CRMs vary, but in general they about managing the relationship with all the customers past, present and future ! That means
- managing Campaigns / Events – Businesses attract and convert new leads through campaigns and events
- managing Contacts (anyone who has shown an interest in the business, especially customers)
- managing Leads (people who might buy something) and Prospects (people who are buying something)
- automating simple tasks (sending standard emails, reminding you to follow up with prospects, etc)
- managing Sales Tasks (eg tracking when a user phones a prospect or sends out a quote or a draft contract)
- managing Opportunities (deals in progress)
- helping your Sales and Marketing team to work together more efficiently, by collecting everything you know about a customer in one system
Some of them also measure the performance of Sales and Marketing including
- the performance of individuals
- the performance of each team
By collecting data, objective decisions can be taken about staff, process and technology as well as campaigns, offers, products and services, support, channel partners and customers
When a CRM is well implemented, it improves the effectiveness of Sales and Marketing almost immediately and obviously. This means that your business makes more sales, often of higher value and many of the customers buy more often. But the most successful CRM projects are intended to increase customer retention.
So CRMs manage all the information about your business’s “order winning machine” and allow you to improve performance steadily. Some organisations achieve an improvement on customer retention of 20% or more!