What are the Two Types of CRM?

Do you own a business working low on customer base? Then, CRM is the perfect way to tackle the problem. Customer Relationship Management is the backbone of all business organizations. It helps them build a strong and healthy relationship with their customers.

Not only this, CRM works towards enhancing sales and improving marketing strategies. It also caters to other business-related needs. But customers are the foremost priority of CRM-based solutions. CRM software knows their needs and offers the desired solutions and experiences suiting them.

Customer Relationship Management is about storing and handling conversational details of the customers. While CRM helps in many ways to all business organizations, the best experience lies in the type of CRM you choose.

Yes, CRM also provides various options to cater to your business needs. It divides into three types: Collaborative, Operational, and Analytical. Each of these CRM solutions comes with various features. They aim to transform businesses for good. Hence, let us discuss them in detail so you can decide which solutions suit your business the best.

Collaborative CRM Systems

As the name suggests, a Collaborative CRM system comes with a collaborative approach.

The aim is to enhance the cooperation among many departments of an organization. It helps them collaborate to offer the most satisfying customer experience. Now you might wonder which departments we are talking about.

Well, a business organization has various departments. They can divide into sales, marketing, and customer support. Besides, other factors are disseminating these departments into even smaller fragments. It can depend on geographical locations, skillsets, channels, products, etc.

A business needs to cater to customer needs. To do that, all the departments must be able to view the updated customer information. Customer information includes the details of each customer interaction with the brand.

A collaborative CRM system employs this collaborative approach. It keeps all the departments updated about everything. So, business organizations can follow past records of customer interactions. So, this lets them provide effective business solutions to their customers.

Operational CRM Systems

The operational CRM system is effective CRM. It assists in streamlining Customer Relationship Management for businesses. It aims to automate the processes associated with Customer Relationship Management.

These are visualization and management tools to track a customer's journey in the brand. It holds a record of every interaction of the customer with the brand. It begins with the customer's first experience with the brand. Also, it goes up to the sales pipeline and real-time experiences of the customers.

The operational CRM systems maintain customer relationships by automating. It includes marketing, sales, and services. It strives towards removing the burden on employees. The load comes from streamlining the CRM processes. So, business organizations having their load shed can focus on improving their solutions.

Analytical CRM Systems

Analytical CRM systems take Customer Relationship Management to the next level. It gives an analytical touch to CRM. It also handles customer data using various digital analysis tools.

Business organizations collect large amounts of data with every customer interaction. It raises a need to handle it. Handling data includes storing or processing them. But it is also about gaining insights from the data to identify trends and patterns.

Data analysis lets you know customers' behavior depending on the brand. The insights gained from the data help businesses change their solutions. It helps offer better customer experiences than ever before.

Choosing the Right CRM Solution for Your Business

All businesses have different CRM requirements. Customer Relationship Management also relies on the structure and functionality of your business. Hence, you must see the goals and objectives of the brand before selecting a suitable CRM. It decides what Customer Relationship Management type can cater well to it. Businesses need more than one type of CRM solution to meet their CRM requirements. 


Collaborative CRMs are responsible for cooperating with various departments of a business organization. Does your business organization include various departments, such as sales, marketing, and services? Then, it is the right choice. It is also true if the departments belong to different geographical locations. Collaborative CRM works best for your organization in such cases.

Collaborative CRM will help you coordinate with different departments. It does so by sharing customer information on a common platform. Moreover, it will be the best approach if most of your customer interactions occur online. It will bring together various aspects of your business to function together. It also enhances the sales and customer base of the organization. But keep the customer information restricted to certain departments. In these situations, you should look out for other CRM methods.


Operational CRM deal with automating the customer relationships of an organization. Hence, it solves the CRM need of all organizations. Businesses needing an automated CRM process use it. So, use operational CRM to automate sales, marketing, and other services.


Analytical CRMs help businesses gain insights from the data. It uses it to change its business solutions. Hence, it works for all business organizations.

To understand customer behavior, you can use this CRM solution.


Customer Relationship management is the backbone of all businesses. It offers to deliver effective business solutions to customers. CRM is all about understanding their needs and behavior. But CRM solutions are of various types. It depends on the way they handle customer relationships. Hence, you can now select the best CRM solution for your organization.

Updated on: 19-Apr-2023


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