Types of CRM Software: Which Is Right for Your Business?
Choosing the right CRM (Customer Relationship Management) software that positively changes your business is important. You have to keep in mind that not all CRM platforms are the same. Each software is suitable for different audiences and serves specific purposes.
The CRM systems typically fall into three main categories: Operational, analytical, or collaborative. These categories come with different price ranges, onboarding processes, as well as different sets of features and benefits.
In this article, we will explore these three types of CRM software to help you find the CRM that best fits your business needs.
What Is CRM Software?
CRM stands for Customer Relationship Management. The software helps your sales, marketing, and customer service teams work together effectively to create great customer experiences. It keeps track of customer interactions, their important contact details, purchase history, and so on.
The main objective of a CRM is to keep customer data in a single cloud storage and let your team access the information quickly and easily.
Why Is CRM Software Important to Use?
The importance of CRM for your business is limitless. They bring positive value to any business in the following way.
Enhances Customer Experience
It helps provide personalized support and keeps track of customers’ future requirements.
Supports Sales Teams
CRM assists sales reps in finding more potential customers and finishing their tasks on hand in the shortest time possible.
Boosts Marketing Efforts
It automates marketing tasks and gathers huge amounts of customer data. The marketing team of a company can analyze and utilize these data to create effective marketing campaigns.
What Are The 3 Types of CRM?
As you have already seen CRM is mainly three types. Now we are going to discuss each type in detail in this section.
1. Operational CRM
As the name suggests, an operational CRM helps process and simplify key business operations. It assists companies in generating leads as well as turning those leads into contacts. Operational CRM software basically supports the following.
Marketing Automation
Operational CRMs automate repetitive tasks such as sending out email campaigns, distributing content, and reaching out to everyone on a huge contact list.
On top of that, some system even offers marketing analytics to track the success of online ads. They can also assist with more complex digital marketing tasks like SEO and blogging.
Sales Automation
Sales automation helps make the sales process more efficient. It lets sales reps find new customers easily and finish their tasks more quickly. Its features include scheduling emails for leads, enabling prospects to book meetings with reps, and tracking sales calls.
Besides, many operational CRMs help sales reps by automating tasks like rotating leads, assigning contacts, and managing deals and tasks. They also make it easier to create sales records, view sales data, and prioritize leads.
Service Automation
The main objective of service automation is to keep customers satisfied by ensuring quality services. It offers features like setting up customer inboxes, coordinating live chats, and using chatbots. Service automation can also involve using ticketing systems to delegate tasks to service reps and providing resources like knowledge bases or FAQ pages.
Who Should Use An Operational CRM?
- Operational CRMs work well for businesses with straightforward sales methods.
- Small and medium-sized businesses (SMBs) often find these systems very useful.
- Even bigger companies can benefit from operational CRMs.
2. Analytical CRM
Analytical CRMs use data collection and analysis to provide a better understanding of customer’s behavior and their requirements.
By analyzing this data, companies can find opportunities, set new trends, run targeted marketing campaigns, etc. Key features of an analytical CRM include data warehousing, data mining, and OLAP tools.
Data Warehousing
A data warehouse is a special type of database used in analytical CRM. It gathers and stores both current and past customer data in one place.
Data Mining
Data mining involves discovering patterns and trends in large sets of data. Analytical CRM solutions use data mining to identify trends and behaviors in customer data. With this information, companies understand their customers better and manage their customer lifecycle.
OLAP Tools
OLAP (Online Analytical Processing) tools are used to analyze data from different perspectives. For instance, a business might want to analyze how customers interact with its website. OLAP tools can simultaneously look at various data points, such as which features customers use, their locations, and their browsing times.
OLAP tools validate hypotheses based on the data collected by other CRM components. For example, if a CRM gathers data on customer website interactions, OLAP tools help analyze this data to guide sales, marketing, and service strategies.
Who Should Use An Analytical CRM?
- Analytical CRMs are great for businesses wanting to understand customer behavior through data.
- They are useful if you have employees ready to learn and work with complex software.
- In case you want to get valuable insights and prepare for the future trends.
