The 3 Types of CRM Software: Features & Benefits

At the core of any effective business model lies creating and maintaining your customer relationships. However, constantly overseeing your customers and their interactions with your business is no piece of cake. This is where CRM software solutions offer you a major solution.?

In this segment, we observe the three main types of Customer Relationship Management software and what sets them apart.

What is CRM?

Customer Relationship Management (CRM) refers to a set of strategies and methodologies aimed at enhancing the customer experience. CRM software is a platform that enables marketing, sales, and customer service departments to build customer relationships and provide value to current and would-be customers.

In today’s competitive landscape, every product or service has a wide range of providers, giving lots of options to buyers. We naturally tend to choose businesses and brands that offer the best value, both in terms of the item and the customer experience.

With social media and email marketing becoming prominent, buyer journeys have become more complex to track and assess. CRM software gathers large volumes of customer data and provides you with actionable insights into your business model and how you can improve the customer experience.

CRM platforms come with functionalities such as lead management, dashboards, and automation tools for tracking your KPIs. Depending on the nature of your business workflows, you might need specialized CMS systems for optimum performance.

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The 3 Types of CRM

1. Operational CRM

As the name suggests, this type of CRM streamlines business operations, especially those pertaining to customers. Operational CRM features tools that automate your sales force, marketing, and after-sales service workflows.?

First and foremost, operational CRM addresses various aspects of your sales tasks. It can allocate leads to respective sales reps and give them data on which leads are more likely to convert. It can also automate a significant part of your marketing efforts such as executing campaigns to grow leads, directing further campaigns to old customers, and so on.?

The primary benefits of operational CRM include:

• Keeps track of vital information starting from leads to sales KPIs.
• Provides recommendations to drive sales, such as opportunities to upsell and cross-sell.
• Automates routine workflows such as assigning leads and sending reminders.
• Oversees marketing and advertising campaigns, and
• Offers a self-help option to customers.

Ideal for: Operational CRM is essential for any kind of business, especially those with one-track sales processes, small businesses, and startups.

2. Analytical CRM

?Analytical CRM focuses on data analytics and evaluation regarding all aspects of your business – where leads come from, potential customers in the pipeline, number of purchases for each product or service, tickets open at present, and so forth. The key features of analytical CRM include:

Data Warehousing – Storing and organizing all the gathered data in a centralized server or a data warehouse.

Data Mining – Using techniques such as classification, association, and anomaly spotting to identify patterns in data and find meaning.

Online Analytical Processing (OLAP) – Focuses on data discovery along with capabilities of analytical calculations, data interpretation, and predictive analysis.

The major upsides of Analytical CRM solutions are:

• Drives customer satisfaction
• Tells you the best times to upsell and cross-sell.
• Improves customer retention rates.
• Caters to prospective and existing customers with valuable content.
• Maximizes returns by showing you what sells and what does not.
• Spots your pain points and offers remedies.
• Devices apt buyer personas and customer journeys.
• Streamlines your marketing campaigns, and
• Helps you discover new opportunities and growing market trends.

Ideal for: Analytics CMS software is particularly effective for medium and large-scale businesses with a large number of offerings and complex workflows.

3. Collaborative CRM?

Also known as strategic CRM, this type of software facilitates collaboration and communication among your teams. It enhances your internal communication to improve your customer support and service. Microsoft Dynamics 365 is an apt example, empowering teams to share files and work on documents in real-time. Here are some notable features of Collaborative CRM.

Interaction Management – Optimizing the exchanges between your business and customers and giving you a 360-degree view of your customer service operations.

Channel Interoperability – Managing your brand’s customer experience across various channels like social media, email, and phone.

Document Management – Controlling and centralizing all your customer records such as contracts, proposals, and service level agreements (SLAs).?

The key advantages of Collaborative CRM include:

• Enhanced communication across teams
• High-quality data storage for a comprehensive idea of your customers.
• Foolproof support for clients across their preferred channels.
• Data-focused and informed customer interactions.
• Messaging based on concerns and pain points.
• An all-encompassing approach to the entire buyer journey.

Ideal for: Collaborative CRM platforms are especially favorable to enterprises that rely on cross-department communication across multiple channels, like E-commerce stores and healthcare institutes.

How to Select the Ideal Type of CRM for Your Business

There is no universal solution as all three types of CRM platforms have different use cases and applications. Keep the following points in mind when investing in CRM software for your business.

• Evaluate your requirements by setting up a checklist to determine the type of CRM.
• Get informed about the different CRM needs in your industry and similar ones, particularly for small niche businesses, both profit and non-profit.?
• Look up and compare different options.
• Send specific RRPs (requests for proposal) to facilitate your search and decision.

Closing Remarks

Irrespective of the type, CRM offers key features and advantages that have transformed the way businesses cater to their customers. From automated sales, marketing, and service workflows to handling big data and drawing valuable insights, these software solutions save your business significant amounts of time and labor, driving overall profitability.

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