What Is CRM Software, Exactly?
CRM software is the heart and soul of many modern businesses. CRM software is a catchall term used to describe “Customer Relationship Management” software. There are myriad CRM systems on the market, but there are three primary categories: Operational CRM, Analytical CRM, and Collaborative CRM. Don’t get scared by these long and fancy terms – we’ll go through each one together later on!
CRM software is essential to many different kinds of businesses. It provides businesses with tools for collecting, managing, and utilizing information about their customers. Custom CRM solutions help businesses understand their clients better, cater more effectively to them, build stronger relationships with them, and, in turn, make more sales.
But sometimes – businesses can’t seem to find the right CRM for their expertise, so they heavily rely on out-of-the-box software solutions. That’s shown to significantly slow the business down as it’s not getting the proper care it deserves. Luckily – we have custom CRM solutions here, at Develux. Our specific software is made just for you and your company, with personalization and smart workflow organization already built-in! Save your time and money, and just let us make your business customers’ favorite.
Let’s now get into 3 different types of CRM software – and dive into the ones that are just right for your business.
1. Operational CRM
CRM software is often thought of as a sales tool, but from an Operational perspective, CRM is also about marketing, service, and sales. After all, a company’s relationship with its clients drives its success.
An Operational CRM, for example, can be used to evaluate the effectiveness of marketing campaigns and predict the number of people sales will convert into customers. Operational CRMs also allow you to track problems that customers encounter and provide solutions.
Business leaders use these types of custom CRM to manage their sales pipeline. This type of CRM tracks prospective and current consumers and offers them a better customer experience – and it also improves operational effectiveness by automating tasks such as client follow-up, sales, and marketing.
In this era of cloud-based services, Operational CRMs allow businesses to access records from anywhere. You can track customer interactions, compare customer metrics, and handle tasks quickly and efficiently.
There are 3 types of Operational CRM, and those are:
- Sales automation
- Marketing automation
- Service automation
Sales CRM tracks and analyzes customer interactions and interactions among sales calls, emails, and meetings. It helps you track and record sales opportunities, identify sales trends, and record sales calls, emails, and meetings.
Marketing CRM tracks interactions with leads and customers throughout the marketing cycle. Marketing CRM software helps you nurture leads, organize distribution channels, and report on marketing campaigns.
Service CRM offers support tools and tracks customer interactions and experiences. It helps you identify and record customer service requests, monitor service performance, and view service-related statistics. Its main role is, simply, to keep customers loyal and encourage them to promote your brand.
Who Benefits From This Type of CRM?
Now that we know all there is to know about Operational CRM, here are the main types of businesses that will benefit from these custom CRM software solutions. Operational CRM software is helpful for small businesses, or for companies that don’t have a lot to keep track of. Also, because it’s easy to use, it’s a great choice if you only have a small team that needs to collaborate on customer details.
2. Analytical CRM
Analytical CRM software takes that information and organizes it in a way that allows companies to track and analyze the activities, goals, and progress of sales, marketing, and customer service.
The basic premise of Analytical CRM software is that all data is business data. In Analytical CRM, sales, marketing, and customer service data are all treated the same way. The information on the CRM system that your salespeople are tracking, for example, is just as important to the accounting department as is information on the system that your customer service team is using. Analytical CRM software analyzes data from your CRM custom solutions system and provides you with detailed reports, dashboards, or business intelligence modules that summarize information from your company’s CRM systems.
The types of analyses that analytical CRM software can perform include:
- Sales analysis
- Marketing analysis
- Service analysis
- Pipeline analysis
- Sales forecasting
- Revenue analysis
And so much more. There are also 3 types of Analytical CRM, and those are:
The data warehousing team creates the application logic that links the data to the business rules. The ETL tool runs the data cleansing and data quality checks. And the data warehousing team enforces the business rules.
Data warehouses collect, cleanse, and standardize data. The software components are designed to collect and store data as efficiently as possible. And data warehousing is good at storing information over the long term because as systems add more data, the data warehouse can already contain all the data.
Data mining is the art of turning data into meaningful patterns. It’s particularly relevant to CRM, because CRM is the science of getting answers to questions about your buyers, and CRM software is based on the assumption that your data is your business.
Online Analytical Processing (OLAP)
Online Analytical Processing (OLAP) is a set of techniques used by business organizations to collect, organize, process and analyze data. OLAP software is a solution that provides unified access to data, enabling companies to make decisions regarding budgets, trends, and company’s demands.
Who Benefits From This Type of CRM?
Analytical CRM is most useful to businesses that have already developed a comprehensive sales and marketing plan that they use regularly. The software provides detailed, real-time reports, which allow you to measure individual and team performance, identify strengths and weaknesses, and make adjustments to improve results.
3. Collaborative CRM
A Collaborative CRM software is a CRM solution that is designed to enhance a company’s workflow and customer interaction. These solutions enable companies to retain existing customers, acquire new ones, develop brand loyalty, develop cross-selling opportunities, improve consumer service, and, as a result, improve company profitability. A Collaborative CRM solution allows companies to integrate their existing CRM software with other critical systems, such as email, human resources, finance, and supply chain management. A collaborative CRM software system enables companies to:
- Streamline processes
- Increase operational efficiency
- Improve buyer interactions
- Increase revenue
- Improve profitability
This CRM is also divided into 3 different sets – and those are:
Interaction Management (IM) is a type of CRM software that allows companies to organize and automate the “how” of buyer relationships.
Channel Management is the set of business processes, systems, and procedures that manage an organization’s interactions with external partners. Channel Management extends the concept of CRM to encompass the entire lifecycle of an organization’s relationship with the external partner.
Document Management is a system for managing and storing documents securely. Document Management solutions range from simple archiving to complex, integrated document management systems.
Who Benefits From This Type of CRM?
Companies turn to Collaborative CRM software for different reasons. Some want basic client tracking and reporting; others want comprehensive marketing automation. The basic use of this CRM is to understand buyers and their specific needs.
The reason most entrepreneurs are excited about CRM software is that it makes their business more organized. It gives them a way to keep track of where they are in the sales process, where each of their leads and customers is, and what their next steps should be. This makes it easier to stay in touch with them, to figure out when they’re ready to make a purchase, and to remind them when it’s time to follow up. In other words, CRM software is the future of business – so make sure to have the perfect one for you.