3. Collaborative CRM
A collaborative CRM helps marketing, sales, and customer service work together more effectively. By bringing together data from these departments, it gives each team a clearer picture of what customers need and want.
Collaborative CRM platforms focus on two main areas: interaction management and channel management.
Interaction Management
Interaction management tracks every way a business communicates with its customers. It maintains emails, social media, phone calls, in-person meetings, and other forms of communication.
Moreover, it logs all interactions and any notes from team members. The information is then shared across different departments, so everyone has access to the same details.
Channel Management
Channel management uses the data from interaction management to figure out the best ways to communicate with customers.
For example, it helps decide whether customer service should use email or chat more often, or if the sales team should focus on phone calls or face-to-face meetings with potential clients. It helps find the most effective communication channels based on customer preferences.
Who Should Use A Collaborative CRM?
- Collaborative CRMs are ideal for businesses with multiple locations or many teams.
- They help companies that need strong communication between different departments.
- Not suitable for companies that are uncomfortable with sharing customer information widely.
Can You Use Different Types of CRM Together?
Absolutely! Just like having different tools for different jobs, businesses can use different CRM systems to handle specific tasks.
For example, you might use one CRM to analyze customer data and figure out what they want (analytical CRM), while another helps your sales and support teams work together smoothly (collaborative CRM). Some CRM tools like SaleBee CRM offer well-rounded CRM solution that comes with the basic features of all three categories.
How Do You Choose The Right Type of CRM for Your Company?
Choosing the right Customer Relationship Management (CRM) system for your business can seem overwhelming. With so many options available, each offering different tools and features, it can be hard to figure out which one is the best fit.
But don’t worry—here are 8 important things to think about as you explore your CRM choices.
Identify Your Goals
Determine what problems you want the CRM to solve. Rank these goals in order of importance for your business:
- Track leads and lead activity
- Track your customer base
- Monitor opportunities and closing rates
- Enhance connectivity between teams
- Manage relationships
- Generate customized reports
- Organize business operations
- Increase profitability
- Boost productivity
Understand the Implementation
Changing to a new CRM involves a setup period, which might require an external consultant or a dedicated team member. This phase includes training your staff and transferring data to the new system. You have to consider the resources you need for this phase.
Even if there are no direct costs for implementation, you will need to budget for training and data migration. Implementation can be time-consuming and impact your team’s regular work, so plan accordingly.
Prepare for User Adoption
Some team members might be hesitant about using a new CRM, especially if they feel it threatens their job security. Reassure your team, particularly the salespeople, that their personal relationships with clients are valued.
You can involve your team in the CRM selection process to help them feel more comfortable with the change. The more involvement they have, the more likely they are to embrace the new system.
Understand Product Mobility
Ensure the CRM can be accessed on various devices like phones, tablets, and laptops. Usually, the sales team stays out of the office environment most of the time and needs to access the CRM from different devices.
Look for Updates
Choose a CRM that regularly updates to stay current with new technology and meet the needs of tech-savvy users.
Layout Your Processes
Different CRMs are designed with various business processes in mind. Make sure the CRM you choose can handle your specific processes and adapt as your business grows.
You should pick a CRM that is flexible enough to grow with your business and adjust to changing processes without needing to replace it.
Review Compatibility With Current Software
Ensure the CRM can work with the other software systems you already use. Many modern CRMs connect through APIs, but you should confirm compatibility.
If needed, look for third-party tools that can help connect different systems and streamline your data management.
Test The Product Demo Thoroughly
Always request a product demo and take the time to use it. Try to test the CRM’s limits and identify any strengths or weaknesses. Don’t just glance at the demo—thorough testing can save you time and trouble later.
Ask About Reporting Capabilities
While all CRM features are important, strong reporting capabilities can give you extra advantages. Ensure the CRM allows you to customize reports based on your data to highlight wins, losses, and areas for improvement.
Final Words
Picking the right CRM software means you are already one step ahead of your business. By learning about the three main types of CRM software, you can choose one that fits your needs best.
Think about your business goals and the overall situation of your teams. With the right CRM, you can make your processes smoother, boost productivity, and help your business succeed.