In simple terms, Customer Relationship Management (CRM) is a website application or software that is used to improve customer experience and increase sales. Some people might define the term CRM as a process or a strategy but at the end of the day, the intended meaning is the technology itself.
Example of CRM platforms include Hubspot, Zoho CRM, Salesforce, Netsuite, Bitrix24, Agile CRM, Keap, SAP CRM, Ontraport,
Types of CRM
There are three types of CRM platforms.
Open Source CRM: It is free. Your business’s IT team must download the source code, install, and manage updates from your servers.
On-premise CRM: You need to buy a license and install the CRM software on your company’s servers. It is ideal if you are in a sensitive industry.
Cloud-Based CRM: Data is stored in the seller’s servers. It is subscription-based. You pay according to your usage.
How does a CRM Software work
A CRM software collects a customer’s contact information like email, telephone number, social media profile etc. and uses the collected data for communication.
A CRM software also monitors a customer’s interaction with the business, collects data and use the data for personalized interactions.
Function of CRM
Some of the key functions of CRM platforms include:
- Customer Support
- Marketing Automation
- Sales Management
- Contact Management
Benefits of using CRM Software
The major benefits of using CRM software for running a business include:
Improve customer support: You can use the information collected to personalize communications
Increase Sales: Delivering the right messages to the right person helps in improving business sales
Analytics: Data gathered is important in analyzing business’s progress.
Read also: What is email marketing?