CRM

CRM Process Explained: The Key Steps to Follow

Liucija Adomaite
LAST UPDATED
July 12, 2024
READING TIME
7 min.

Want to turn casual browsers into loyal customers? The well-planned CRM process can help you.

It’s essentially your roadmap to building lasting customer relationships and driving business growth.

Discover the five essential steps and practical tips to maximize your CRM's potential.

What is the CRM process?

The CRM process is a systematic approach used by businesses to manage their interactions with customers throughout the entire customer lifecycle.

It encompasses strategies and activities aimed at attracting, engaging, converting, and retaining customers to build long-lasting relationships.

The CRM process involves various stages, from initial lead generation and qualification to nurturing leads, closing deals, providing ongoing customer support, and fostering loyalty.

It relies on utilizing customer data and technology to personalize interactions, anticipate customer needs, and deliver a seamless experience across all touchpoints.

The ultimate goal of the CRM process is to enhance customer satisfaction, increase sales, and drive sustainable business growth.

What are the key steps in the CRM process?

Here are 5 essential steps that are crucial for successful CRM process:

1 Step: Lead Generation and Qualification.

This initial stage involves identifying and attracting potential customers (leads).

It includes activities like marketing campaigns, content creation, and social media outreach.

Once leads are generated, they need to be qualified based on their interest, fit, and potential value to the business.

This step is crucial because it fills your sales pipeline with potential customers.

Our tip: Not all leads are equal. Focus on quality over quantity. Qualify leads based on their interest, budget, and decision-making authority.

Example: A software company creates a targeted LinkedIn ad campaign to attract leads who are interested in project management solutions. They use a lead scoring system to prioritize leads based on their engagement level and demographic information.

2 Step: Lead Nurturing.

Not all leads are ready to buy immediately.

Lead nurturing involves building relationships with potential customers through targeted communication and personalized content. It can include blog posts, webinars, social media engagement and follow-up calls.

Lead nurturing moves leads through the sales funnel by providing relevant information and addressing their pain points.

This step is important because it educates and builds trust with leads, increasing the likelihood of conversion.

Our tip: Make sure you understand your buyer's journey and tailor your nurturing content to their specific stage and interests.

Example: A financial advisor sends a series of educational emails to leads about retirement planning, providing valuable information and showcasing their expertise.

3 Step: Sales Conversion.

This is the stage where qualified leads are converted into paying customers.

Sales representatives engage with prospects, address their concerns, and guide them towards making a purchase decision.

It can be done through product demos, sales presentations, negotiations and so on.

Effective communication, negotiation, and closing techniques are crucial in this step.

Sales conversion step is where revenue is generated for the business.

Our tip: Listen to your prospects' needs, address their concerns, and build a strong relationship based on trust and value.

Example: A sales representative for a manufacturing company gives a personalized product demo to a prospect, highlighting how their product can solve the prospect's specific challenges.

4 Step: Customer Onboarding and Support.

Once a sale is made, the focus shifts to onboarding new customers and providing excellent customer support.

This step is all about welcoming new customers and providing them with the resources and support they need to succeed.

This involves ensuring a smooth transition, educating customers about the product or service, and addressing any issues or questions they may have.

It can be done through welcome emails, training materials, tutorials, customer support channels (phone, email, chat), and more.

This step is important because essentially it ensures customer satisfaction and reduces churn.

Our tip: A smooth onboarding process sets the stage for a positive customer experience and encourages repeat business.

Example: A SaaS company provides new customers with a comprehensive onboarding guide and access to a dedicated support team to help them get started and answer any questions.

5 Step: Customer Retention and Loyalty.

The final stage focuses on retaining existing customers and building long-term loyalty.

This involves providing ongoing support, delivering exceptional customer service, offering loyalty programs or rewards, and gathering feedback to continuously improve the customer experience.

Personalized communication, loyalty programs, exclusive offers, customer feedback surveys are essential to make sure you succeed in this step.

Generally, t's more cost-effective to retain existing customers than to acquire new ones. Moreover, loyal customers often become advocates for your brand.

Our tip: Focus on building long-term relationships based on trust, value, and exceptional customer service.

Example: An e-commerce company sends personalized product recommendations to customers based on their purchase history and offers exclusive discounts to loyal customers.

Data analysis is key part of your CRM process

Assessing the success of your CRM strategy requires compiling data from various sources, including software tools, customer surveys, and other gathered information.

That’s why you need to keep up to date with your CRM reports.

A CRM report sorts your CRM data ways that are relevant to you and enables you to make data-driven and strategic decisions.

By analyzing trends within this data, you can fine-tune your current CRM approach and identify areas for future enhancements.

When your CRM process is informed by data-driven insights, you can easier build positive customer interactions based upon past successes.

How to make the CRM process easy and effective?

