CRM systems: essentials, varieties and importance for business

CRM systems: essentials, varieties and importance for business

Yana Kozhemiako
March 21, 2024

In current market conditions, conducting business activities can be challenging. Increased competition and high customer demands necessitate finding new solutions to optimise operations and meet customer requirements. 

Business success is directly linked to sales and customer satisfaction, which can be improved by enhancing the level of service performance. The implementation of a CRM system can automate several business processes and redirect employees' focus towards more critical tasks. Additionally, customers will receive a more personalised approach, which can enhance their long-term loyalty to the company and increase sales.

What is a CRM system

A CRM system is software that automates business processes, improves communication with customers, and optimises employee work. In other words, it is a tool for effective management of your business and for transferring a number of work processes onto online software. This allows employees to focus on more pressing tasks.

There are many software options available on the market, each with a unique focus and suitability for specific areas of business activity. Some are already integrated with additional solutions for communication and telephony, allowing for more efficient work within a single system and access to all necessary management tools and information.

CRM systems offer various connection packages, which can be free or tailored to specific business niches. The correct choice of online software will determine its implementation cost and future performance. Software can be classified according to its purpose, such as increasing sales, managing customer accounts, marketing and analytics, and transaction management.

How the CRM system operates

A business that relies on customer communication must pay attention to the smallest detail. Tasks include keeping a record of communications, applications, and the customer base, as well as capturing important moments, following up on sales, and assigning tasks. Additionally, mass mailings are often used in business. Company managers should seek ways to optimise employee work, establish communication between departments, monitor performance, and maintain analytics. Typically, individuals use a variety of tools, such as calendars, spreadsheets, and task managers, to manage their tasks.

However, when dealing with a high volume of customers, using multiple programs can be challenging and result in decreased efficiency in customer communication. In such cases, a CRM system can help streamline company operations, allowing for optimization and consolidation of services. Thanks to this, employees do not need to keep multiple tabs open on their desktop as all their work can be completed within one program.

The main features of the online software should include:

  • Recording of the client base. Information concerning clients is presented in the form of cards, allowing you to find the history of requests, future calls and meetings, content of negotiations, upcoming tasks.
  • Automation. It becomes possible to automate routine tasks such as mass mailings, creation of letters and documents.
  • Sales management and analytics. One of the advantages of software is the ability to analyse the stages of the sales funnel. Moreover, many CRM systems have accounting and analytical tools.
  • Employee work monitoring. Software allows you to assign tasks to employees, monitor their performance, and set the priority of tasks.

What kind of businesses need a CRM system?

A CRM system has the advantage of being adaptable to various business tasks, making it suitable for companies of all sizes. It can be implemented in both large-scale enterprises and smaller companies where employees hold multiple positions.

For smaller companies, online software should be flexible and inexpensive. This software can be used to record customer requests, communication history, and send mailings.

In situations where the number of employees exceeds one hundred, a CRM system is essential. It allows for the evaluation of team effectiveness, sales management, workload distribution, and the development of marketing strategies. Good software is necessary for these tasks, as opposed to using ordinary spreadsheets. Online software can help coordinate the work of different departments, automate sales, and optimise business processes. For instance, the Rentsyst CRM system for the carsharing sector automates car rental processes, maintains customer records and communications, and sends reminders for vehicle maintenance.

Types of CRM systems

Familiarising yourself with the different types of online software can help you understand their peculiarities. There are several variations, each designed to cater to specific business needs. However, four main categories can be distinguished:

  • Operational. Their specific nature is aimed at optimising the operational side of the business. With its assistance it is possible to achieve automation of processes, fixed data of transactions, accounting of clients, setting and control of tasks fulfilment by employees.
  • Collaborational. The least prevalent variant. It is suitable for products that are created with the participation of consumers through different communication channels.
  • Analytical. Emphasis is not only on information gathering, but also on information follow-up. Such programmes provide great help in segmenting the base, determining profitability, analysing customer behaviour and analysing the sales funnel. With their help, you can competently build a marketing strategy.
  • Combined. Many companies need both optimisation of operational processes and analysis of data, so there are combined CRM systems such as RentSyst.

Tips for choosing a CRM system

Switching to online software is an undertaking that requires a thorough understanding of the different types available and the selection of the most appropriate option for implementation. When selecting software, there are several factors to consider:

  • User-friendly and straightforward interface. This criteria determines how easy the process of staff adaptation to the innovation will be. 
  • Flexibility in customisation. It is crucial for online software to be able to tailor all the indicators to the peculiarities of a developing business.
  • Availability of a mobile version. It will simplify the work of specialists who are on the road and will allow them to have access to the programme in any circumstance.
  • Price. Small businesses will not be able to afford an expensive programme, because it will be inexpedient. While large companies will be able to pay a high price and get at the same time advanced functionality.
  • Implementation. It is important to choose a CRM system, which will be easy to implement and import all the necessary data.

Selecting online software is not just about choosing a program. To be efficient, you should also have a firm understanding of the goals and objectives that the online software should address, as well as a complete picture of your business processes and sales funnels.

To conclude

Every business aims to adapt to market changes, while creating conditions for profit increase and minimising costs. A CRM system is a necessary tool that can effectively establish the company's workflow, increase employee efficiency, optimise operational tasks, and provide consumers with the best service to help increase sales.

If you have decided to implement online software, it is worth familiarising yourself with its types, advantages, and selection criteria. It is important to remember that software alone cannot guarantee success in business. To achieve desired efficiency, companies must correctly define their goals and competently develop a marketing strategy. 

In summary, a reliable CRM system is an essential tool for modern large companies to optimise work processes, increase conversion and sales, and thus achieve the desired level of efficiency.

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