What is a customer relationship management (CRM) system and who needs it?

December 30, 2020

What is a customer relationship management (CRM) system and who needs it?

What is a customer relationship management (CRM) system and who needs it

First: What is the field of Customer Relationship Management?

Customer Relationship Management (CRM) is a marketing technique for managing all of your company’s relationships and interactions with existing clients and potential clients, with the goal of improving business relationships and growing your business.

CRM system helps companies in many things, including:

  • Maintaining contact with customers and achieving their satisfaction.
  • Simplify the purchasing process.
  • Improve profitability.

When people talk about CRM, they usually refer to the “CRM system”.

It is a tool that helps with contact management, sales management, agent productivity, and more.

CRM tools can be used to manage customer relationships by tracking the entire customer life cycle, which includes:

  • Marketing.
  • Sales.
  • Digital Commerce.
  • Customer service interactions.

A CRM solution helps you focus on your organization’s relationships with individuals (whether they are customers, service users, colleagues, or suppliers) throughout your relationship cycle with them, including:

  • Find new clients.
  • And win their business.
  • Provides additional support and services throughout the relationship.

Second: CRM basics:

CRMs are generally designed to simplify and improve customer interaction, the sales process, and the running of marketing campaigns.

This is done by:

  • Improve efficiencies across the workflow.
  • Follow up the sales flow.
  • Automate tasks.
  • Data analysis.

The robust CRM strategy provides an all-in-one solution for managing voice, chat, and email hotspots for your team.

Meaning, they track leads, customer needs, offers, and conversions in one place, help optimize your website and run ad campaigns.

All of this improves the mechanism behind your business and dramatically increases visibility for your team, your customer base, and your broader audience.

Keeping track of all that data makes task automation one of the most important benefits that a CRM system has to offer today.

By letting machine learning and analytics take the burden off, you save time and effort and keep yourself from getting overwhelmed with tasks.

Placing phone calls within your CRM platform automatically generates data by specifying the actual time, date, who placed the call, and more.

By doing so, you will be able to automatically track old and new clients, and schedule follow-up operations with a central contact information base.

Click-to-Call is a cross-platform functionality that makes calling easy from anywhere, making your business more flexible, and saving an incredible amount of money on phone bills.

Email integration also simplifies the sales process from your inbox, allowing you to organize leads, appointments, contacts, and sync information from Gmail to your CRM.

In addition, create automatic follow-up reminders to close more deals.

Meanwhile, new developments in natural language processing and machine learning are making customer relationship management better at recording and converting phone conversations into actionable items so that no customer details are forgotten.

Third: How does the CRM system work?

A Customer Relationship Management (CRM) system helps you find new customers, win their business and keep them happy by organizing customer information and expectations in a way that helps you build stronger relationships with them and grow your business faster.

CRM systems get started by gathering data and information from customer websites, social media, e-mail, and voice calls across multiple sources and channels.

  • It may also automatically pull other information, such as recent news about company activity.
  • It can also store personal details, such as a customer’s personal preferences in communications.
  • The CRM tool organizes this information to provide you with a complete record of individuals and companies in general so that you (over time) can better understand your relationship with them.
  • This is done through a unified presentation for each potential customer and permanent customer, after which the CRM system is used to manage the daily activities and interactions of customers.
  • From a marketing perspective, it means engaging your audience with the right message, at the right time, through targeted digital marketing campaigns.
  • As for sales, reps can work faster and smarter with a clear view of their product line and more accurate forecasting.
  • Commerce teams can also launch and scale up e-commerce more quickly for consumer shoppers (B2C commerce) and business owners (B2B).
  • Customer service agents can respond to customer needs on any channel (from home or in the office).
  • The CRM platform can also connect to other business applications that help develop customer relationships.

Fourth: Types of customer relationship management systems:

CRM solutions often fall into one of the three types of CRMs which we will discuss in more detail here.

Each comes with its own set of shared capabilities and benefits, so it’s a good idea to get an overview of what these systems offer so that business owners can choose the one that works best for them.

First: operational CRM:

This type of CRM is centered around facilitating your customer-surrounding operations

integrating sales and marketing data about the customer, and displaying it in a single dashboard

that shows the relationships between this data and translates it into meaningful and purposeful information.

