CRM is one of the most effective strategies in boosting your business revenue through building better relationships with your customers.
This article explains the meaning of CRM, what it does and doesn't, and the benefits it brings to your businesses.
CRM, or "Customer Relationship Management", is a software system that manages all customer relationships. The goal of CRM is to build and nurture stronger relationships with your leads and clients. Using a CRM system increases work efficiency, enhances sales teams' performance, makes your customers more satisfied, and boosts sales.
Companies used to keep their contact information in spreadsheets, emails, and business cards. In modern businesses that constantly evolve and scale, these basic contact-keeping strategies aren't sufficient.
CRM allows businesses to have a centralized database where all customer information, data, and insights are easily accessible.
CRM ensures that all your teams in different departments (marketing, sales, customer service, management, finance and accounting, and HR) are in sync and work towards the same goals.
All size businesses (small, medium and enterprises) benefit from using CRM software. CRM systems can boost revenue by 41% per sales rep and improve lead conversion rates by over 300%, states Finances Online. CRM generates about $8.71 in revenue for every dollar spent, according to Nucleus research.
The term Customer Relationship Management can be understood in three ways:
Overall, CRM is a big-picture strategy and a set of tools to implement that strategy. Through building customer relationships and strengthening the bonds, CRM software drives sales and grows your businesses.
While CRM is often all-in-once customer-centric systems, it's important to note that there are many things that CRM software is not designed to do:
Here are some key functions of a CRM system:
Not everything can be handled by a CRM. It's important to note that CRM tools cannot replace human effort in building customer relationships.
Human connection is crucial in building sales and customer service, and while CRM will help you get on track, it alone will not do the job for you.
In addition, CRM doesn't understand nuanced customer emotions or sentiment behind each communication.
Another important thing to note is that CRM doesn't maintain data by itself. The data you get out from a CRM system depends on the quality of data you put in it.
Thirdly, implementing a CRM is not a magic bullet for sales growth. Businesses need to have proper sales strategies and well-trained staff to use CRM effectively.
Here are the main benefits of using CRM software:
CRM market is saturated. Here are some of the most popular CRM examples businesses use worldwide:
CRM stands for Customer Relationship Management, a system for managing all customer relationships to nurture stronger connections, leading to increased efficiency, better sales performance, more satisfied customers, and a sales boost.
Traditional methods like spreadsheets for contact information are inadequate for today's evolving and scaling businesses. CRM offers a centralized database for customer info, ensuring all teams are aligned.
Beneficial for all business sizes, CRM systems can notably boost revenue by 41% per sales rep and improve lead conversion rates significantly.
CRM main functions include storing and managing customer data, tracking customer interactions on all channels, managing sales pipelines and lead progression, automating tasks, generating reports, improving customer service.
While CRM is an all-rounder system, it cannot substitute the human effort in relationship building. Moreover, CRM implementation alone won't guarantee sales growth.
More information about CRM and the best CRM tools for your business can be found in our in-depth CRM guide (up-to-date 2024 edition.)
Customer Relationship Management (CRM) is a strategy that companies use to manage interactions with customers and potential customers.
CRM tools support marketing, sales, and customer service functions and processes for your business. The purpose of your CRM tool is to organize, record, and enable action with customer data and help track and advance customers along every stage of the buying journey.
The learning curve ranges from one CRM system to another. Powerful multichannel CRMs like Salesforce can take longer to learn than Pipedrive or Zoho CRM, which cater to small and medium-sized businesses. However, most CRMs focus on ease of use and user-friendly customer experience.
No, you don't have to implement a CRM system if you don't want to. But statistics show that virtually all businesses benefit from using CRM software. By intelligently storing and managing your customers' information, a CRM system increases the number of leads coming in, helping your marketing team find new customers faster. Overall, CRM helps you close more deals faster.
