Are you Choosing the Right CRM for your Business? 3 Types of CRM Explained

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Are you Choosing the Right CRM for your Business? 3 Types of CRM Explained

Fostering a healthy customer relationship is at the heart of every business. Doing it right can bring you sustainability and increase your brand recall. Companies nowadays invest in CRM software to seamlessly communicate with customers, thus building a better conversational experience.

However, choosing the right CRM software often seems overwhelming. Here, we will be talking about three different types of CRM systems and how to choose the right product that streamlines customer management for your business.

Customer Relationship Management is a Business Imperative in Recent Times

Customer interactions determine business success to a great extent. More than 80% of customers prefer conversational experiences while interacting with brands. In fact, customer journeys nowadays depend on their interactive experience across various channels. 

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Types of CRM- Explained

While the abbreviation translates into Customer Relationship Management, CRM software is a collection of sales, marketing, and CS tools. There are plenty of CRM products in the market, each differs from the other in terms of features and functionality. Based on that CRM tools can be broadly classified into three categories:

  • Operational CRM Systems
  • Collaborative CRM Systems
  • Analytical CRM Systems

Operational CRM Systems

Operational CRM takes care of the buyers’ journeys at every touchpoint. It comes with a variety of tools that helps business gain better visibility of customer journeys. Starting from the first level interaction at the brand’s website to the entire lead management process, operational CRM keeps a tab on the customers’ journey through the sales pipeline and tracks their behaviors throughout. 

A good operational CRM tool comes with automation features for marketing, sales, and services. These three segments are otherwise handled by the employees. Automating these three primary roles frees up a whole lot of time for the employees, and they can invest in tasks that require human intervention. It helps businesses scale up by providing superb customer service.

Features of an Operational CRM 

  • Contact Management: Keeping a track of leads is absolutely hassle-free when it’s automated. With an operational CRM, you can manage the details of your leads from a central platform. The automation feature captures the details as soon as a prospect interacts with your brand. Thus, it’s easier for the team to carry the conversation from any level. It also ensures that no contacts slip off the funnel.
  • Keeping track of leads’ behavior: Operation CRM system can keep a track of the leads’ behavior across their journey. As a result, you can easily decide the scoring capability of any particular lead. You can segregate a high-priority lead, a prospective customer, and the leads spending more time on your website. This way, you will know which leads to nurture by personal touch or automation.
  • Sales automation: With sales automation features, the sales team of a company is assigned tasks based on customer actions and deal value. 
  • Marketing Automation: It helps in effective marketing to your leads. When you already have the contact details of your prospective leads, you can easily add them to your email funnels and update them with new information. Also, it helps differentiate a warm lead from cold ones and marketing accordingly.

Does Your Business Need an Operational CRM?

Businesses that are looking for a more detailed view of the customer lifecycle process will benefit from operational CRM. It saves time on sales and marketing and keeps everything in one place. Consider an operational CRM if you 

  • struggle to keep contact details organized
  • Want to use win probability and lead scoring features
  • assign task manually and want to streamline it
  • want to scale up your email marketing efforts

Collaborative CRM Systems

Collaborative CRMs are named after the work it does. It’s meant for collaboration across teams. This tool helps share customer information across departments, vendors, suppliers, and internal and external stakeholders. 

While operational and analytical CRM can perform the job of a collaborative system, many companies still want to invest in collaborative CRM systems separately. The reason is, collaborative CRM is exclusive to customer service that works for improving customer satisfaction, retention, and acquisition. 

Features of a Collaborative CRM

Interaction tracking: keeping track of every interaction is the primary role of collaborative CRM systems like ConvergeHub. It gives access to customer interactions to every customer-facing team, right from sales to community management. It includes

  • Feedback from the support team on each and every deal
  • Community conversation regarding new products
  • Notes from the sales team to carry out the further interactions 

A collaborative CRM eliminates silos and provides access to information for every team. 

Managing customer relationships: Keeping track of customer interactions across every channel helps in the seamless management of customer relationships. When a new customer arrives, a collaborative CRM helps track their preferences, needs, and goals. It keeps all members of the customer-facing team on the same page, thus enabling them to deliver a more personalized experience.

