CRM software is a crucial part of any organization since it helps manage customer data and support, consumer interactions, marketing automation, sales, and business information, and handles the relationships between partners, vendors, and employees. As per requirements, if an organization opts for a premium-quality software, it can scale the system as and when the business grows.
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You can even personalize the different types of CRM software so as to gain valuable customer insights and convert this information into valuable, actionable data. Companies can execute the methods of back-end analytics so as to identify business opportunities, by using predictive analytics. One-to-one, personalized customer support and operational changes (based on consumers’ feedback and interactions) go a long way in ensuring the sustaining of your business.
Now, the market is packed with so many different types of CRM software. At times, it becomes confusing that which package you should choose that shall meet your requirements perfectly. This is where we come in. Below are the different types of CRM software, along with their major features and advantages. Go through them and opt for one that fits your budget and needs.
Different Types of CRM Software
Operational CRM Software
Operational CRM software gathers data about all your customers and incorporates them in a single file. This information includes the contact details of your clients, their purchase history, buying behavior, and communication. When you have all the data in one place, you can use it to improve the quality of your service and response rate. Operational systems, among the different types of CRM software, are primarily useful for the sales, marketing, and customer service departments.
Operational CRM helps you in:
- Contact management: With all your contacts on one platform, operational CRM relieves you from keeping track of your leads individually.
- Lead management: Operational CRMs can be used to automate lead scoring. You can easily understand which leads need to be prioritized, which leads are more likely to convert into customers, and who will generate the maximum profits. Therefore, you can use these insights to add a personal touch to your services, targeted at specific leads.
- Sales team automation: Sales tasks often get piled up and go unnoticed if they stay like that over long durations. Operational CRM allocates tasks to your sales team employees, depending on historical analysis.
- Marketing automation: Another important function of operational CRM is the automation of your marketing efforts toward your target customers. For instance, you can use the compiled data to send emails in funnels, curated as per the past interactions of the customer with your company.
Operational CRM is indeed useful when you have a lot of contacts to manage, need insights about consumer activity, scale your email marketing efforts, and avoid manual assignment of tasks.
Analytical CRM Software
Analytical CRM, as the name suggests, is used to compile, organize, and analyze your customer and sales data so that you can make informed business decisions. Some of these data comprise the average timelines for a deal cycle, customer retention rates, and monthly revenue, among others.
Analytical CRM can be used for:
- Data mining: An analytical CRM collects all your data and stores them in a single, easily accessible, and organized platform — which you can analyze anytime. It also utilizes tools such as statistical analysis to find patterns and segment customer information, based on age, area of residence, educational qualifications, gender, purchase history, marital status, etc. Therefore, you can target the right customer base with the exact communication. Again, linear, logistic, and multiple regression tools relieve you from using huge excel sheets to trace sales records.
- Cross-selling benefits: By gathering insights about your customers’ past behavior and buying history, you can use this information for your cross-selling and up-selling opportunities.
- Understanding customers: With exact know-how of your customers wants, needs, and personalities, you can enhance your marketing efforts to serve them better. Personalized campaigns can make a huge difference in retaining consumers and increasing profits.
- Sales forecasting: Analysis of your past data in billing and invoicing details helps you to estimate future demand. It can guide you through maintaining seasonal inventory, sales targets, and long term goals.
If you are confused among the different types of CRM software and are not sure if you should invest in an analytical system, you can get one if you wish to understand your buyers, track sales KPIs, and improve sales and marketing strategies.
Collaborative CRM Software
Collaborative CRM AKA strategic CRM, the third and final category among the different types of CRM software, can share customer information across teams. These teams may include internal and external stakeholders, comprising your departments, suppliers, vendors, and distributors.
The major benefits of collaborative CRM are as follows:
- Interaction management: This type of CRM software helps you to keep track of your company’s interactions with customers. Each customer-facing team will have records of past communications with consumers. And when every department can access these notes, they can provide valuable feedback to one another and discover methods of serving future customers.
- Relationship management: Collaborative CRMs also aid in managing customer relationships, by sharing his/her preferences and goals across all the teams. As a result, buyers will have uniform experiences from any of your board members.
- Document organization: A collaborative CRM, by storing contracts, technical documentation or proposals at the same place, ensures that everybody has access to the files on a single platform.
You can choose a collaborative CRM among the different types of CRM software if you wish to enhance communication between departments, increase customer retention and loyalty, share customer data with all stakeholders, and maintain an organized database.
Now, that you know about the different types of CRM software, which one should you choose? Well, invest in the system that easily integrates with the technology in place, effortlessly migrates contacts and automation from a previous CRM, and reduces the daily workload of your team.