The development of digital technologies and software provided businesses with advanced solutions for their workflows. Modern software engineers offer multifunctional platforms for improving business workflows and increasing productivity and efficiency. CRM software is one such example.
CRM (customer relationship management) is advanced software for business owners. It allows for coping with a wide spectrum of tasks, which results in improved performance. Such platforms come as powerful tools for managing the workflow. Their scope of functionalities includes the following features:
- Streamline business processes. By integrating CRM solutions into their workflows, business owners get a strategic assistant that simplifies business running.
- Automate routine tasks and speed up their processing. By entrusting repeated duties to AI platforms, it’s possible to reallocate the work time more effectively and achieve higher productivity.
- Store and process data. CRM systems also come as trusted storage of valuable data about clients. The software is capable of data collection, segmentation, processing, and analysis, which allows for tackling a wide scope of business tasks.
- Provide centralized access and restrict it to unauthorized users. It’s possible to set access permissions, limiting the circle of authorized users to access particular information.
These features ensure software popularity and wide application in the business environment. The integration of CRM software allows for improving marketing strategies and achieving high personalization due to data analytics. Thus, the benefit of CRM software for business is obvious.
Depending on the sphere of application and purpose, 6 different types of CRM software are provided on the market to fit the demands of all businesses. Below, we’re going to consider them in detail.
Operational CRM
This solution is aimed at dealing with such aspects, as sales, marketing, and customer service management. Thus, this aspect of CRM software is responsible for processing any customer-related information. The analysis of such data allows for achieving improved customer interaction, which highly affects revenues, consumer loyalty, and brand recognition. An increased level of interaction with potential leads is achieved due to the following strategies:
- personalization of offers to different categories of customers;
- customization of offers, depending on a client’s preferences and demands;
- responsive customer support services for prompt reaction;
- advanced services for tracking consumer experiences and collecting feedback.
These strategies allow for collecting up-to-date information about consumers and their demands, improving marketing campaigns by offering personalized products, etc. The application of these features results in increased sales and marketing efficiency, which allows for embracing a wider target audience and achieving higher consumer reach.
The brightest examples of operational CRM platforms are Salesforce and Microsoft Dynamics 365.
Collaborative CRM
Unlike other types of CRM programs, these platforms provide interaction between different departments of the company to improve customer service. Within this class, the following features are pointed out:
- role-based access permission;
- centralized access to a database;
- enhanced security of corporate information.
The blend of these features contributes to collaboration and shared access to customer information. Centralized access allows for updating data in real time and making sure that all users observe updated information. Role-based access permissions and restrictions help minimize the risk of data theft and eliminate information redundancy. These features allow for the creation of a healthy working environment and high efficiency.
The most popular examples of this CRM are HubSpot COM and Copper.
Analytical CRM
As it becomes clear from its name, such systems are targeted at a comprehensible analysis of customer data to improve business decisions. Analytical CRM is responsible for collecting and analyzing information about consumers (their contacts, demands, needs, feedback, etc.). Based on the obtained data, such systems can create reports and forecasts, which other types of CRM software do not offer. The main benefits of these platforms are:
- A deep understanding of customer behavior.
- Improved marketing strategies.
This software provides businesses with valuable insights that help marketers understand their target audience better and create a consumer profile.
The best examples of such platforms are Zoho Analytics and SAP CRM.
Strategic CRM
This type of software focuses on building strategies that are based on customer interaction. Within this class, the key functions include the development of customer retention strategies and loyalty programs. Such software is aimed at developing marketing campaigns that prevent leads from leaving a company after the first experience. The analysis of this data helps:
- decrease the number of lost leads;
- understand customer demands better;
- eliminate product shortcomings;
- improve the quality of services.
The main advantages of such platforms include an increase in the lifetime value of the customer and an increase in loyalty. Based on the business’s needs, holders can pick suitable products that will help detect and eliminate shortcomings in a marketing campaign and improve consumer loyalty and satisfaction. Thus, such systems help hook leads and find ways to make them stay with the brand for long.
The brightest examples of strategic systems are Oracle CRM and SAP Customer Experience.
Cloud-based VS On-premise CRM
According to the location, there are 2 types of customer relationship management systems. Namely, these are:
- Cloud-Based CRM. These are CRM systems hosted in the cloud and accessible via the Internet. They are accessible from anywhere in the world, scalable, and can be updated automatically. If you want to learn more about the specifics of a cloud-based CRM system, you can read the article, where this type of CRM software is discussed in detail.
- On-Premise CRM. Such systems are installed on the company’s local servers. They have a high level of security and can work without the Internet. However, they lag in terms of accessibility if compared to cloud-based solutions.
Both types find their applications in the business sphere. Depending on the business’s needs, they should select either improved security or accessibility.
Nowadays, it’s impossible to imagine a well-functioning business that does not use CRM software. It’s impossible to develop long-term business strategies and achieve high perspectives without the implementation of such advanced systems into the workflow. The modern market offers a wide selection of various types of CRM. Thus, every company can pick an appropriate solution that satisfies its specific business demands.