What is CRM? Definition and software examples
What is CRM?
The acronym stands for Customer Relationship Management:
- not only a customer relationship management strategy,
- but also the set of tools that support it.
In fact, CRM software allows you to centralize and exploit interactions and data relating to players outside the company (customers, prospects, suppliers, etc.).
What are the benefits and key functionalities? Appvizer gives you the ABCs of CRM - software ⤵️
What is CRM? Definition
A CRM tool, also known as Customer Relationship Management or CRM software, enables you to manage data, relationships and interactions with all your contacts, who may be of different kinds:
- customers,
- prospects
but also :
- members,
- members
- users,
- collaborators,
- partners,
- suppliers, etc.
It's an essential tool for all companies seeking to increase productivity and optimize their approach to customers throughout their entire lifecycle (prospecting, sales and loyalty).
The Eudonet video below gives a simple definition of CRM and reminds us that it is used in 3 main areas of business:
- marketing/communication,
- sales/business development,
- customer service.
6 key CRM features
1. Contact management
The heart of CRM is customer or prospect data. All contacts are centralized in a database, also known as a CRM database.
The company's various departments have access to the information via detailed files, either to update them or to search for information (last contact, last purchase, current dispute, etc.).
Comprehensive data also enables you to categorize your contacts according to their characteristics and behavior, for effective segmentation and marketing targeting.
2. Document management
e-CRM also centralizes all useful documents, making them accessible online 24/7 to all stakeholders:
- the sales rep on the road accesses an online quotation template which can be downloaded for presentation to a prospect ;
- if the customer signs an order form, the sales rep uploads it to the document database;
- logistics is immediately notified of the product ordered, and the billing department issues the invoice and sends it to the customer.
3. Sales process management
CRM software is essential for a company's sales force, as it takes into account the entire sales process, from the creation of an opportunity to the implementation of the various phases of the sales cycle.
Prospecting follow-up is made easier, thanks to the fact that each step taken by the prospect is recorded in a custom-configured pipeline: appointment setting, opportunity, sale, etc.
On the other hand, a CRM like Salesforce Sales Cloud is capable of automating sales processes by detecting the best business opportunities and suggesting them to sales reps.
Here's an image of the type of questions a sales rep can ask Zoho CRM's artificial intelligence, and how it can respond:
4. Send targeted marketing campaigns
In order to capture your customer's attention throughout the entire lifecycle, CRM software has a module or connector to marketing automation software (such as Webmecanik) for scripting and automating all your marketing actions.
If your contact base is well segmented, the marketing department sends out personalized e-mail campaigns, whether to mature prospects or keep in touch with loyal customers.
☝️ Some CRM systems, such as Initiative CRM, integrate emailing functionalities natively.
5. Performance analysis
By entering your indicators and sales targets in CRM, you can set up a dashboard to manage your sales activity, with key figures available in real time.
Based on performance, you can adjust your sales action plan to achieve your sales targets.
You can also make sales forecasts based on past activity, and detect periods that are favorable for prospecting or buying from your customers.
Certain data can help you identify the best customers, or calculate customer lifetime value, for example.
Example of a Sellsy CRM dashboard:
6. Support and customer service module
This is where every interaction with a contact, user or customer is stored.
A support and/or customer service module enables your team to communicate with your customers whatever the communication channel: telephone, email, chat, social networks, etc.
This type of module provides a ticketing tool that assigns the customer request, according to its nature and priority, to the appropriate member of staff: a technical expert, after-sales service, logistics, etc.
To facilitate customer service collaboration and responsiveness, some CRM modules offer a knowledge base and F.A.Q. for customers.
7. AI at the service of customer management
It's no longer science fiction or just a trend: used properly, artificial intelligence transforms CRM solutions into machines for boosting customer relations. It enables you to :
- automate repetitive tasks for sales and marketing teams,
- refine campaigns,
- take advantage of marketing automation
- and direct every customer interaction to the right channel, at the right time in the process.
Pretty handy when you've got other things to do than chase leads, but value customer satisfaction! 🙌
By cross-referencing your customer database with the history of your leads, the CRM system coupled with AI helps you choose the right specific action, improves the quality of customer service, and saves your sales teams a huge amount of time by lightening their load. Why? Because it enables you, for example :
-
develop the use of chatbots to respond to several customers at once,
-
identify needs thanks to predictive analysis,
-
optimize interactions and remain hyper-reactive on the market,
-
better respond to and identify customer expectations.
CRM systems such as Zoho or Salesforce already integrate these multiple advanced functionalities within their management software. These unique platforms offer a wealth of possibilities! In short, choosing an AI-enhanced CRM tailored to your needs is the way to simplify your organization, save time and, above all, improve your customer relationship management.
Other complementary functionalities
These functionalities are available natively, as modules or through connectors with other software:
- invoicing,
- agenda sharing (G Suite, Outlook, etc.),
- supplier order management,
- product catalog access,
- contact geolocation, etc.