Every interaction your brand does with existing and potential customers gets easier with operational CRM.

It covers three main areas:

  • Sales.
  • Marketing.
  • The service.

This is to simplify tasks and enable your teams to provide first-class customer experiences.

This means It is the most common option.

Operational CRM features:

  1. Sales automation:

    Operational CRM contains tools that address many aspects of the sales process.

    It can distribute potential customers to salespeople, and give them insight into which leads are worth following by recording some key points.

    This aspect focuses on gathering the customer’s purchasing information, starting from the moment of negotiating with him, until converting him into a potential customer, and then succeeding in convincing him to convert into an actual client.

    Here, the systems collect information about the efforts of sales representatives, the marketing methods that have proven effective, in addition to the factors that influenced the customer’s buying decision (whether in terms of speed or whether he took time to think).Sales automation

    It also handles the time-consuming task of creating records for every new contract, allowing sales reps to spend time selling.

    And on that; CRM operational will have a “content repository” for storing and reusing commonly used documents as proposals.

    Operational CRMs also help improve operations and workflow by:

    • Automate routine tasks.
    • Schedule meetings.
    • Transfer leads to workflows to generate valuable sales reports.
  2. Marketing automation:

    Although they may serve as stand-alone solutions, marketing automation tools are often integrated into CRMs, and they are another essential part of operational CRMs.

    Marketing automation tools do many tasks, like:

    • Run campaigns to generate new leads.
    • Supporting existing leads to become real sales-ready customers.
    • Maintaining existing clients.

    Automating these processes means they can be more efficient and productive.

    Moreover, CRM operational lets you set up complex email campaign sequences.

    Once a campaign is built, everything runs automatically thanks to event-driven marketing, with every new action from a lead or existing customer triggering a response from the system.Marketing automation

    And you may have interacted with such a campaign without realizing it, for example:

    If you purchased a new book to download to your device you may receive a follow-up email containing recommendations for similar books.

    This is event-based marketing in action.

    These sequences can be simple (like a welcome email for new customers) or complex (like a multi-stage sequence with dozens of possible paths depending on how the customer interacts (or does not) interact with each new message).

    And we can conclude, that the brand focuses here on permanently communicating with the current audience, gaining, and strengthening its loyalty, and in parallel, using effective means of attraction to target a new segment of the audience.

    In order to achieve this goal, companies work to use all marketing means that suit their audience and mission, from e-mails, social media pages, and websites, to television advertisements, attendance in evening programs, and participation in various events.

  3. Service automation:

The CRM operational system also helps you automate customer service, and develop services that are offered to the public by:

  • Monitor audience interaction with services.
  • Responding to complaints that are submitted.
  • Resorting to technology to give additional value to the public, such as improving after-sales service with customers, providing quick responses to the most common problems facing the audience, or converting the customer into a direct communication channel to solve any problem they face.

One of the main ways to do this is to give your customers self-service options.

This covers things like:

  • Set up automatic online payment.
  • Schedule appointments from phones.

They are simple, beautiful, and expected things, but only possible if you have an existing operational CRM.

You can also automate the service by creating a help center or knowledge base, where customers can go first to answer their questions.


Chatbots are becoming more popular and they can be the first line of communication in your customer service process.

What are the benefits of operational CRM?

  • Track critical information from leads, as well as sales key performance indicators.
  • Gain new insights to boost sales and revenues, such as finding the best opportunities for cross-selling and increasing sales.
  • Automate repetitive activities such as sending meeting reminders, or assigning leads to the right sales representatives.
  • Managing a group of different marketing campaigns.
  • Giving customers the option of self-service.

Who are the users most in need of the operational CRM?

Actually, operational CRM is good for any type of business.

It facilitates the three primary areas of customer interaction (marketing, sales, and service).

For this reason, it is especially useful for companies with a high concentration of customers.

It is also useful for any business that wants to simplify workflow, organize data, and reduce the time spent on doing repetitive manual tasks.

Second: Analytical CRM:

At its core, CRM is nothing more than a database filled with large amounts of data from all over your business, such as:

  • Where do potential clients come from?
  • Who from the customers are in preparation?
  • What are the tickets and dates currently open?
  • How many purchases are there for each product or service? Etc.

