All about CRM

CRM:
Introduction
Customer relationship management ( CRM ) is a process in which a business or other organization administers its interactions with customers, typically using data analysis to study large amounts of information.

CRM systems compile data from a range of different communication channels, including a company’s website, telephone, email, live chat, marketing materials and more recently, social media. They allow businesses to learn more about their target audiences and how to best cater to their needs, thus retaining customers and driving sales growth. CRM may be used with past, present, or potential customers. The concepts, procedures, and rules that a corporation follows when communicating with its consumers are referred to as CRM. This complete connection covers direct contact with customers, such as sales and service-related operations, forecasting and the analysis of consumer patterns and behaviours, from the perspective of the company

Types of CRM:
Strategic:
Strategic CRM concentrates on the development of a customer-centric business culture. The focus of a business on being customer-centric will translate into an improved CLV.
Operational:
The primary goal of CRM systems is the integration and automation of sales, marketing, and customer support. Therefore, these systems typically have a dashboard that gives an overall view of the three functions of a single customer view, a single page for each customer that a company may have. The dashboard may provide client information, past sales, previous marketing efforts, and more, summarizing all of the relationships between customers and the firm.
Operational CRM is made up of 3 main components: sales force automation, marketing automation, and service automation.
Sales force automation works with all stages in the sales cycle, from initially entering the contact information to converting a prospective client into an actual client.
Marketing automation focuses on easing the overall marketing process to make it more effective and efficient.
Service automation is part of the CRM system that focuses on direct customer service technology

Analytical:
The role of analytical CRM systems is to analyze customer data collected through multiple sources and present it so that business managers can make more informed decisions.
Collaborative:
The third primary aim of CRM systems is to incorporate external stakeholders such as suppliers, vendors, and distributors, and share customer information across groups/departments and organizations.

COMPONENTS OF CRM

        At the most basic level, CRM software consolidates customer information and documents it into a single CRM database so business users can more easily access and manage it.

Over time, many additional functions have been added to CRM systems to make them more useful. Some of these functions include recording various customer interactions over email, phone, social media or other channels: depending on system capabilities, automating various workflow automation processes, such as tasks, calendars and alerts; and giving managers the ability to track the performance and productivity based on information logged within the system.

Marketing automation
Sales force automation
Contact centre automation
Geolocation technology, or location-based services
Workflow automation
Lead management
Human resource management
Analytics
Artificial intelligence
Project management
Integration with the other software

Types of CRM Technology
The four main vendors of CRM systems are Salesforce, Microsoft, SAP, and Oracle. Other providers are popular among small to midsize businesses, but these four tend to be the choice for large corporations. The types of CRM technology offered are as follows:

Cloud-based CRM
With CRM that uses cloud computing, also known as SaaS or on-demand CRM, data is stored on an external, remote network that employees can access anytime, anywhere there is an internet connection, sometimes with a third-party service provider overseeing installation and maintenance. The cloud’s quick relatively easy deployment capabilities appeal to companies with limited technological expertise or resources.

On-premises CRM
This system puts the onus on administration, control, security and maintenance of the database and information on the company using the CRM software. With this approach, the company purchases licences upfront, instead of buying yearly subscriptions from a cloud CRM provider.

Open source CRM
An open-source CRM system makes source code available to the public, enabling companies to make alterations at no cost to the company employing the system. Open-source CRM systems also enable the addition and customization of data links on social media channels, assisting companies looking to improve social CRM practices.

How to choose the right CRM for your small business
Your specific needs for CRM will vary widely based on how your business operates and sells to customers, so you should always take the time to figure out how your strategy will look based on your goals. Here are 4 key questions to ask yourself when evaluating your own needs:
Who will use your CRM tools? Will your CRM tools primarily be used for marketing? By a sales team? Both? Consider everyone in your organization who could benefit from access to customer insights (whether it’s just for visibility, or to use data for a specific purpose) to find a tool that will accommodate what you need.
How much complexity do you need to get started? Keep in mind that you likely won’t build a complex CRM strategy overnight. Find a tool that will allow for a simplified approach, so you can adjust your strategy and add complexity gradually as you learn.
Which marketing channels are you using to talk to your audience? Find a tool that integrates directly with the channels you use most, so that info can quickly be turned into action, and insights are unlikely to get siloed or lost.
Will your CRM scale with you as you grow? Over time, you will find new ways to use your audience reports and automate CRM processes, so it’s important to find a tool that allows you to add this functionality as you’re ready for it. But keep in mind that if there are CRM processes you’ll never need, you don’t want to be paying for (and working around) unnecessary complexity.