CRM 101: What is CRM?
This is a simple definition of CRM.
Who is CRM for?
A CRM system gives everyone — from sales, customer service, business development, recruiting, marketing, or any other line of business — a better way to manage the external interactions and relationships that drive success. A CRM tool lets you store customer and prospect contact information, identify sales opportunities, record service issues, and manage marketing campaigns, all in one central location — and make information about every customer interaction available to anyone at your company who might need it.
With visibility and easy access to data, it's easier to collaborate and increase productivity. Everyone in your company can see how customers have been communicated with, what they’ve bought, when they last purchased, what they paid, and so much more. CRM can help companies of all sizes drive business growth, and it can be especially beneficial to a small business, where teams often need to find ways to do more with less.
Here’s why CRM matters to your business.
Running a business without CRM can cost you real money.
More administration means less time for everything else. An active sales team can generate a flood of data. Reps are out on the road talking to customers, meeting prospects, and finding out valuable information — but all too often this information gets stored in handwritten notes, laptops, or inside the heads of your salespeople.
Details can get lost, meetings are not followed up on promptly, and prioritizing customers can be a matter of guesswork rather than a rigorous exercise based on data. And it can all be compounded if a key salesperson moves on. But it's not just sales that suffers without CRM.
Your customers may be contacting you on a range of different platforms — including phone, email, or social media — asking questions, following up on orders, or contacting you about an issue. Without a common platform for customer interactions, communications can be missed or lost in the flood of information, leading to a slow or unsatisfactory response.
Even if you do successfully collect all this data, you’re faced with the challenge of making sense of it. It can be difficult to extract intelligence. Reports can be hard to create, and they can waste valuable selling time. Managers can lose sight of what their teams are up to, which means that they can’t offer the right support at the right time — while a lack of oversight can also result in a lack of accountability from the team.
What does a CRM system do?
A customer relationship management (CRM) solution helps you find new customers, win their business, and keep them happy by organizing customer and prospect information in a way that helps you build stronger relationships with them and grow your business faster. CRM systems start by collecting a customer's website, email, telephone, and social media data — and more — across multiple sources and channels. It may also automatically pull in other information, such as recent news about the company's activity, and it can store personal details, such as a client's personal preferences on communications. The CRM tool organizes this information to give you a complete record of individuals and companies overall, so you can better understand your relationship over time.
With a consolidated view of every prospect and customer, a CRM system is then used to manage day-to-day customer activities and interactions. From a marketing perspective, this means engaging your prospects with the right message, at the right time, through targeted digital marketing campaigns and journeys. For sales, reps can work faster and smarter with a clear view of their pipeline and accomplish more accurate forecasting. Commerce teams can quickly launch and scale ecommerce — from online orders to curbside pickup — for their consumer shoppers (B2C commerce) and business buyers (B2B commerce). And customer service agents can respond to customer needs on any channel — from home, in the field, or in the office.
Here’s how a CRM system can help your business today.
1. Connect Your Business Silos.
Fifty-six percent of business leaders admit that organizational silos negatively impact the quality of their customers’ and prospects’ experiences. Information silos are a huge problem, but a shared platform and process for managing customer relationships across functions can really help. In fact, 80% of business leaders from the same study say they are increasingly using their company’s CRM as a single source of truth about their customers across departments.
With a shared CRM, employees are empowered with the right tools and data to manage customer relationships more effectively across lines of business, and they have visibility into customer interactions from other departments. They can more effectively and efficiently work together to enable connected customer experiences.
Base: 484 director-level and above decision makers with responsibility for CRM strategy and technology investments.
Source: A commissioned study conducted by Forrester Consulting on behalf of Salesforce, August 2019.
2. Make Improvements To Your Bottom Line.
For Customer Service:
For Digital Commerce:
For IT and Technology Leaders:
Source: Salesforce Customer Success Survey conducted from 2017–2019. Survey respondents were 3,384 Salesforce customers randomly selected. Responses per question vary.
3. Identify And Categorize Leads.
A CRM system can help you identify and add new leads easily and quickly, and categorize them accurately. By focusing on the right leads, sales can prioritize the opportunities that will close deals, and marketing can identify leads that need more nurturing and prime them to become quality leads.
With complete, accurate, centrally held information about clients and prospects, sales and marketing can focus their attention and energy on the right clients.
Sell smarter and grow your revenue from anywhere.
4. Increase Customer Lifetime Value.
By understanding your customers better, cross-selling and upselling opportunities become clear — giving you the chance to win new business from existing customers. This helps you to grow lasting, more profitable relationships with your customers.
With better visibility, you’ll also be able to keep your customers happy with better service. Happy customers are likely to become repeat customers, and repeat customers spend more — up to 33% more according to some studies.
5. Offer Better Customer Support.
6. Improve Products And Services.
7. Be Ready For Whatever’s Next.
Here’s what cloud-based CRM offers your business.
Work from anywhere.
CRM can be quick and easy to implement. A cloud-based system doesn’t need special installation, and there’s no hardware to set up, keeping IT costs low and removing the headache of version control and update schedules.
Generally, cloud-based CRM systems are priced on the number of users who access the system and the kinds of features needed. This can be very cost-effective in terms of capital outlay, and is also extremely flexible — enabling you to scale up and add more people as your business grows. Salesforce is flexible in terms of functionality, too — you’re not paying for any features that are not useful to you.
A cloud-based CRM platform offers you:
- Faster deployment
- Automatic software updates
- Cost-effectiveness and scalability
- The ability to work from anywhere, on any device
- Increased collaboration
Learn what it takes to change mindsets, connect business silos, and recenter around your customer.
Read this study, based on data from hundreds of business leaders, to understand why companies are taking steps to eliminate departmental silos, learn the two most critical factors for improving customer satisfaction with CRM, and gain insights on CRM use today and how businesses are investing in it to achieve customer-centricity tomorrow.