Of course, storing this data is great, but it is not enough!

It will do you nothing if you cannot use this information to improve your business.

Analytics CRM is the key by which you can unlock the vast amounts of data you have collected, delve into the story the data tells to continue doing what works, and improve what is not sufficient.

Analytical CRM features:

  1. Data storage:

    It is the starting point with Analytical CRM.

    It may sound complicated, but simply a data warehouse is a central place

    where you can consolidate and store data from a variety of sources.

    You can think of it as a way to collect, access, and organize all of the data generated by each department that deals with your customers.

    Once you have the data in one central repository, you can run the analysis and generate the reports you want.

  2. Data mining:

    starts as soon as you have a bunch of it and want to analyze it.

    Data mining is a bit complex, but its simple definition is that it is a process you can use to understand your data and transform it from raw information into useful insights.

    It contains a number of technologies, such as:

    • Pairing.
    • Classification.
    • Discover deviations that allow you to find patterns.
    • Assign meaning to the data.

    For example, you can use taxonomy to create customer segments based on their common features.

    Among these features:

    • Age.
    • The product they bought.
    • How they find your company (Facebook ad, Google search, etc.)

    crm features

  3. Online Analytical Processing (OLAP: Online Analytical Processing):

According to the official definition, OLAP is a powerful data discovery technology, including:

  • Unlimited report viewing capabilities.
  • Complex Analytical Calculations.
  • Forecasting a “what if” scenario for planning (budget and forecast).

It forms the basis for business intelligence tools that allow you to divide and arrange data sets so that you have sufficient knowledge of them before taking action.

The central part of OLAP is the forecasting of potential.

The ability to think and act on different scenarios, and to predict future needs has a ripple effect on a business.

Rather than relying on guesswork, you can make decisions based on data.

What are the benefits of Analytical CRM?

If you use Analytics CRM, it will give you extremely rich insights, and enable you to:

  • To achieve customer satisfaction.
  • Knowing the best times and the best customers for cross-selling or for increasing sales.
  • Increase customer retention rates.
  • Target potential clients, and clients in all prospects, with content appropriate to their needs.
  • Increase revenue by analyzing what is being sold and what is not.
  • Identifying weaknesses and working to improve them.
  • Create detailed customer analyses and buyer personas.
  • Improving marketing campaigns.

Who are the users most in need of Analytics CRM?

If you are just starting out with CRM and don’t have a lot of data to review, a CRM option with strong analytical capabilities might not be the best option.

If you have data to analyze, and you want (or need) to disclose it, Analytics CRM is a good option.

It is useful for those looking to make informed decisions when building business strategies.

They want to know why some of their techniques have not worked, or they want to gain a deeper understanding of clients.

Furthermore, the more data you have, the more important it is to consider using Analytics CRM.

Third: Collaborative CRM:

Also referred to as strategic CRMs, this type of CRM is all about making communication and collaboration more efficient across your teams.

Techopedia defines it as an approach to customer relationship management, in which customer interaction data for an organization is combined and shared simultaneously to enhance customer satisfaction, gain loyalty, and maximize profitability and revenue.

Collaborative CRM is also called CCRM not only for internal purposes.

Its primary goal is to provide better service to your customers, and the way to do this is by giving your teams access to important information.

This also means that it includes causes and goals similar to operational CRM.

Collaborative CRM features:

The two main features in these types of CRM software are:

  • Interaction management.
  • Channel management.

The focus of Interaction Management is on the interactions between your company and customers.

This feature allows you to record all the touchpoints that the actual or potential customer has with your brand so that you have a comprehensive view of this interaction.

Once you have this insight, you can map out each customer’s personal experience, and understand how, why, and where they interact with your company.

From there, you can make improvements and make decisions based on facts rather than guesses.

For example; If you discover that customers keep coming to you with the same issue, you can highlight this in your marketing content.

Within interaction management, there are tools that allow you to group contacts based on various criteria, improve interactions and filter results, and get more accurate offers.

As for “managing channels”, clients have a large number of channels that they can choose to contact, such as social media, e-mail, phone, and others.

In addition, your goal should be to meet them on their preferred channels.

And “channel management” makes this possible at every stage, whether it is a potential customer contacting for more information, or a customer calling the help desk to solve a problem.

