CRM (Customer Relationship Management) refers to a set of strategies that put the customer relationship at the center of marketing activities. With CRM software, data and interactions with new and returning customers are channeled into a single database.
This leads to stronger customer loyalty, more precisely targeted content and in-depth analysis of customer behavior data.
What is CRM?
Although the two are often confused, the definition of CRM is not exactly the same as that of CRM software.
The former is a set of methods for using customer behavior data to improve marketing results and lead generation.
The latter is the tool used to collect all of that data in a single database. But let’s take it one step at a time.
CRM software: what it is and what it’s for
CRM software consists of systems that bring together everything known about new and returning customers. Names, addresses, email contacts, phone numbers and user behavior are unified to give each customer a personalized relationship with the company.
For example, a consumer who receives a newsletter addressed to them by name will be more inclined to open it. If they get a dedicated offer on their birthday, they’ll feel even more valued.
All of this is made possible by software dedicated to Customer Relationship Management.
Integration with social networks
When CRM software is integrated with a brand’s social channels and website, it makes it possible to understand and analyze user behavior.
This can help you manage community sentiment around a new product, find out how customers reach a landing page, and learn what they appreciate about the brand and which core values they identify with.
Mobile content geolocation is another important contribution. A CRM can detect where a user is accessing content from and send them geographically relevant offers.
On-premise or cloud software?
When they first appeared among customer care strategies, CRMs were always proprietary, in-house software, often very expensive and demanding to run.
Today many vendors offer cloud-based CRM software, which means lower costs for the company and easily measurable results in terms of sales and customer retention. In this case, always pay close attention to the vendor’s reliability.
Every company must make sure its customer data is protected and never used in ways that breach current legislation. In European Union countries, the law to comply with is the GDPR (General Data Protection Regulation).
Marketing Automation and Sales Force Automation
CRM software has two main functions:
- Marketing Automation. Automatically sends targeted marketing material (newsletters, offers, sponsored social content). It also lets you track which stage of the buying process each customer is in.
- Sales Force Automation. Lets the company organize and coordinate sales activities, saving a great deal of time and avoiding errors.