What Is a CRM? And How Does It Help Businesses?

What is CRM?

CRM stands for customer relationship management and refers to the combination of strategies and technologies businesses use to optimize customer engagement and use data best. Overall, customer relationship management combines sales, marketing, and service under one system and strategy so that teams can align their efforts to meet their organization’s goals.?A strong CRM strategy accounts for all stages of the customer journey, from when a potential customer becomes aware of your brand to after they make a purchase and become a loyal, repeat customer.??

What is a CRM system and what can it do??

The main purpose behind a CRM system is to use data and automation to achieve company revenue goals. Let’s explore some typical CRM system capabilities.?

Customer experience?

Settings and features within CRM systems can improve customer experience in several ways, including automating replies to support requests, signalling when to follow up with cold and warm sales leads, and customizing messages to fit customers’ specific needs.?When a business meets and exceeds customer expectations, customers are more likely to become loyal.

Sales

CRM systems allow sales teams to monitor the sales pipeline and categorize leads to prioritize their marketing efforts and drive sales.?The sales pipeline helps businesses or marketing teams visually track potential buyers as they progress through the purchasing process.

Marketing

CRM systems can streamline audience targeting to help reach niche audiences during a marketing campaign or message customers at various stages in the buyer’s journey. That way, audiences get the content they need exactly when they need it so they can make empowered buying decisions.?

Service

CRM systems can help customer service representatives resolve cases faster, enable customers to find solutions on their own and automate service processes. These capabilities can save your business time and expense while contributing to customer satisfaction.

Commerce

CRM systems can create seamless ordering experiences, allow multiple payment methods and multiple channels, and expand your digital marketplace to third-party sellers.

Collaboration across teams

When data is widely accessible,?teams have more opportunities for impactful collaborations and cross-functional work.???

Once you've researched several CRM tools, select a few to practice using, especially if a free trial is available, before making a long-term investment. Some of the tasks you’ll want to practice include:?

Importing data.

Data might entail information about customers, sales, and marketing channel activity. You may be able to use actual data from your own business or simulate it with made-up information for learning purposes.?

Setting up automation.

Automations help ensure important tasks get done without having to execute them manually. Practice automating email sequences to prospective and current customers and delivering freemium content to new subscribers.?

Monitoring results.

Select a few metrics to measure for practice, such as email opens, social media mentions, and conversion rate, and set a date for checking in and deciding how to respond to the results. For example, if the email open rate is lower than you anticipated for a given period, what improvements could you make to email subject lines to encourage more clicks from subscribers??