To give you an idea of the vast possibilities offered by CRM software, here's an image of the Simple CRM application launcher:
Why use a CRM? 5 advantages
1. Know your customers better
A good knowledge of its contacts enables the company to improve the customer experience online, in-store, in short, across all sales and communication channels.
It gathers important data from every interaction, and preserves a valuable history.
As a result, customer follow-up is more efficient. Detect customers who are not active, automatically follow up prospects and analyze customer queries to optimize your customer follow-up.
In this way, you can ensure that every opportunity has been exploited and that your customers are satisfied with the offer or product you provide.
2. Better prospecting and selling
By getting to know your customers better, you can better respond to their expectations and offer them the right commercial products at the right time.
By segmenting your contact base according to the information you gather and update, marketing campaigns are personalized, have greater impact and a better return on investment (ROI).
3. Improve customer satisfaction and loyalty
Listening to your customers and users is also an essential part of the relationship: you need to be able to react quickly to demand, whatever the communication channel.
What's more, winning a new customer requires much more effort than retaining an existing one. It's also much more expensive.
A CRM tool connected to all channels enables you to track and analyze all exchanges with your customers, whether by e-mail or on social networks.
4. Be more responsive and work better together
The great advantage of CRM software is its ability to align marketing objectives with sales objectives. It enables you to implement a relevant marketing strategy to track the customer journey.
What's more, all CRM users have access to the same level of information and the same documents to work effectively around customer satisfaction.
To this end, Oryanoo CRM integrates professional messaging and document sharing. A collaborative application to help marketing and sales departments stop pulling their hair out!
5. Staying competitive, quite simply
In a digitalized world where customers are volatile and interact on a multitude of channels, companies need a connected CRM tool to stand out from the competition.
If you're wondering how to set up a CRM project, and in particular how to choose your software, don't forget that a good CRM is above all one that will meet your specific needs and that all your employees will quickly adopt.
What's the difference between ERP and CRM tools?
CRM and ERP are often confused: but they're not the same thing! These two equally effective technologies have different applications and functionalities. It's up to you to choose what suits your needs, but if you want to implement a structured approach to your business, you need to make no mistake. Both tools are there to help you achieve your business and professional goals, but in different ways.
CRM (Customer Relationship Management)
As you've already guessed, a CRM solution is an IT tool used to manage your company's customer relations! It allows you to focus on easily improving the customer journey and giving high added value to every relationship with the user.
✅ Do you want to be responsive in all your collaborations? Do you want to respond quickly to your prospects' needs, questions and requests? CRM manages your business efficiently and productively, and provides you with genuine relational support.
ERP (Enterprise Resource Planning)
ERP doesn't pretend! Easily integrated into your daily routine, it optimizes your company's internal organization. This comprehensive software package provides you with centralized data to manage a wide range of tasks, such as accounting, project management, risk management, purchasing and inventory management. In short, it gives you a new, global view of your business.
In short, CRM software offers you the best service for managing customer relations, while ERP software boosts internal processes. The important thing is to use the one that will be most useful for your company and your employees. And why not use both? It all depends on the problems you face and your objectives.
Is CRM useful for all company sizes?
Small, medium-sized or large: every type of company has everything to gain from using a management system adapted to its sales cycle. After all, it's not size that counts, but strategy, customer potential management and management efficiency. Whether you're a VSE, SME or large corporation, there' s a CRM for you... as long as you find one that suits your needs.
VSEs: get to the heart of the matter, without drowning
With few staff, a limited budget and often only one tool to manage everything, CRM becomes a new central point for every message, exchange or contact, and improves the customer experience. It facilitates implementation, optimizes costs and prevents oversights.
SMEs: structuring for growth
This is where CRM starts to become a lever for management and strategy. It is capable of managing customer potential, analyzing behavior, making joint decisions, and arming the sales force by offering solutions without multiplying tools. Updating becomes automatic, monitoring clearer and collaboration between employees fluid.
Large companies: control, segment, automate
In a growing, high-volume group, the integration of a CRM offers a central network:
-
multi-channel follow-up (website, social networks),
-
detailed segmentation,
-
business management dashboards,
-
adaptation to each stakeholder or partner.
Whatever your level of maturity, the right CRM can help you turn a corner. The only real question is: are you ready to exploit its full potential?
Now you know the answer to "What is a CRM?"
A well-used CRM is more than just a tool! It's a unique platform that connects communications, the sales force and customer support. It enables you to sell, analyze, manage and ensure the implementation of targeted actions, even with a single device or a small workforce. Every agent or employee has easy access, whatever their job or sector. Every message, every point, every phase is tracked, from the first contact to the selection of the right supplier, the order, and then maintenance.
Designed for the future, aligned with a realistic strategy, CRM offers greater profitability, higher conversion rates, lower costs and greater visibility. Ultimately, it simplifies decision-making for you, based on concrete metrics. In fact, a good CRM platform helps you manage your business, your account, your revenues, while refocusing on the essentials. It's a tool that saves you time for what really deserves it.