CRM system: what it is (in simple words), how it works, who is suitable for it

CRM system is a smart quick electronic assistant for company employees. This computer program takes care of routine tasks that require attention, records all customers, records each treatment, reminds about the tasks, instantly gives the necessary report. What is a CRM system and who can use it?

How CRM works

CRM system in the company automates routine processes related to customer service or employee interaction. The main functions of CRM:

• Collects and stores information about customers.
• Improves managers' work with classifications, reminders, filtering clients etc.
• Creates documents by templates.
• Automatically logs all customer requests. No question or request will be lost.
• Generates statistics and analytics.
• Makes necessary mailings to customers and employees.
• Calculates the cost of services, taxes, and commissions.
• Forms a "portrait" of target audience and classifies clients according to their needs.

CRM systems come in two types of deployment:

• Cloud-based - all data is stored in a data center on a server. The user enters the program from any device. A subscription fee is paid.
• Local - the program is installed on a company computer or server, the data is stored on the client's facilities. The license is a one-time fee, and there may be additional charges for upgrades. Also there are also variants with subscription fees.

According to their functionality CRM can be:

• Operational - automate daily processes and routine activities.
• Analytical - stores databases with information about business processes and customers.
• Collective - automate interaction between employees.

There are combined CRM systems. They include some functions from all of the above types of programs. Mono CRM are configured for specific tasks, so they have a narrower specialization.

As a rule, just choose CRM enough. You need to set it up properly and integrate it into the company. This is why CRM setup is often a separate service.

Who is suitable for CRM?

Such programs are applicable to large holdings and small companies whose activities involve working with clients on the phone, via e-mail, messengers, website interfaces, logistics. The main thing is a wide base of clients. If a private enterprise has 5 clients, you can not invest in a CRM, and do with simple applications and tables for accounting. CRM is used for these areas of business:

• Large online stores.
• Infobusiness - courses, trainings.
• Factories and plants.
• Agribusiness.
• The wholesale and retail trade.
• Recruiting and HR.
• Various services, from cleaning to hairdressing.
• Real estate.
• Event events - co-working spaces, organization of corporate events, etc.

If the manager when drawing up the contract would need about half an hour to find a template in the database, enter there the details of the client to clarify the address and other details, with CRM it will take two minutes. The system will find all the data and add them to the contract template.

All history of interactions with the client is stored in the client card: data on calls and correspondence, orders, references, claims, etc. A few clicks, and all information about the customer is available. It is also possible to track all actions of the manager: stages of sales funnels, status of deals, correspondence, calls, etc.

Conversion analysis is available, as well as keywords that were used in paid advertising. Which keywords brought more customers, how much it cost the company and when the costs are recouped. This helps you spend your advertising budget rationally and use the most effective methods of promotion on the Internet.

Programs differ in the set of features. Not all of them can be useful. First of all, decide what tasks CRM should solve now, and what features you will need in the near future. In order not to overpay for unnecessary functions, choosing a CRM.