Additional features for Collaborative CRM:

For large organizations, the channel management concept can extend to managing an ecosystem for partners, suppliers, and other parties, via a Partner Relationship Management (PRM) solution.

You’re more likely to find this functionality in larger productions like Oracle Siebel and Salesforce.

 Collaborative CRM

Collaborative CRM also has capabilities that revolve around improving internal communications, including:

  • Activity flows for individuals, teams, contact records, and deals.
  • Video conferencing tools.
  • Integrations with business communication platforms and messaging apps like Hangouts and Slack, as well as document management tools like Dropbox and Google Drive.
  • Working groups on project management.

What are the benefits of Collaborative CRM?

  • Improve communication between the team.
  • Integrated data for a more complete offer to your customers.
  • Convenient customer support via their favorite channels.
  • Data-based interactions with clients.
  • A holistic approach to managing the entire customer journey.
  • Effective messaging based on addressing real vulnerabilities.

Who are the users most in need of collaborative CRM?

Businesses that rely heavily on cross-departmental communications can gain a lot from collaborative CRM, as companies that need to track customers across multiple channels (especially on the digital side).

It is also useful for companies that want to increase retention, gain loyalty, or gain a better understanding of their customers so that they can provide content that is more effective.


The role of Analytical Relationship Management intersects with the cooperative role, as it mainly works to reach results that support other marketing sectors, so it plays a supportive role in increasing the sales movement in the company.

If these systems are satisfied with their analytical role only, without working on converting these results into information for the benefit of other departments, then they have performed their theoretical role only, and no one has benefited from their effective impact on the growth and development of the company.

Fifth: How do I choose the right type of customer relationship management system?

The different types of CRMs have unique features and strengths, and this may prompt you to ask: “How does this affect my company? And which of them is best suited to follow my business?”

What if you want an analytical CRM to understand your data, but you also need an operational CRM to help simplify and automate tasks?

If you are worried that you will need to implement multiple systems just to get the level of functionality you need, you can eliminate this fear.

In fact, CRMs are powerful customer relationship management platforms, and many CRM systems (such as Salesforce or SugarCRM) cover every functionality a business needs.

The main difference is that some of them specialize more in one area (Analytical CRM, for example).

It is therefore not a question of choosing to gain analytical advantages at the expense of losing communication tools.

What you need to do is determine which major is most important to your needs

and know which area requires you to possess deeper capabilities.

With that in mind, how do you know which solution is right for you?

It is not an easy choice, and you should not take it quickly.

Therefore, here’s a list of what you can do to ensure you make a strong decision, as well as some resources to make the process easier for you.

Choosing the Right CRM

  • Assess your needs by developing your requirements checklist that can help you decide if you need a specific type of CRM, and what it is.
  • Be aware of different types of CRM needs depending on your industry, especially if it is a small sector such as nonprofits.
  • Make comparisons between different products.
  • Ask a lot of questions about your company, suppliers, and the solutions you’re interested in.
  • Submit requests for proposals to assist with research (not a necessary option, but it may be useful).

Choosing the right CRM system can create a good world for your business.

Because you owe it to yourself and your clients to have a suitable system never rush to make your decision, choose wisely, and always take your overarching goals into consideration so that you do not get distracted from them and make benefit in the end.

Sixth: Who needs a CRM system?

The CRM system gives everyone a better way to manage the interactions and external relationships that drive success.

Everyone can benefit from better organization, centralized task management, and contemporary AI tools, as this automation makes work faster and better with less time and effort.

The CRM tool allows:

  • Store customer contact information.
  • Expectations.
  • Identify sales opportunities.
  • Recording service problems.
  • Marketing campaigns management.

It is logical for anyone to invest in a precise tool that puts all of his operations in one central location, and allows him to access all his information, data, tasks, and workflow processes while moving through cloud services and other interactions that clients make or anyone in the company needs.

With easy access to and data visibility, collaboration becomes easier, and productivity increases.

Anyone in your company can see how to communicate with customers, what they bought, when they last bought, what price they paid, and much more.

CRM can help companies of all sizes drive business growth, and it can be especially beneficial to small businesses that often need to find ways to get more done with fewer resources.

