Menu

What is CRM?

By Istvan Bujdoso | ARCHIVED

Oct 22

Before I started writing this article I asked the question “What is CRM?” from quite a few people to understand what CRM mean to them. The most people answered something similar to the following: “CRM is a system where I can store my contacts, make notes related to those contacts, see my tasks”. That was point I realised it’s worth writing this article. Read further and find out why.

CRM is much more then a system. CRM is the abbreviation of Customer Relationship Management, it is a business strategy, all activities needed to achieve the company’s customer oriented goals.

The main goals of CRM are to attract ideal clients, to build and improve the relationship between customers and the business, to increase sales and profit and to enhance customer satisfaction.

CRM involves marketing, sales, customer service/support and the tool that helps joining them all together, the CRM system.

Let’s have a very quick look at each one them.

CRM Process

Marketing

The purpose of marketing is to attract your ideal client and make them interested in your products or services.

Even if you have the best products or services, without high quality marketing, your customers won’t know about them. Marketing is one of the key elements of your business. Bad marketing results in losing money. On the other hand, good marketing strategy increases your company’s sales.

Different types of marketing can be used to promote your business and the benefits it can provide: email marketing, social media marketing, content marketing, PPC advertising, etc. .
Your marketing strategy can include all of these or can be a combination of a few of them. It depends on your situation, what the best fit is for your business and for the current market. The strategy has to be tested and results must be measured during the processes to maximise attraction and interest.
This is where the CRM system comes into the picture. It helps in measuring and analysing results. Also it stores the details of the leads collected during the marketing process that will be a fundamental element of the sales strategy.

Sales

The purpose of sales is to turn interest into purchase, leads into customers.

High quality sales is essential for a successful company, it can massively boost your revenue.

Sales has many forms: cold calling, warm calling, direct email campaigns, face to face meetings, etc. . Like with the different types of marketing, the mixture of these forms vary based on what is the best for your company.

To optimise the results of the sales details have to be fed back into the CRM system where they can be followed and analysed. The sales information stored in the CRM system is part of the evidences of what worked well. They can be used to refine the future marketing and sales campaigns.

The customers’ details in the CRM system are also useful when customers are serviced/supported.

Customer service/support

The purpose of customer service/support is to handle complaints, to help clients in need and to make sure they are satisfied with your product or service.

Why excellent customer service/support is important? It’s easy, if your customers are happy with your product or service they will recommend you and that can result in more sales for you. Or you can lose future clients if they are unhappy because they will talk about their bad experience to others. Researches show that an unhappy consumer talks to 7x more people about their experience than a happy consumer. It’s really important taking care of your customers and making sure they are satisfied.

The CRM system helps tracking the complete relationship detail that is accessible by all of the teams. This way the communication with the customers (marketing, sales, customer service/support) can be personalised that improves the customer experience and satisfaction.

CRM system

The CRM system is a tool that helps joining marketing, sales and customer service/support together.

A good CRM system can bring a huge benefit into your business. On the other hand a bad CRM will waste valuable time and money in your company.

A good CRM system provides features that help:

  • saving time during the processes
  • automating processes
  • increasing the effectiveness of the staff
  • tracking relevant details in each phases (marketing, sales, customer service/support)
  • measuring and analysing results
  • sales forecast by a date (based on this the business is able to take actionable steps to stop where the “leaks” are in the sales funnel)
  • etc.

CRM

Summary

CRM (Customer Relationship Management) is a business strategy, all activities needed to achieve the company’s customer oriented goals. It involves marketing, sales, customer service/support and a CRM system.

The purpose of …

  • … marketing is to attract your ideal client and make them interested in your products or services.
  • … sales is to turn interest into purchase, leads into customers.
  • … customer service/support is to handle complaints, to help clients in need and to make sure they are satisfied with your product or service.
  • … a CRM system is to help joining marketing, sales and customer service/support together.

The benefits of high quality CRM:

  • increased profit
  • better efficiency
  • improved customer relations and experience
  • time saving

All parts of CRM are important and they have to work smoothly together to maximize the benefits of Customer Relationship Management.

Follow

About the Author

Istvan Bujdoso (47istvan) - Helping entrepreneurs to automate their lead generation... 47funnelsecrets.com