Look out when you’re reading about CRM! Because there are two CRM definitions, it can be easy to confuse them.
Typically, the term “CRM” will refer to business policies and processes designed to consolidate, manage and analyse customer interactions and data. The ultimate goal of CRM is to highlight and utilise key areas where customer interactions can be improved to maximise retention and enable sales teams to effectively grow the business.
Meanwhile, “a CRM system” refers to the technology (software) underpinning CRM strategies. It’s a small difference, but an important one. Without a CRM system in place to support your business’s strategic goals, collating and analysing data is a messy, unrefined and time-consuming task. An effective CRM system is used by salespeople to record information about customer relationships that can be automatically consolidated and reported on for the benefit of both salespeople and management.
In today’s data-driven world, CRM and a powerful software system supporting it are an absolute must for any business trying to grow.