At the same time, there is no doubt that online commercial competition will continue to increase, and therefore a well-thought-out CRM can give your organization the additional automation advantage that allows your company to overcome its hurdles, eliminating repetitive tasks so that the human working part can exploit its strengths in completing other tasks.

Seventh: The purpose of using customer management systems CRMs for commercial activities:

CRM is the largest and fastest-growing enterprise application software category, and global spending on CRM is expected to reach $ 114.4 billion by 2027.

If you want your business to survive, you need a customer-centric future strategy

that enables your business with the right technology.

You have sales, business, and profitability goals, but getting up-to-date, reliable information to achieve this can be difficult.

So how will the many data streams from sales, customer service, marketing, and social media monitoring translate into useful business information?

  • First: Improving Customer Service:

    A CRM system can give you a clear overview of your customers, and enable you to see everything in one place via a simple and customizable dashboard that can inform you of a customer’s past history with you, the status of their orders, any outstanding customer service issues and more.

    You can also choose to include information from your leads and actual customers’ general activity on social media (what they like and dislike, what they say and share about you or your competitors), and create a profile for each customer you do business with.

    And you’ll be able to address issues with best practices and with less effort to improve customer loyalty.

  • Second: Increase in sales:

    Marketers can use a CRM solution to manage campaigns and improve sales, drive customer experiences with a data-driven approach, better understand the upcoming sales pipeline or forecast, and automate tasks making forecasting simpler and more accurate.

    You will also have a clear view of each opportunity or potential customer, showing you a clear path from inquiries to sales.

    And CRM gives you access to all of your customer-facing voice, chat, social media, and email hotspots in one place.

    You will strike more deals by building a proven and repeatable sales process, delivering the right message on the right channel at just the right time.

    The biggest gains in productivity and in making a shift for the entire company to focus on customers can come from going beyond customer relationship management as just a sales and marketing tool, and integrating it into all stages of the business (from finance to customer services to supply chain management).

    This helps ensure that customer needs are at the forefront of business processes and innovation cycles.

  • Third: customer support, service, and keeping more of them:

    Although CRM systems are traditionally used as sales and marketing tools, customer service and support are an essential segment of CRM and an important piece in managing an overall customer relationship.

    Here, the CRM platform allows you to manage queries across all channels without losing track and provides sales, service, and marketing with a single view for the customer to inform their activities and address their issues.

    The ability to connect these three functions, and the teams that work on them, on a single platform with one view of the customer, is invaluable to deliver relevant and connected experiences.

    Customer retention rates are critical to a company’s success, and their discomfort is a major obstacle to business growth.

  • Fourth: Better Analytics:

    CRM tools can analyze impressions, support, and automate customers’ service, and share to dramatically improve their retention by letting human agents participate in solving their problems.

    Analysis tools that take care of the customer’s life cycle can automatically appear for you while a problem occurs, so you can quickly and accurately identify and address problem points.

    CRM analytics tools make your data available, clear, and relevant to your business needs.

    It can be said, that all sales data, financing data, and marketing data flow into CRM to become visual metrics, with data stored and extracted for understanding and the primary benefit of customer acquisition and retention and better data management.

  • Fifth: higher efficiency:

    Having all major daily business functions in one place improves workflow, easier team collaboration, and better project management.

    Task automation eliminates slow and useless work and gives more time to the cognitive tasks that humans prefer to do.

    Dashboards and analytics will help you gain new and broad insights

    about your business and improve all types of business processes.

  • Sixth: Better Knowledge Sharing:

    Miscommunication and lack of information transmission are a major waste of time and effort.

    While collaborative CRM tools can simplify your teamwork by allowing you to build a knowledge base, create best practices for workflows, and allow remote communication between team members.

  • Seventh: More Transparency:

    CRM allows you to foster greater transparency in your organization by assigning tasks, demonstrating action, defining exactly what it is, and who is doing or participating in it.

    And if your main concern is sales, you can benefit from individual sales agents’ performance tracking, as CRM allows everyone in your organization to gain insight into your business processes, enhancing mutual understanding and cooperation.

Eighth: The 5 most important customer relationship management systems:

Customer relationship management software is the best way to keep in touch with clients, especially now.

