Equal parts strategy and technology, CRM is about using data to understand the needs of customers and improve sales. Its success is dependent on the business developing a clear plan around which to use the CRM tools, and implement that plan across the entire company.
CRM is a tool that allows companies to keep track of data about their customers and prospects, track interactions, automate campaigns and generate reports. It also gives you the ability to communicate with customers and prospects through a variety channels, including telephone, email, text message or other social media platforms.
Although many believe that CRM is a sales tool, the reality is that it can be used by any department in the business. For example, the billing and finance departments can utilize CRM to track commissions, review contracts, and compare sales forecasts with actual revenue. Marketing departments can use it to detect trends to better target customers.
Each time a salesperson interacts with a client or meets a lead or follows up on an existing lead, they generate an abundance of data. This data was traditionally stored on paper media, like laptops and notebooks or in the heads of team members. CRM systems allow this data to be organizedly collected and stored in one location that can be instantly shared with all of the company’s representatives, regardless of the channel they are using to communicate.
The most advanced CRMs currently incorporate AI and machine learning, which can interpret data and provide actionable information for each opportunity. In this way, businesses can improve their customer experience, drive engagement, and improve retention and loyalty.