CRM 101: Customer Relationship Management

Discover the basics of CRM by scouring through our introductory guide

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CRM 101 Customer Relationship Management
CRMNews Analysis

Published: February 1, 2022

Rebekah Carter

There are few tools more valuable in the CX landscape than the CRM. Designed to simplify the process of tracking and improving complex customer relationships, CRM technology is at the heart of countless sales and service strategies.

Customer Relationship Management technology is so crucial to the success of the modern business, that experts predict the market will reach a value of $96.39 billion by 2027.

As the needs of customers continue to evolve, and the journeys your clients take become more multi-faceted and complex, the right CRM solution could be the key to outshining your competition. Here’s everything you need to know about the CRM market today.

What is a CRM System and How Does it Work?

The term “CRM” refers to “Customer Relationship Management”. While there are many aspects involved in managing a customer relationship, most people talking about CRM will be referencing CRM technology. With this software, business leaders can curate and aggregate data from multiple points in the customer journey, to map the path to purchase and improve CX.

CRM solutions make the otherwise overwhelming process of building relationships with clients through multiple conversations and touchpoints more manageable. The technology is common in the contact centre, but it also appears frequently in the toolkits of service providers, sales teams, helpdesk management groups, and so on.

So, how exactly does the technology work? Find out by watching the video below, or keep on reading!

CRM systems start by collecting as much information about individual customers as possible, across a range of sources and channels. This information helps to create profiles about clients, complete with their email addresses, website information, social media data, and even their previous purchases.

After consolidating all of your data into one view, the CRM allows business owners to access valuable records of individuals and audience segments, to help build better relationships over time. From a marketing perspective, the solution can help to form a better understanding of a customer to ensure you send prospects the right message. From a sales perspective, a CRM can help reps work faster and more effectively with a clear view of the purchasing pipeline.

CRM Trends

Demand for Customer Relationship Management tools is only continuing to rise as the customer experience landscape grows more complex. Currently, around 91% of companies with 10 or more employees are already using CRM solutions to enhance the customer journey. All of these companies are looking for ways to make their CRM solutions more innovative.

Some of the most compelling CRM trends to watch right now are:

  • Integrations: As companies search for a more end-to-end view of the customer journey, integrations are crucial. Today’s CRM technology can often connect with a host of existing tools in the workplace, from the contact centre environment to the tools team members use to collaborate over complex client issues. The demand for more extensive integrations will only continue going forward, particularly as agents and sales teams continue to operate in hybrid environments where they need access to simple and streamlined tools.
  • Artificial Intelligence: Artificial Intelligence represents an exciting solution for customer service, allowing companies to access insights into their audience on a much deeper level. Grandview Research believes the market for AI in CRM solutions will be worth around $734 billion by 2027, marking a CAGR of 42.2%. AI will allow companies to spot trends in CRM data more accurately and open the door for virtual assistants who can help agents to deliver unforgettable experiences to customers.
  • Automation: AI also paves the way for another significant trend in the CRM marketplace – in which robotic processes can take over repetitive tasks for human agents. Automation in the CRM landscape can make it easier for companies to collect and sort through data without a lot of administrative work for human employees. Automation can also be a fantastic tool when it comes to things like sending reminders to check up on customer interactions, mechanising desktop processes, and enhancing contact centre routing.  
  • IoT: In recent years, IoT technology has begun to play a more significant part in the development of CRM innovations. From smart home devices to cybersecurity scanners, the number of IoT devices worldwide is growing all the time. In the business world, these smart appliances and tools may be able to gather additional information about the customer journey and even help business leaders to develop proactive approaches to customer service.
  • Increasing sophistication: Now the customer journey is more complex than ever, the CRM also needs to be equally advanced. Increasingly, companies are looking for more impressive features, like omnichannel interaction recording and tracking, contact management, schedule, reminder/creation, and even monitoring for the sales pipeline. The CRM is rapidly becoming a crucial central database for the CX environment, and it needs to be both sophisticated and accessible to thrive.

CRM Events

CRM technology, like many of the components of the growing CX landscape, is often involved in several worldwide events, designed to help individuals and business leaders better understand the customer journey. CRM Events can be an excellent opportunity for business buyers who want to explore the latest CRM solutions, innovations, and CX tools.

We’d recommend checking out some of the biggest events, like the Microsoft Dynamics events hosted each year, the CRM Summit, and the Digital Customer Experience Summit to help drive a better strategy for CRM buying.

CRM Vendor Comparisons

In an environment where every company knows customer experience is the most significant differentiating factor in their arsenal, there’s no shortage of CRM vendors offering solutions in the modern market. Of course, some names are better-known than others, like Zoho CRM, Salesforce, and Microsoft Dynamics. However, there are plenty of alternative options to choose from, each with a unique range of benefits to offer.

Here at CX Today, you’ll find a wide selection of vendor reviews and vendor comparisons for the CRM landscape to help you make the right choice on where to invest. When making comparisons, remember to pay attention to:

  • Integration: Your CRM solution needs to be able to work well with your existing CCaaS technology and other tools to drive the best results. Before you begin implementing your technology, you’ll need to make sure it can embed seamlessly into the workflows of your existing customer-facing employees. Outside of contact centre technology, look for integrations with security tools, collaboration services, and file sharing solutions.
  • Flexibility: There’s more to flexibility than just being able to integrate your CRM technology with the right tools. You also need to ensure your vendor is on-hand to help you build the perfect solution for your team. A good CRM solution will be able to adapt to the needs and goals of your company, with everything from API access to advanced tools like AI and chatbots. Don’t forget to consider the scalability of the system too. As your business and customer base evolves, your CRM needs to keep up.
  • Feature set: Every Customer Relationship Management tool will give you ways to track and improve customer relationships. However, there are a host of different features out there for those who need advanced functionality. For instance, you might want your CRM solution to be able to offer both historical and real-time dashboards of valuable metrics to help you make important decisions. Or you may need your vendor to offer virtual assistants which can leverage information about a customer for an agent in seconds.
  • Industry knowledge: Dealing with customer relationships in any environment can be a tricky experience – but there are some sectors in which the process can be more complex. For instance, if you’re working in the healthcare or financial sector, you’ll need to ensure your CRM solution is specially designed to keep you compliant in these environments. Look for a vendor with experience working in your sector, as they should be able to give you more specific features and guidance.
  • Security and privacy: A CRM solution contains huge amounts of information, from call recordings to details about previous purchases. To remain as compliant as possible in today’s world, you need to ensure you have the right security and privacy systems in place. Look into your access control options for the CRM technology you’re going to use and find out where your data is going to be stored, so you can ensure sovereignty. You may also want to look into additional options for security, like multifactor authentication and biometric technology.

Making the Most of the CRM Landscape

CRM technology is more important than ever in a world where customers expect incredible experiences from their favourite brands on all channels, at all times. With the right CRM solution, you’ll be able to access everything from in-depth interaction tracking to insights into the kinds of trends that drive customer purchasing decisions.

You can stay up-to-date on the latest CRM technology news and reports here on CX today, or even use our reviews and comparisons, market guides, and smart guides to make the right decision on which CRM you need.

 

 

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