CRM: What is it, who needs it and how can you benefit from it?

You may have experienced it yourself: You call a company and the other party greets you personally by name and has all the data ready for your complaint about the last order. In this case, you can assume that your data comes from a CRM system (Customer Relationship Management) and that the recognition of your telephone number opened the appropriate data set. Ideally, it combines the customer’s relevant contact data with his contact history and the orders from the merchandise management system. This 360-degree view improves customer relationships with mutual benefits.

Data is transparent and immediately available

The availability and transparency of data is extremely important, especially in hybrid working environments. Because all customer data is stored in one central location, all employees across departments can access the same information. Ideally, the CRM logs all customer contacts and the respective processor completes the data records with the relevant conversation details. This applies equally to telephone calls, e-mail enquiries, visit reports, offers sent and complaints. As a result, employees in sales, marketing and support, for example, always have the same level of knowledge. Knowledge is shared and does not remain in specialist departments or with individual employees. As a consequence, customer inquiries can usually be dealt with more quickly, efficiently and purposefully.

Good: Many CRM systems can connect to LinkedIn’s more than 750 million contacts. In addition to your own data, you will then also see the information stored on LinkedIn as well as posts and linked contacts.

Which companies need a CRM system?

From handicraft businesses to medium-sized companies to large corporations – a CRM system can make sense for companies of all sizes and industries. The CRM systems are usually scalable and grow with the requirements and the number of jobs (“on demand solution”). The interfaces to other data sources such as merchandise management are important. CRM systems in the cloud are widespread. They allow location-independent access, for example for employees working from home or for field staff when travelling.

CRM increases customer lifetime value

Satisfied customers are loyal customers who buy or place orders regularly. How important a good customer relationship is can be seen from the customer lifetime value. It identifies the total value of a customer for a company over the entire duration of their business relationship. Put simply, this is the customer’s turnover. Basically, it is much cheaper for companies to keep existing customers than to win new customers. A CRM system can help to increase customer lifetime value and thus promote growth.

Analyze and evaluate customer information

Over time, a lot of data from different departments ends up in a CRM system. What does the customer ask for, what does he buy, which offers does he jump at and what problems did he have? Not to be forgotten is data on machines and devices, which can also flow into a CRM system. For private customers, this can be data from the heating system or the photovoltaic and solar thermal system. For commercial customers, in the age of the Internet of Things, automatically recorded machine data can indicate the next maintenance and plan a contact or on-site appointment. Modern AI tools are able to evaluate existing information in a targeted manner and, for example, better identify cross- and up-selling potential. As a result, appropriate sales and marketing measures can be initiated in order to sell customers additional or higher-quality products.

With CRM, companies are more competitive

Used correctly and fed with the appropriate files, customer relationship management increases the efficiency of a company in areas such as sales, marketing and service. Customer satisfaction inevitably leads to higher sales and makes the company fit for competition. Not to be neglected: Employees with an affinity for technology use professional software as a matter of course and are (more) productive at work. In addition, young talents expect modern IT from companies, which also includes a CRM system.

Examples of well-known CRM systems

Depending on the requirements and budget, companies have a large selection of suitable CRM systems. Here are some examples.

Salesforce Customer 360

A world-leading CRM for all industries. Professional software for corporations and SMEs.

HubSpot

A free CRM system that can be expanded (for a fee). This software offers a good introduction to the world of customer relationship management systems.

Bitrix24

Bitrix24 is permanently free for an unlimited number of users. The paid versions offer many additional extras in addition to more storage space.