CRM Software: Definition, Application and Benefits

Each time a company gets in touch with a customer, it gains new information – valuable insights that give a more or less concrete idea about current or future projects, needs etc. In the past, this kind of information was collected with analogue methods – tools that weren’t interconnected, and this information was always at risk of getting lost: either due to employees leaving the company or broken laptops or damaged hard disks. This is where CRM systems will prove to be a great help.

CRM is short for customer relationship management and is used to describe a specific software for managing customer data. It doesn’t only help companies to systematically collect data from existing and prospective customers, but it also structures the data before saving it, and employees can use the same set of data simultaneously. The software also provides valuable information about customers: It helps with, and therefore simplifies, sales management and targeting in marketing. Furthermore, it supports teamwork: cloud-based CRM systems, for example, make it possible to work from home or on the go.

Compared to acquiring new customers, it’s significantly cheaper for a business to maintain existing relationships and to focus on selling new products to the same customers. In order for you to offer personalised customer support and services, CRM systems map and store the complete email history, all requests, acquisitions, presentations, preferences, complaints etc. of a customer, which can be accessed with just one click. Additionally, you can add notes about follow-up meetings and next steps to make sure that every sale is closed.

In summary, CRM systems lead to optimised customer service, higher Customer Lifetime Value (CLV) and therefore encourage rapid business growth.

Basic types of CRM systems

CRM is based on 4 cornerstones to improve the relationship between businesses and customers.

Communicative CRM is all about the communication between a business and their (potential) customers and includes emails, chats and video calls. All communication channels are synchronised, giving your employees the opportunity to choose the best channel for each customer.

Operative CRM aims at acquiring basic data that, further on in the process, should be analysed – for instance offers that were made in the past, returns and purchases.

Operative CRM works closely together with analytical CRM: It provides the data for the analysis, and it uses the results as input for further steps.

Analytical CRM analyses the data the operative part of the CRM system provides in order to gain valuable insights such as customer ratings, cross-selling options and audience segmentation.

Last but not least, collaborative CRM describes the cooperation between teams as well as the company and third parties, e.g. departments or suppliers.

Key features of a CRM system 

Here is a brief summary of the most important services a conventional CRM system offers:

Customer data management: Customer data and information can be accessed and updated anytime. 

Lead management: All activities, tasks and goals right up until and including conversion can be tracked.

Sales forecast: Leads can be qualified, and a point in time when the goal will be reached can be predicted.

Qualified searches: by revenue, region, size, target audience etc.

Instant messaging: Teams can communicate with each other via a chat, and it’s less complicated to contact third parties.

Access to data and documents: Employees can upload information to a central database and also share this data.

Email integration: Email clients can be synchronised – no need to constantly log in and out of several different platforms.

Dashboards: Information is clearly arranged on dashboards that can be individually designed.

Modern, cloud-based CRM platforms offer a great variety of different features in addition to the ones already mentioned. For example, they often include automations used in marketing or other systems used in customer support.

Benefits of a CRM system

Large amounts of customer data and effectively using this data for various tasks in marketing, for instance, can prove to be a great challenge. This is where CRM software is extremely helpful, since it converts raw data into useable information.

The main benefits of using a CRM software are: storing all the data on one platform and using it anywhere and anytime, improved teamwork, optimised and personalised customer service as well as centralised task management.

Apart from that, a couple of systems offer additional features, such as being able to use the CRM software on mobile end devices. This will enable your employees to access important documents and information on the go or at home, and they can update information straight after a meeting. That way your team always has the most recent information at hand. But mobile CRM solutions don’t only make working on the go so much easier, they could potentially reduce the size of the office space you need and therefore help your business to save money.

Which companies benefit from CRM software?

Generally speaking, most companies benefit from implementing a CRM software. Especially in the real estate industry, it can be beneficial to get real estate management software. However, these systems tend to be quite pricey. That’s why you should carefully consider if and when investing in such a tool would really pay off, and always balance the costs and benefits.

We have identified a couple of points that will sound familiar to most businesses. If any of the following aspects are true for you, your colleagues or your company in general, this means that a CRM system would definitely be beneficial.

• • Acquiring customers using spreadsheets, business cards & several Sales Agents

• • Hand-written notes to record meetings with customers

• • Orally communicating infos about customers to the team

• • Inboxes being flooded with emails from customers as well as with private emails

• • Target groups with a focus on personal and long-term customer relationships

For stationary trading, restaurants, pop-up stores or B2C e-commerce, CRM systems are less suited.

Choosing the right CRM system

As a next step, you have to decide which CRM software best meets your company’s needs. This highly depends on your company’s philosophy, but also on the size. The aim for small and medium-sized businesses is to achieve the highest possible outcome with small investments. This is why operative and collaborative CRM systems would be ideal for those companies, since they don’t only reduce their employees’ workload, but because they also improve the communication within a company. Analytical CRM systems, on the other hand, would result in more work.

Choosing the right system is even easier if you compile a list of requirements – maybe include suggestions from your employees, since some of them might have already worked with CRM systems before.

Many software providers give new customers the chance to use a trial version of their product before purchasing it. You might want to consider taking them up on the offer to see which CRM system is best for your business and your employees.

You also mustn’t forget about data protection and data security: Good software should include SSL encryption and the possibility to change your passwords. For cloud-based software, the location and the quality of the cloud server can play an important role.

Tips for introducing a CRM software 

After you have chosen the right CRM system, you should pay attention to a couple of things at the start:

Involving your team and staff: It’s really important you get the whole team on board early on. This means: informing and training them. Also give them a good reason as to why you are introducing a CRM system and how everyone will benefit from it at work.

Rules for using the system: A CRM system won’t benefit anyone if your staff don’t know how to use it or don’t maintain it. To guarantee the best possible results are achieved, it’s vital to lay down rules right from the start, such as a guideline regarding the wording in communications.

Thorough monitoring: Check what your employees feed into the system. Is the information complete? Were the requirements met? The point is not to check up on individual employees, but to make sure that the software is used in the same way by everyone. Don’t hesitate to organise workshops where everyone can talk about their experience and struggles. This will give your employees the opportunity to come up with suggestions that might help the whole team.

CRM software – Conclusion

CRM systems can be an important tool for companies. Not only do they make customer service more personal, but they also strengthen the relationship with existing and prospective customers, and make life easier for your employees by improving their work as a team. The only thing to consider? Choose your CRM software wisely and train your staff extensively right from the start. If you bear this in mind, nothing will stand in the way of your business to grow with a CRM system!

iDWELL offers mobile CRM property management software that won’t only reduce your employees’ workload, but will also lead to happier tenants and owners.

Is your property management company ready for digitalisation? Then reach out to us at contact@idwell.com. We are pleased to show you how you can take your company’s service to the next level with us!