Customer Relationship Management – CRM
In our last post, we discussed an overview of customer relationship management and customer experience management. In this post, we will take a more detailed look at customer relationship management, available tools, and metrics associated with CRM. Customer relationship management is the totality of your organization’s attempt to understand your customer base. This includes managing all customer interactions, trends, and behaviors.
While customer relationship management is a concept, it is also a tool itself. The market offers a variety of software packages that centralize all customer interactions and trends for you. These include out of the box CRM software, cloud solutions, and artificial intelligence. Your company’s website, email campaigns, and social media play an important role in this process. That is because CRM tools still rely on human management of analysis and reports. CRM software helps compile data and information, but you and your employees still need to sift through to understand how your efforts are affecting sales and customer service.
Customer relationship management software, regardless of vendor, helps you understand things such as sales and campaign reporting like pipelines, lead sources, and revenue. Further reporting on customers like buying patterns and demographics can help you make better decisions or focus efforts. Some examples of CRM reporting include:
- Profitability Reports: These reports can help you understand where your income is coming from. Understanding your customer base and purchase history helps you understand buying habits, which customers are the most loyal, and who may potentially buy from you on a reoccurring basis.
- Sales Forecast Reports: Your business relies on your ability to budget and forecast. CRM software can provide you with a more accurate picture of past sales trends and future sales growth. Accurate pipelines and sales forecasts take the guesswork out of projecting revenue and profit.
- Sales Conversion Reports: CRM software can help you gain a better understanding of when and where you are converting sales and sales leads. This allows you to channel your efforts towards successful campaigns styles. For example, you may find your email campaigns are converting more sales than your paid social media advertising. Thus, allowing you the ability to change tactics quickly and more effectively.