Customer relationship management (CRM) systems have proven crucial to the growth of companies in recent years. They serve as repositories for companies to keep information about their customers, as well as for sales teams that need to track expectations.

They are invaluable tools for identifying information about customers.

And here came the CRM marketplace full of solutions (for both large and small businesses), and trying to figure out which one would be best for you almost became difficult.

Here are the best CRM solutions available.

First: Salesforce :

Salesforce is perhaps the most popular CRM in the world,

and it has earned this recognition after offering a bunch of features that most businesses need.

The app can be used for everything (from sales to customer service).

It allows you to track customers, make proposals and quotes

use artificial intelligence to get more information about ready-to-buy customers and their reasons.

Salesforce also features marketing automation features and a built-in e-commerce feature that enables you to track your digital sales.

The best part is Salesforce can be integrated with a large number of 3G applications.

Bear in mind that Salesforce can be quite pricey, depending on what your company needs.

It may start from $ 25 per user per month.

Second:  Freshsales:

Freshsales includes everything able to assist your team in identifying and tracking leads to building your business.

It has the tools to integrate customer information and access that data wherever you go.

But it also comes with advanced artificial intelligence

that can record leads and tell you which leads are most likely to turn into permanent customers.

Freshsales features third-party integrations that allow it to work with the services and software you already use in the office.

They are priced to attract companies of all sizes.

However, this integration is not complete compared to what Salesforce offers to large companies.

But keep in mind that Freshsales is a newer, less complicated

costly option than Salesforce, and it starts at $ 12 per user per month.

Third: Zoho CRM :

Zoho CRM has proven itself as one of the best options for new CRM businesses.

It starts at $ 12 per user per month, and it might be one of the best tools.

It features a wide range of tools, including sales force automation, redundant task automation, and process management to keep the sales force working more effectively.

Add that to analytics support, and the ability to anticipate the leads

that will convert into perennial customers and increase your chances of sales.

Zoho CRM can also be integrated with the third-party services you already use.

And with multi-channel support, working via phone, text message, and email will be easy.

Fourth: HubSpot CRM :

If you want a free CRM, HubSpot CRM is the solution.

Designed for sales and marketing teams alike, this service includes the ability to gain real-time insight

into your customers, what they are hoping to buy, and why.

For marketing teams, HubSpot CRM is designed to help companies

acquire new customers and convert them into lifelong customers who achieve steady sales opportunities.

HubSpot CRM includes a large number of important features, such as customer data capture forms, ad management, and chatbot integration.

And the best part is that you can do everything without programming or coding.

Fifth: Sell Zendesk :

Zendesk has proven itself as a useful customer service management system.

Sell offers a CRM solution for your sales force, featuring a fully integrated customer

warehouse tool, allowing you to gain insight into what customers

are buying, and equip your sales team with the information they need to complete sales.

features a well-designed interface to quickly see the status of customer interactions, and it can be integrated with third-party services.

This service allows you to interact with customers in a number of ways

including phone calls and text messages, and call analytics tells you how your sales team is doing.

Best for companies who already use Zendesk, and want a comprehensive view of customer relationships across sales and customer service.

Ninth: Benefits of Cloud-Based CRM for Your Company:

CRM and the cloud computing revolution have changed everything.

Perhaps the most recent development in CRM systems is the move to the cloud

after freeing it from the need to install software on thousands of desktop computers and mobile devices.

Organizations around the world are disclosing the benefits of transferring data, programs, and services to a secure online environment, including:

  • Work from anywhere, on any device.
  • Lower costs.
  • Faster diffusion and scalability.
  • Automatic software updates.
  • Increase cooperation.


Running a business without CRM can cost you a lot of money and time but more management means less time and cost.

Regardless of which types of CRM tools are most important to your company you can only be sure of one thing, is that using the right system

will help you attract your potential customers, convert them into permanent customers, retain them, and serve them better.

Today’s CRM solutions are more open and can be integrated with your favorite business tools

such as document signing, accounting, billing, and surveys so that information flows in both directions to give you a truly integrated view of your customer’s activities.

A new generation of CRM goes even further, as built-in intelligence and artificial intelligence automate administrative tasks such as data entry, directing a lead or service case so that you can save time for more valuable activities.

your customers, predict what they will feel and behave, and find new opportunities

that may be absent in your current business data.