CRM system refers to a platform that assists organizations with customer relationship management. CRM systems have tools that help create track KPIs, boost revenue and create targeted campaigns. The basic functionalities of the CRM system include dashboards, marketing, and sales tools, and databases used for tracking metrics.
Types of CRM Systems
The three main types of CRM are:
Collaborative CRM is defined as a CRM approach where the customer interaction data of a business is integrated and simultaneously shared to enhance customer loyalty and satisfaction to maximize revenue and profitability.
The main goal for CRMs is to serve your customers better, which means you’ll have to give your employees access to critical information.
An analytical CRM is vital to helping you unlock vast amounts of data you have collected. Once you have done that, then you can search throughout the data and see what is working so far and what is not. The analytical CRM does Online Analytical Processing, data mining, and data warehousing.
The analytical CRM helps you to analyze customer data that was generated by operations CRM to best understand customer’s behavior and get their value to the business. This is helpful to approach the customer with the relevant proposals and information that will cater to their needs.
As its name suggests, the operational CRM helps you facilitate all your operations, especially operations around your customers. All operations that your organization has with your potential and current customers are through an operational CRM system.
Operational CRM covers service, marketing, and sales. These enable your team to deliver top-tier experiences to your customers and streamline tasks. Operational CRMs can help improve workflows and processes by automating routine tasks through service automation software and marketing automation software.
Benefits of Different Types of CRM Systems
The collaborative CRM is beneficial because:
- You can develop a holistic approach to manage your entire customer journey.
- You can improve cross-team communication.
- You can message based on real pain points.
- You can integrate data for a complete view of your customers.
- You can have data-driven interactions with your customers
The analytical CRM is beneficial because:
- You can create detailed buyer personas and customer journeys.
- You can improve customer satisfaction.
- You can boost customer retention rates.
- You can identify weak spots and improve them.
- You can tell the best customers and times to upsell or cross-sell.
- You can grow revenue by scrutinizing what sells and what doesn’t
- You target customers, prospects, and leads with applicable content.
- You can optimize market campaigns.
The operational CRM is beneficial because:
- You can automate recurring activities like assigning leads to the right sales reps and sending meeting reminders.
- You can track critical information like leads to sales KPIs.
- You can give customers a self-service option.
- You can gain insight to boost revenue and sales
- You can manage diverse marketing campaigns.
Whether the CRM system is collaborative, operational, or analytical, they all have vital features and benefits that are key to the customer lifecycle management process. The best system for you will depend on your company’s specific goals and situation.