www.pega.comCUSTOMER MANAGEMENT SOFTWARE
Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving customer service relationships and assisting in customer retention and driving sales growth.
CRM systems compile customer data across different channels — or points of contact between the customer and the company — which could include the company’s website, telephone, live chat, direct mail, marketing materials and social media. CRM systems can also give customer-facing staff detailed information on customers’ personal information, purchase history, buying preferences and concerns.
Components of CRM
At the most basic level, CRM software consolidates customer information and documents into a single CRM database, so business users can more easily access and manage it.
Over time, many additional functions have been added to CRM systems to make them more useful. Some of these functions include recording various customer interactions over email, phone, social media or other channels; depending on system capabilities, automating various workflow automation processes, such as tasks, calendars and alerts; and giving managers the ability to track performance and productivity based on information logged within the system.
- Marketing automation.CRM tools with marketing automation capabilities can automate repetitive tasks to enhance marketing efforts at different points in the lifecycle. For example, as sales prospects come into the system, it might automatically send the prospects marketing materials, typically via email or social media, with the goal of turning a sales lead into a full-fledged customer.
- Sales force automation.Sales force automation tools track customer interactions and automate certain business functions of the sales cycle that are necessary to follow leads and attract and obtain new customers.
- Contact center automation.Designed to reduce tedious aspects of a contact center agent’s job, contact center automation might include prerecorded audio that assists in customer problem-solving and information dissemination. Various software tools that integrate with the agent’s desktop tools can handle customer requests in order to cut down on the time of calls and to simplify customer service processes.
- Geolocation technology, or location-based services.Some CRM systems include technology that can create geographic marketing campaigns based on customers’ physical locations, sometimes integrating with popular location-based GPS apps. Geolocation technology can also be used as a networking or contact management tool in order to find sales prospects based on a location.
Types of CRM technology
The four main vendors of CRM systems are Salesforce, Microsoft, SAP and Oracle. Other providers are popular among small- to midmarket businesses, but these four tend to be the choice for large corporations. The types of CRM technology offered are as follows:
- On-premises CRM. This system puts the onus of administration, control, security and maintenance of the database and information on the company using the CRM software. With this approach, the company purchases licenses upfront instead of buying yearly subscriptions from a cloud CRM provider. The software resides on the company’s own servers and the user assumes the cost of any upgrades. It also usually requires a prolonged installation process to fully integrate a company’s data. Companies with complex CRM needs might benefit from an on-premises deployment.
- Cloud-based CRM. With cloud-based CRM — also known as SaaS(software as a service) or on-demand CRM — data is stored on an external, remote network that employees can access anytime, anywhere there is an internet connection, sometimes with a third-party service provider overseeing installation and maintenance. The cloud’s quick, relatively easy deployment capabilities appeal to companies with limited technological expertise or resources.
Companies might consider cloud CRM as a more cost-effective option. Vendors such as Sales force charge by the user on a subscription basis and offer the option of monthly or yearly payments.
CRM examples in practice
- Contact center.Traditionally, data intake practices for CRM systems have been the responsibility of sales and marketing departments, as well as contact center agents. Sales and marketing teams procure leads and update the system with information throughout the customer lifecycle, and contact centers gather data and revise customer history records through service calls and technical support interactions.
- Social CRM .Social media in CRM involves businesses engaging customers directly through social media platforms, such as Facebook, Twitter and LinkedIn. Social media presents an open forum for customers to share experiences with a brand, whether they’re airing grievances or promoting products.
To add value to customer interactions on social media, businesses use various social CRM tools that monitor social media conversations — from specific mentions of a brand to the frequency of keywords used — to determine their target audience and which platforms they use. Other tools are designed to analyze social media feedback and address customer queries and issues.
- Mobile CRM. CRM applications built for smartphones and tablets have become a must-have for sales representatives and marketing professionals who want to access customer information and perform tasks when they are not physically in their offices. Cramps take advantage of features that are unique to mobile devices, such as GPS and voice-recognition capabilities, to give sales and marketing employees access to customer information from anywhere.
- Business-to-business (B2B) practices. A CRM system in a B2B environment helps monitor sales as they move through the sales funnel, enabling a business to address any issues that might come up during the process. CRM systems in the B2B market help create more visibility into leads and, therefore, increase efficiency throughout the sales process.