Here are some practical tips you want to use to make sure you get the most out of the CRM process:

  1. Choose the right CRM for your needs: Don't overcomplicate things with unnecessary features. Focus on what your business truly needs.
  2. Train your team thoroughly to make sure everyone understands how to use the CRM effectively.
  3. Keep your data clean and up-to-date: Inaccurate data leads to wasted time and missed opportunities.
  4. Integrate your CRM with other tools: Connect your CRM to your email, calendar, and other essential tools for seamless data flow.
  5. Personalize customer interactions: Use CRM data to tailor your communications and offer relevant solutions.
  6. Segment your customers: Group customers based on their characteristics and preferences to target your efforts.
  7. Use automation: Automate repetitive tasks like data entry, email campaigns, and follow-ups.
  8. Track and analyze key metrics: Monitor your CRM data to identify trends, successes, and areas for improvement.
  9. Regularly review and refine your CRM process: Your CRM should evolve as your business grows and changes.
  10. Foster a customer-centric culture: Make customer satisfaction a priority at every stage of the CRM process.

Key Takeaways

The CRM process is a systematic approach to managing customer relationships throughout their lifecycle, encompassing lead generation, nurturing, conversion, onboarding/support, and retention.

Analyzing CRM data through reports is crucial for data-driven decision-making and optimizing strategies.

To ensure an effective CRM process, choose the right system, prioritize data quality, integrate with other tools, personalize communication, and focus on customer satisfaction.

By doing so, businesses can build stronger customer relationships, drive sales growth, and achieve long-term success.

Liucija Adomaite
Liucija Adomaite is a viral content writer and organic traffic expert on a mission to help turn ambitious businesses into big names.
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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
ERP vs. CRM
ERP
CRM
Summary
Backbone of a business's internal operations.
Backbone of customer-centric interactions and operations.
Goal
To centralize and streamline core business processes in a company.
To increase customer experience, satisfaction and loyalty, and boost sales.
Focus
Internal operations and processes across departments (finance, accounting, inventory, supply chain, HR, and sales).
All interactions with leads and customers.
Manages
Internal business data like financial data, inventory levels, production details, supply chain, HR info.
All customer data like contact info, purchase history, communication history, customer preferences and more.
Users
Finance, accounting, operations, supply chain, and HR departments.
Customer-facing teams like sales, marketing, and customer service.
Benefits
Streamlines operations, improves data accuracy, enhances decision-making, boosts collaboration, increases productivity.
Improves customer relationships, increases sales, strengthens customer service, personalizes marketing campaigns, provides insights.
Price
$150 per user per year on average.
$10 to $30 per user per month on average.
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
Table
CDP Software
CRM Software
Approach
Data-centric
Customer-centric
Focus
Interactions across various channels and touchpoints, both online and offline.
Sales, marketing, and customer service interactions.
Functionality
Automatically collects, organizes, tags, and makes data available in real-time.
Helps businesses track customer interactions, sales pipelines, prospects, and service requests.
Goals
Personalized customer experiences across all channels.
Better customer relationships, streamlined processes, and improved profitability.
Benefits
Data integration, management, and accessibility, allowing for detailed analysis and segmentation.
Better communication within teams and with customers by organizing information about customer interactions and history.
Data Handling
Handles both identified and anonymous data, stitches together various data points.
Deals primarily with identified customer data.
Use Cases
Personalized marketing campaigns, targeted advertising, content customization across multiple channels.
Managing campaigns and leads, enhancing customer service, providing better customer support, increasing customer satisfaction and loyalty.
Examples
Insider, Bloomreach, Salesforce Marketing Cloud CDP
HubSpot, Salesforce Sales Cloud Lightning Professional, and Zoho CRM
CRM
Free plan
Best feature
Best for
Con
1. HubSpot CRM
square-check
Sales automation
Sales teams
Up to 1,000 contacts
2. Insightly
square-check
Custom fields
Basic needs
Not enough info about the free plan
3. Agile CRM
square-check
Deal and sales pipeline tracking
Small teams
Up to 10 users
4. Zoho CRM
square-check
Lead and contact management
Businesses of all sizes
Limited to 3 users
5. ClickUp
square-check
Unlimited tasks and unlimited members
Personal use
Up to 100MB storage
6. EngageBay
square-check
Live chat
Small and midsize enterprises
Up to 1,000 branded emails per month
7. Bitrix24
square-check
Unlimited users and 5 scrum teams
Big teams
Up to 5GB of cloud storage
8. FreshSales
square-check
Easy to use and simple setup
Beginners
Up to 3 users
9. Mailchimp
square-check
Very beginner friendly
Marketing teams
Send up to 500 branded emails per month
Type of Affiliate Marketing
Unattached
Related
Involved
Format
Paid advertising
Social media or YouTube channels
Dedicated website or blog
Focus
Quick income
Your niche
Your audience
Engagement with your audience
square-xmark
square-check
square-check
square-check
square-check
Very close connection with your audience
Pro
Little effort
Higher credibility thanks to your niche
Long-lasting and scalable
Con
Paid ads cost a lot
Potential for bias since you don’t use the thing you promote
Require time, effort, and dedication

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