Document management: Collaborative CRMs take care of your documents. They provide a central platform to store all your documents. It keeps things organized and provides access to every stakeholder so that you don’t need to hunt down the important documents in your local folders.

Does Your Business Need a Collaborative CRM?

Are you struggling to keep every member of your customer support team on the same page? It is quite common if the company has multiple locations with departments providing omnichannel support. A conversational and collaborative system thus comes in handy. It’s a great investment if you 

  • plan to improve communication between departments
  • work on customer retention and loyalty
  • track specific needs and offer personalized service to the customers
  • Share customer data with different stakeholders at different touchpoints
  • plan to align marketing efforts in a personalized manner

Analytical CRM Systems

Analytical CRMs like ConvergeHub empower you with customer data to develop various crucial business insights. It is featured with multiple digital tools that collect a huge volume of data, analyze it and translate it into business insight. With Analytical CRM, you get data from every level of the customer journey. Thus, it’s easier to see and decipher the behavioral trends of the customers, according to which brands can develop their marketing strategies. It helps them decide which leads will translate into customers or subscribers. Analytical CRM gives you every possible information about the average deal cycle, monthly recurring revenue, customer retention rates, and more.

Features of an Analytical CRM 

Data mining: As the name suggests, Analytical CRM works as a data hub. It stores and organizes crucial data in one single database that is easily accessible. It applies statistical analysis to identify behavioral patterns and sales trends in your data and segregates customers accordingly. The purpose is to track the right audience at the right time. 

Upsell and cross-sell opportunities: Brands get an insight into customer behavior from their previous purchase trends. It clearly shows you how to target your leads- upsell or cross-sell.

Constructing buyer persona: Analytical CRM not only captures data and extracts the pieces required for constructing buyer persona. It helps you understand your customers’ needs and preferences and accordingly craft marketing campaigns. It helps brands deliver personalized experiences, which further makes a difference to your bottomline. 

According to a recent study, 93% of the brands using ConvergeHub have exceeded the lead and revenue goals by creating a buyer persona. 87% of the brands have seen an increase in customer retention rate by using the analytical features of the tool. 

Sales forecasting: Most importantly, analytical CRM helps evaluate past sales trends, thus making a great prediction about the future. It can predict a rise and a dip, based on data. Thus, companies are able to decide on their inventory and staffing, and revenue on a seasonal basis. 

Analytical CRM, to say the least, can help companies keep a track of every touchpoint so that it becomes easier to figure out from where the best customers come. Also, you know which of your marketing efforts are creating the best impact and which are not. 

Does Your Business Need an Analytical CRM?

Brands that are presently dealing with a large volume of customers and simultaneously inquiring about the efficiency of their marketing efforts can choose Analytical CRM. It’s a great investment if you 

  • want to identify why customers are not buying your product
  • gather more data on customers’ behavioral trends
  • want to identify revenue-generating touchpoints
  • want to get rid of spreadsheets and manual data mining
  • want to seamlessly track KPIs
  • plan to improve sales based on strategic data

Do You Need All Three?

In recent times, CRM tools are super-effective and each one of them comes with an array of overlapping features. Most of the time, companies invest in Analytical CRM with both operational and collaborative features. The reason is Analytical CRM performs most of the jobs that the other two perform while doing data-based research, identifying customer behavioral trends, and sales trends, deploying automation, and opening doors to new opportunities. 

Things to Remember While Choosing your CRM

Well, you practically have multiple choices when it comes to CRM. However, before you figure out which one should be your product, you need to be sure of your customer relationship strategy. Whether you are an SME or a 100+ enterprise, choosing your CRM should be in line with the following factors. 

  • Ease of installation
  • Hassle-free integration with all other products
  • Payment or subscription model
  • Reporting & security features
  • Ability to scale

The Takeaway Point

Good CX does not depend on good intentions only. In fact, companies need to gather customer data in place to have a clear understanding of what they want. A CRM will only automate your efforts and give you the raw data, while you need to process it to make the most of it. 

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