Types of CRM and how to choose the best one for your business

CRM is often divided into three groups based on its capabilities. Following are various types of CRM

Operational CRM

The main goal of this type of CRM is to generate leads, convert them into contacts, collect all necessary information, and provide service to customers during their whole lifecycle. Operational CRMs help businesses streamline their client engagement operations. They give you the tools you need to visualize better and manage the entire client experience, even if it has a lot of touchpoints. Automation functions are standard in operational CRM systems. Marketing automation, sales automation, and service automation relieve your staff of some labor they would otherwise have to do.

Sales Automation − An organization's sales process can be automated with the help of sales automation. The primary purpose of sales automation is to Establish a standard for obtaining new clients and managing existing ones inside a business. It arranges data in such a way that the company may better meet client needs and enhance sales.

Marketing Automation − The main goal of marketing automation is to figure out how to sell items and approach potential customers in the most effective way possible. Campaign management is a key component of marketing automation. It allows businesses to choose the most effective channel(s) for reaching out to potential customers (emails, phone calls, face-to-face meetings, social media ads, etc.).

Service Automation − By providing the highest quality of service and establishing solid relationships. It comprises issue management for resolving customer issues, customer call management for handling incoming/outgoing calls, and service label management for tracking service quality using key performance indicators.

Collaborative CRM systems

Collaborative CRM, also known as Strategic CRM, allows an organization's multiple business divisions, such as sales, marketing, technical, and support, to share customer information. Collaborative CRM enables all groups to work toward a single goal: to improve the quality of customer service in order to gain loyalty and attract new consumers to increase sales. Each person they interact with has access to a history of all previous interactions with the consumer, allowing them to rapidly consult and understand any pertinent information.

The fundamental features of collaborative CRMs are twofold −

• Providing everyone with up-to-date information via a single platform across departments and locations.

• Making it simple for individuals to find the information they require when they require it.

Businesses with multiple departments that are currently struggling to keep everyone on the same page will benefit from collaborative CRMs. This is especially true for businesses with various locations and Omni channel assistance.

Collaboration CRM has two main components: interaction management and channel management. The first logs all client interactions, including what was said and how it was said (email, face-to-face, social media, etc.) and any notes about the customer. The insights gathered through interaction management are used by channel management to determine which media to use to communicate with which customer.

Analytical CRM systems

An analytical CRM includes tools that let you use the data you already have to discover patterns in your customers' behavior. You may better understand what processes lead to the most successful sales, which promote customer retention, and what the most typical customer problems are using this information. Sales, marketing, and service automation are all part of the operational CRM process.

Analytical CRMs compile data from a range of sources to reveal patterns that would otherwise be undetectable to the naked eye. This enables firms to recognize, comprehend, and profit from client trends and behavior. The information gathered can be used to increase lead generation and conversion, create more effective marketing campaigns, and improve customer service. It can also aid pipeline analysis, sales forecasting, budgeting, and reporting responsibilities.

CRM's Fundamental Components

The financial return that CRM can provide is undoubtedly one of the key drivers of its meteoric growth. Better customer experiences lead to higher customer retention and loyalty, which leads to higher top-line revenue and profitability for the organization. On the other hand, CRM programs necessitate a well-coordinated and disciplined approach to be successful. CRM implementations can fail if they don't have a strategic goal and a roadmap to back them up.

For your CRM activities to be successful, two basic components — philosophical and functional — must be designed and performed in harmony.

Making customer knowledge and insights the cornerstone for your firm is the philosophical component of CRM. It includes topics such as −

• Strategy
• Culture
• Vision
• Positioning
• Strategy and support for a loyalty program

The functional component of your CRM strategy relates to a variety of marketing, operational, organizational, and technological initiatives that make it work.

• Data governance and management
• Customer reporting, as well as direct marketing
• Analyzing customer data
• Customer surveys

How to choose the best one?

In most cases, firms will use multiple CRM systems. In fact, if you use more than one form of CRM, you might be able to build synergies. Your aims and goals will determine the best CRM recipe for you.

• Understanding your company's needs.

• Investigate the various forms of customer relationship management (CRM) systems.

• Examine the CRM capabilities.

• Consider the CRM features, cost/pricing.

• Do vendor research before putting the software through its paces.

CRM programs come in a variety of shapes and sizes, each with its own set of features and benefits. So, before establishing a CRM system, a company must determine its long-term goals and strategies.