A Beginner’s Guide to CRM Systems

Read our comparison of Pipedrive vs Salesforce to decide which CRM is right for your business based on their price, usability, features, and more. Choosing the right type of CRM for your organization is a process. After assessing your business’s most substantial needs, you’ll have to select a CRM that best addresses those. However, even if a CRM meets the needs of your business on paper, implementation and use is another story. When possible, opt for a trial or demo version of a CRM before committing. Choose a collaborative CRM to eliminate information siloing across interdependent teams and keep members on the same page.

While it has value for you, if it gets into the wrong hands, it can quickly become a liability. Any CRM you consider needs to promise the highest level of security, so you can keep your data safe and keep your customers’ trust intact. Companies that have a lot of customer data and don’t know how to effectively use it. The answers to questions like these are important for identifying weaknesses in your current approach and figuring out what changes to make for better results. Analytical CRMs are useful in this step because they use data mining—a technological process for analyzing large sets of data to find trends within them.

Why have a CRM system?

A CRM system essentially provides a central place where businesses can store customer and prospect data, track customer interactions, and share this information with colleagues. It allows businesses to manage relationships with customers, helping the business to grow. A customer relationship management system aims to address operational crm definition challenges like these. It takes customer data and turns it into useful, actionable insight that can transform a business. It helps everyone in a business to easily update records and to get access to the latest information. If the system is cloud-based, they can do this wherever they are, on any connected device.

types of crm systems

We’ll first begin with a CRM meaning for you, then discuss the types of CRM software in greater detail. We’ve put together a package of 17 proven cold email templates to make your campaigns easier to execute and optimize messaging for your own leads. This might involve automatically tracking a contact and updating their status from prospect to qualified lead once they’ve completed certain actions or met specific criteria. Read our independent review of the best commercial real estate CRM software, featuring the best use cases for each option.

Consider an Operational CRM if…

This CRM type is all about making communication and collaboration more efficient across your teams. It forms the foundation of business intelligence tools, which let you slice and dice data sets so you have the knowledge needed to take action. For example, you could use classification to create customer segments based on shared attributes. This could be anything from their age or which product they bought to how they found your company (Facebook ad, Google search, etc.). Data mining is a bit complex, but the simple version is that it’s a process you can use to make sense of your data and turn it from raw information into useful insights.

  • Sales managers can use reports to motivate and manage their people.
  • CRM systems help keep up with the modern consumer by organizing vast amounts of valuable customer data in a centralized platform and harnessing all possible touchpoints.
  • Although these teams often work independently of one another, their duties intersect often, and those intersections can now be smooth and seamless.
  • But in order to get the most out of your CRM, it’s important to ensure you get the right option for your needs.

This first type of CRM, as the name implies, is all about facilitating your operations. Every interaction your brand has with current and potential customers is possible with an operational CRM. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities.

Integration options

This can include email marketing, as well as live chats, website monitoring, and lead management. Companies that run an account management driven sales procedure with a finance led management style will find the analytical CRM well suited for their purpose. It will be able to collect, store and evaluate information provided from all departments, helping to plan marketing campaigns based upon accurate https://xcritical.com/ data. This streamlines and automates sales and marketing as well as service processes. Its main role is to generate leads and then convert them into contacts within the CRM, capturing all details at the same time. For businesses fixed on improving levels of customer satisfaction as well as profitability and revenue, the installation of a CRM system to build long-term customer relationships is a must.

types of crm systems

As time goes on and you need that feature, you’ll be forced to buy another software that has it, making your CRM a little less effective in the process. Ideally, your CRM should make it easy to add or subtract customers from your active lists if they opt for removal, using only a single click. Thus, even though it’s been a few years, your business can’t afford to ignore the rules to remain GDPR compliant.


Check out our independent editorial review of the best sales pipeline software, along with the primary use case of each one. Our in-depth Insightly review will help you discover if this project management CRM is ideal for your business. There is a possibility that your business could benefit from more than one of these types of CRMs.

Short for customer relationship management software, CRM software is intended to help your small business or startup manage the customer base you have. Examining customer data can also help you identify places where your sales funnel needs de-clogging or highlight a common problem facing current customers. An analytics CRM provides the information you need to reframe your marketing and develop better ways to communicate with your targets. No matter what you’re selling, managing your customers is necessary for the success of your business. This is where choosing a customer relationship management system comes into play. Learn more about what an operational CRM can do for your day-to-day tasks in our guide to thebest operational CRM software for salespeople.

This entry was posted in FinTech. Bookmark the permalink.