How CRM Software Works

CRM software help companies create, track, and manage customer relationships. They automate workflows, help customer data analysis, and empower salespeople to succeed.

Good customer relationships are the cornerstone of successful business. However, when information is fragmented between departments (e.g. marketing and sales), tracking and managing customer relationships can lead to missed business opportunities. Hence the need for customer relationship management (CRM) systems that

• Store customer data
• Trace customers’ journey through the marketing and sales funnels
• Automate processes, and
• Manage interactions with customers.

In other words, CRM software or platforms are systems that help companies create, track, and manage customer relationships. By facilitating information flow between departments – and thereby timely follow-up – they foster customer loyalty and contribute to increased revenue.

How CRM software works

CRM software allows marketers and salespeople to manage and analyze relationships with the company’s actual and potential customers. It enables tracking every interaction with the company and it gathers information about the customer. This way, when speaking to customers, the marketer always knows who they are, and sees their history with the company. This makes the interaction more personalized, increases the chances of conversion, and encourages customer trust and loyalty.

CRM system functionalities allow you to track customer-company interactions through various touchpoints, such as:

• Search engines
• Social media
• Contact forms
• Emails
• Phone calls, etc.

The software can automate marketers’ and salespeople’s repetitive tasks, set reminders for important events, and display alerts as necessary. CRM software analytics can also help you assess the efficiency of your marketing and sales efforts from lead generation to deal closure.

Typical features of a CRM software

Off-the-shelf CRM software are usually provided as SaaS solutions, offering businesses a combination of marketing, sales, and customer-service functionalities. They help document such insights as the source of prospects’ visits, their interaction with emails (clicks, opens, or re-opens), and downloads of marketing materials like white papers and case studies. These data help you understand customer needs, and you can respond accordingly. 

Consider the following features:

• Lead management – enter leads into the system, and track and analyze data about them.
• Marketing automation – automate tedious tasks such as sending marketing emails or publish social media posts as scheduled.
• Sales automation – track customer interactions and automate selected business functions of the sales cycle.
• Workflow automation – optimize processes by streamlining workloads.
• Analytics – gain insights into marketing efforts and the quality of the customer experience.
• Artificial intelligence – take advantage of built-in AI capabilities that help automatically recognize patterns leading to successful sales.
• Individualized customer experiences – create personalized and consistent experiences for your potential customers across various marketing channels.

As we have seen, CRM platforms offer functionalities well beyond compiling customer data across different channels and automating workflows. An all-in-one CRM software helps you analyze customer data and empower your sales and customer service reps to succeed. Choose a scalable CRM software that grows with your company and reflects its processes. Learn how CRM software works and how it can help you and get your team started today.