What is a CRM system?

When people talk about CRM in everyday life, they usually mean CRM systems. That is, the software services that are available for purchase, such as Salesforce, Microsoft Dynamics, Hubspot, and others.

When these systems are up and running, it's amazing. They allow companies to focus on relationships with their customers and make it much easier to bring in customers, gain their trust and sell more over (a longer) relationship.

In this article you will discover what CRM is, what companies it is for and what the benefits of using it are. By the time you've finished reading, you'll have a clear picture of what you need to do next to move forward.

Let's go!

What does a CRM do?

In a nutshell, CRM systems offer a way to collect and manage data about people who are important to a company. This is primarily data about customers and potential customers but can also be data about partners, resellers and even suppliers. 

There may also be features to keep track of interactions across multiple channels, such as email, phone calls and the website. This allows the company to get an overview of where prospects and customers are in their buying journey and also create standard processes for consistent customer service.

CRM can help...

• Seller: to see previous contact that a customer or lead has had with the company. In this way, the next activities as well as the message are adapted to increase relevance and increase sales and additional sales.

• Marketers: to create personalised campaigns based on where you are in the customer journey. Supporting and simplifying the sales process with the information and insights needed to make a buying decision  

• Customer service: view customer information and past cases to get the full picture and better provide the help the customer needs.

Which companies should use CRM?

I would say that almost every company can and should use a CRM. Whether you work in a B2B or B2C company, there are clear benefits and a system that is right for you.

There are CRM systems for brokers, NGOs and everything in between. The range has exploded to the point where, whatever your size or industry, there are a range of options to suit different needs and objectives. There are even systems tailored to selling to government, local authorities and county councils. 

So even if your company is not called IKEA, you can still benefit from using a CRM and working with the methodology. The real key to success lies in how you work with CRM - not how big your company is.

Many systems are also scalable. This means you can add functionality as you need it. You can start simply and cheaply - and let the system expand as your business grows.

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Benefits of using CRM

If I told you that for every penny you invest, I'd give you 8 back. Would you say that was money well spent?

Those are incredible numbers!

And I can promise you it's not a pyramid scheme. Nor is this an example taken out of thin air, but the reality that companies that effectively use CRM, build for themselves.

Nucleus found that for every dollar a company spends on CRM, they get back $8.71! 

And here's the best part: that figure was just $5.60 three years earlier. So in 3 years, the benefit of (or cost of NOT using) CRM had increased by 1.5 times.

But what other benefits are there? With a CRM you can...

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Reduce costs

Every company is always looking for ways to minimise costs, and with CRM this saving comes in the form of greater efficiency. 

In a well set up system, everything salespeople and others need to know about customers and leads is presented. What and who they should focus their time on also becomes clearer.

A properly implemented system gives the sales organisation the support they need to make even better decisions and sell more. This way, you can do more with less and don't necessarily have to recruit more people to sell more.

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Building stronger relationships

Because information about customers and leads is collected and presented clearly, it opens up opportunities to strengthen the relationship by giving them what they need, when they need it. 

Through the CRM, marketing, sales and customer support can create a common understanding of the buying journey from the customer's perspective and become more relevant in dialogue with the customer. 

Now that more and more companies are creating unique and positive experiences for their customers beyond their basic offerings, this personalisation will become even more important.

Because you don't want to be the one who stands out for the wrong reason, do you?

Keep communication consistent and clear

As a customer, it's annoying to feel that the company you're dealing with is out of control. 

Even though I know myself that it doesn't necessarily mean that the main offer is bad, I still get a negative image of the company. For example, if I get an email asking for a product review more than once, sending suggestions for products I've already bought, or getting a call when I've already asked them to stop.

With the structure that a CRM can provide, many of these little annoyances can be avoided. You can also keep your communication clear across multiple channels and internal functions.

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Popular CRM systems

When it comes to CRM systems, it's a jungle out there. Literally the deepest Amazon.

The CRM market was worth $56.5 billion in 2019 and, according to Gartner, is only getting bigger. 

So to make it easier, here's a small selection of popular schemes for different sizes of business. 

• Salesforce
• HubSpot
• Lime
• Pipedrive
• Microsoft dynamics
• Upsales

Summary

CRM allows companies to focus on building relationships with their customers and streamlines mainly sales and customer service, but has benefits for marketing as well. Companies that effectively use CRM in their processes gain significant advantages over their competitors.

If you have any questions about CRM you can read more or contact us directly - ask, we are experts!