The word "CRM" has been everywhere lately. If you still wonder what's the actual meaning of it, this article is for you. Today, we explain the meaning of CRM in a simple and comprehensive way so that there are no questions left.
What is the simple meaning of CRM?
The meaning of CRM is simple, and it lies in the word itself–it's all about customers.
Customer Relationship Management (CRM) is a strategy that companies use to manage interactions with customers and leads.
What do people mean when they say CRM?
The term "CRM" is usually used to refer to a Customer Relationship Management software that companies use to manage all customer interactions.
CRM software is a simple, flexible and highly customizable dashboard that give you a full 360-degree view of your customers.
CRM software centralizes customer information, automates tasks, and provides insights to improve customer relationships.
Using a CRM system increases work efficiency, enhances sales teams' performance, makes your customers more satisfied, and boosts revenue.
How does CRM work?
These days, most CRMs are notoriously powerful software tools that are all-rounder when it comes to their functions.
A CRM system is a central place where businesses can store customer and prospect data, track customer interactions, and share this information with all the departments.
Most CRM systems can:
- Store and manage customer data
- Track customer interactions
- Manage sales pipelines
- Automate manual tasks
- Improve customer service
- Generate reports and insights
- Provide valuable data for data-driven decisions
Who benefits from using CRM the most?
Any businesses (small, medium-sized and even enterprises) can benefit from using a CRM tool, but these teams will benefit the most:
- Sales teams
- Marketing teams
- Finance and accounting teams
- Supply chain departments
- Customer support
- HR
What are the types of CRM?
The three types of CRM are analytical, operational, and collaborative.
Analytical CRM (like Salesforce Einstein, HubSpot Marketing Analytics, and Zoho Analytics) uses data as the foundation of the platform.
Operational CRM (like HubSpot, Zoho and Salesforce) focuses on automating workflows.
Collaborative CRM (like Salesforce, ClickUp) enhances teamwork across all teams and departments and builds a unified customer view.
Most of CRMs offer a combination of these features that support marketing, sales, and customer service functions and processes for your business.
How does a CRM drive sales?
CRM streamlines the entire sales pipeline so your sales team can close more deals faster with less effort.
CRM also automates most daily manual tasks that eat up your agents' time and leave them more time to work on customers and leads.
CRM gives your teams valuable data about who your customers are, their pain points, and when they are most likely to buy your product or service.
How much does a CRM cost?
CRM price depends on how complex the software is and how many users will use it.
The average price for a full-featured plan from a top CRM is $67 per user per month based on the prices for the top CRMs. Overall, CRM prices can range from about $15 to over $300 monthly per user.
Before committing, it's best to evaluate your budget carefully and consider the features you need the most.
Key Takeaways
In broad terms, Customer Relationship Management (CRM) refers to the principles, practices, and guidelines that an organization follows when interacting with its customers.
In business, CRM refers to software that companies use to manage their customer data to build better relationships with them and boost sales.
Find out everything you need to know about CRM in our in-depth guide (2024 edition).
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