What is a CRM software? Types and Advantages

What is CRM market size?

The global customer relationship management market size was valued at USD 43.7 billion in 2020 and is expected to grow to USD 96.5 billion by 2028 at a compound annual growth rate (CAGR) of 10.6% from 2021 to 2028. (Source – Grandview research).

According to the research, one of the key trends in the industry is the growing demand for deploying Customer Relationship Management (CRM) suites and solutions via the Software as a Service (SaaS) model.

What is a CRM system/software?

Customer relationship management is the full of CRM. A CRM software allow companies to improve business relationships with customers. It’s a platform that connects different departments in an organization, from marketing to sales to customer service, to organizes their notes, activities, and metrics into one centralized system.

Customer relationship management is the process of managing conversions with existing as well as past and potential customers.

Why CRM software is important?

A CRM software offers you a clear overview of your prospects and customers. It acts as a centralized dashboard where you can see everything in one place that can shows you a customer’s previous relationship with you, the status of their orders, any outstanding customer service issues, and more.

What are the different types of CRM software?

There are two different types of CRM software in the market.

1. Cloud CRM Software
2. On – Premise CRM Software

1. Cloud CRM Software

Cloud CRM software is built and maintained by the CRM software service provider, on their servers. This service is accessible to the customers over the internet through a browser, allowing the customers to deploy the service without any software installation on their organization’s computers.

2. On-premise CRM Software

On-premise CRM software usually involve setting up servers in the customers office and installing the software on all required devices on customers organization’s local network. This puts the responsibility for upgrades, customization, and maintenance solely in the hands of customers IT department in customers organization.

Top 8 Benefits of CRM software

1.Act as a Centralized database

CRM software acts a centralized database for your sales and marketing team to update all prospect information at one place. It can be accessed by anyone from the sales and marketing team from any part of the world through a shared location. CRM software helps the sales team in finding the information they need about prospects to follow up and close deals.

2.Track all engagements with the prospects

All engagement both internal and external can be tracked through a CRM software. This allows sales representatives to track all parts of the customer’s journey, including every interaction, email, phone call, in person meeting and more

CRM software reminds the sales and marketing team to do follow up with the prospects on time.

3.Dashboard

CRM software provides reporting features such as sales dashboard and reports. These dashboard and reports allow sales team to better automate and manage their pipelines, deals and contacts. Sales representatives can evaluate their individual performance and keep track of their objectives and can do the necessary work to reach their sales goals.

Sales Head can use CRM software dashboard and reports to monitor every sales rep’s personal performance and they can also see the sales pipelines and deals closed.

4. Never miss a follow-up

By using an CRM software, you will never miss a follow up with your prospects. CRM software tracks all of your prospect activity which helps sales reps know when they need to follow up with specific prospect. CRM software reminds the sales to do follow up with the prospects on time. This will help the sales team to increase the chance of winning more deals.

5.Sales Forecasting

CRM software allow sales managers to forecast their sales by using the sales dashboard and reports. Since every activity of the prospect is tracked, it allows the sales heads to create sales projections for the upcoming months by informed decision in advance.

6. Mobile Accessibility

A CRM software with a mobile app ensures that your sales team has all the necessary CRM data no matter where they are.  A sales representative in the field can access any information about nearby customers, drop in for a meeting, and easily update the Sales team on any new information about a customer by logging in the CRM software and entering the updates through their mobile app at any time.

7. CRM Software offers better customer support.

A CRM software can help you provide the quality customer service support that your customers are looking for. Your customer service support agents can quickly check what products customers have ordered, and they can get a track record of every communication so they can offer customers the answers they are looking for.

8. Easy Integration

A CRM software provides the option to be integrated with third party applications. CRM software vendors guide you on how it can be integrated with other applications according to your needs.

How to choose the best CRM software?

1.Business requirements

The most important factor to choose the CRM software is to ensure it fits right into your business requirements and solves all the sales challenges

2.Budget

Once you understand the business requirements determine the cost that fits within your sales budget. Check out the hidden cost in terms of maintenance, implementation and support.

3.Easy to use

Please choose a CRM software which is simple and easy to use.  If the CRM software is complicated to use, don’t opt for it.

4.Check out customers reviews

Check out the customers review about the CRM software before you make a decision by doing a simple research and visiting the trusted review websites.

CRM Market Statistics

1. 65% of sales professionals use a CRM, and 97% consider sales technology “very important” or “important” (Source – LinkedIn, 2020)
2. 91% of organizations with more than 10 employees in their workforce use CRM software (Source – Grandview research)
3. 65% of brands adopt to a CRM system within their first five years of time. (Source – Capterra)
4. 82% of the organizations use CRM systems for sales reporting and process automation (Source – SoftClouds)
5. 65% of sales organizations use a CRM system in 2020, compared to 59% in 2018. (Source – Salesforce, 2020)