquiry, service request, preference, and previous contact details about each customer is readily available.
Additionally, you can use the system to schedule follow-ups, arrange the next steps, track phone conversations, sent emails, meetings, and presentations, and even take notes, ensuring that you don’t miss out on closing deals or expanding customer accounts. Cross-selling and up-selling opportunities also become more evident because of greater customer understanding, offering businesses a much better chance of winning new business from existing clients.
Mobile CRM system
Essentially the mobile version of the regular CRM system – mobile CRM (mobile CRM apps) – exist for the sake of boosting sales reps’ productivity in the field and offering users easy access to prospects’ and customers’ real-time information.
Now that smartphones have increased connectivity and are everywhere, the adoption of mobile CRM solutions has also spiked, increasing workforce productivity.
Nucleus Research, in a study, found that in companies where employees use a mobile CRM, 65% are achieving their sales quotas compared to 22% where non-mobile CRMs are used.
What Cloud-based CRM means is that all your company’s data is stored in the cloud (on the servers) maintained by CRM vendors. This way, the CRM can be accessed via the internet rather than a system installed on your office computers.
Recently, more businesses and users have felt a need for the ability to access CRM systems across different devices from different locations, which has led to the exponential growth of cloud-based CRM solutions. Currently, 87 per cent of businesses use this cloud-based solution, a sharp increase from 2008, when this figure was just 12 per cent.
So, why do companies prefer cloud-based CRM?
Time and money. It is precisely the savings on these that serve as the greatest motivators for the shift to cloud-based services. Cloud CRMs help businesses eliminate the need for on-premises specialist equipment and highly-skilled professionals to operate it, thereby trimming down weighty business processes.
Some of the top cloud-based CRM platforms are Salesforce, Hubspot, Zendesk, Zoho, Insightly, and Dynamics 365.
Should you invest in a CRM system?
Yes, you absolutely must. Regardless of whether you are a small or large organization, a CRM system will cut out a lot of redundancies, help you keep track of oodles of information, and optimize your operations. If you do not have the financial strength to install the system on your devices, you can always opt for cloud-based CRM systems, which are increasingly being used even by large corporations.
Even if you don’t feel like you need one right now, investing in a CRM system early on will help you in the long run and save you the headache of digitization and migration.