G2 Rating | Price | Best for | Standout feature | Con | |
---|---|---|---|---|---|
4.9 star star star star star | $30/mo $75/mo $2,999/mo | Large, distributed sales teams | AI evaluation precision, gamified KPIs | Lack of tracking system | |
4.6 star star star star star-half | Not publicly available | Sales operations and finance teams | Powerful configurability | Limited training resources and complex to navigate | |
4.4 star star star star star-half | Not publicly available | Mid-market and enterprise businesses | Comprehensive incentive management | Potentially high cost and steep learning curve | |
4.7 star star star star star-half | $15/user/mo $40/user/mo Enterprise: custom price | Complex sales structures and businesses of all sizes | Complex sales structures and businesses of all sizes | Steep learning curve | |
4.6 star star star star star-half | Not publicly available | Collaborative teams | Connected planning | Complexity and steep learning curve | |
4.6 star star star star star-half | Not publicly available | Companies with complex sales structures | Complex incentive compensation management (ICM) with high efficiency and accuracy | Complexity for smaller teams and potentially high costs | |
4.7 star star star star star-half | Not publicly available | Companies who want to automate commission calculations and payouts | Simplicity and ease of use | Lack of features like redirection | |
4.7 star star star star star-half | $30/user/mo $35/user/mo Custom: upon request | Businesses that need a comprehensive and user-friendly sales compensation management software | Ease of use and adoption | Lack of ability to configure the product based on user needs | |
4.8 star star star star star-half | Not publicly available | Companies with modern sales culture and businesses who want real-time insights | A built-in dispute management and real-time visibility | Users say it works slowly, customer support is slow | |
4.9 star star star star star | $30/user/mo $50/user/mo | Smaller sales teams | Powerful automation | Lesser user base and average user interface | |
4.7 star star star star star-half | Not publicly available | Companies with scalable needs | Automated Commission Calculations | Lack of filtering by date, no mobile app |
PRM Tool | Rating | Feature | Pro | Con | Mobile App | Integrations | Free Plan | Pricing |
---|---|---|---|---|---|---|---|---|
4.65 star star star star star-half | Org-wide alignment | User-friendly layout and database | Suboptimal as a personal CRM | square-check | Lack of tracking system | square-check | Team: $20/month Business: $45/month | |
4.7 star star star star star-half | Social Media Integration | Easy contact data collection | No marketing/sales features | square-check | Lack of tracking system | square-xmark 7-day trial | $12/month | |
4.75 star star star star star-half | Block Functions | High customization capability | Not a dedicated CRM | square-check | Limited | square-check | Plus: €7.50/month Business: €14/month | |
N/A | Open-source | Open-source flexibility | Requires extensive manual input | square-xmark | Limited | square-check Self-hosted | $9/month or $90/year | |
3.1 star star star | Simple iOS app | Ideal for non-tech-savvy users | iPhone only | square-check iOS only | Limited | square-xmark 1-month trial | $1.49/month or $14.99/month | |
3.6 star star star star-half | Smart Contact Management | Feature-rich and flexible | Reported bugs | square-check | Rich | square-xmark 7-day trial | Premium: $13.99/month Teams: $17.99/month | |
4.4 star star star star star-half | Customizable Interface | Customizable for teamwork | Pricey for personal use | square-check | Rich | square-xmark | Standard: $24/member Premium: $39/member | |
4.7 star star star star star-half | Integrated Calling | Integrated Calling | Too sales-oriented & pricey | square-check | Rich | square-xmark 14-day trial | Startup: $59/user/month Professional: $329/user/month | |
4.8 star star star star star | Business Card Scanning | Business Card Scanning | Mobile only | square-check | Limited | square-check | $9.99/month | |
4.45 star star star star star-half | 160+ app integrations | Comprehensive integrations | No free app version | square-check | Rich | square-xmark 14-day trial | $29.90/month or $24.90/month (billed annually) |
Capterra Rating | Free Trial | Free Plan | Starting Price (excluding the free plan) | Maximum Price (for the most expensive plan) | Best for | |
---|---|---|---|---|---|---|
4.5 star star star star star-half | square-check 14-day | square-check | €15/month/seat billed annually | €792/month/3 seats billed annually + €45/month for each extra seat | Versatility and free plan | |
4.2 star star star star | square-check 30-day | square-xmark But it offers reduced price to authorised nonprofit organisations | €25/user/month | €500/user/month billed annually (includes Einstein AI) | Best overall operational CRM | |
4.3 star star star star star-half | square-xmark | square-check Limited to 3 users | Comprehensive incentive management | €52/user/month billed annually | Small-medium businesses and automation | |
4.5 star star star star star-half | square-check 14-day | square-xmark | €14/seat/month billed annually | €99/seat/month billed annually | Sales teams and ease of use | |
4.1 star star star star | square-xmark | square-check Limited 10 users | $9.99/user/month billed annually | $64.99/user/month billed annually | Free plan for very small teams up to 10 |
CRM goal | Increase the sales conversion rate for qualified leads from marketing automation campaigns by 10% in the next 6 months. | ||||
SMART Breakdown | 1. Specific: It targets a specific area (conversion rate) for a defined segment (qualified leads from marketing automation). | 2. Measurable: The desired increase (10%) is a clear metric, and the timeframe (6 months) allows for progress tracking. | 3. Achievable: A 10% increase is possible based on historical data and potential improvements. | 4. Relevant: Boosting sales from marketing efforts aligns with overall business objectives. | 5. Time-bound: The 6-month timeframe creates urgency and a clear target date. |
Actions | Step 1: Refine lead qualification criteria to ensure high-quality leads are nurtured through marketing automation. | Step 2: Personalize marketing automation campaigns based on lead demographics, interests, and behavior. | Step 3: Develop targeted landing pages with clear calls to action for qualified leads. | Step 4: Implement lead scoring to prioritize high-potential leads for sales follow-up. | Step 5: Track and analyze campaign performance to identify areas for optimization. |
Outcomes | Increased sales and revenue | Improved marketing automation ROI | Marketing and sales alignment | Data-driven marketing optimization |