What is CRM software?

At its simplest, CRM software gives companies a place to record customer contact information, such as their email addresses, telephone number, website details, social media profiles, and anything else that a company needs to know about a customer. 

It will also tracks the customer's preferences, such as how they prefer to be contacted. 

CRM software also automatically pulls in other information, such as any relevant news about a client's company. Effectively, CRM software ensures that by looking up a client (whether a current customer or potential future one), a business user can easily discover everything they need to know about a client.

It will integrate with other company systems and play a vital role in the sales funnel and help manage customer service and relations.

What does CRM software do?

• Provides a comprehensive view of a customer or client
  • Let you easily filter and update customer records, such as workplace and email address entries.
• Makes it simpler to monitor and manage tasks and deals
  • Track sales pipeline stages—for example, lead qualification, proposal, and closed deal.
• Automates customer-related processes
  • Create and assign tasks to sales leads, such as follow-up calls to specific clients.
• Enables cross-departmental collaboration
  • Visualize and export data reports to identify opportunities to close deals.
• Monitors and manages relevant email campaigns
• Improves sales and customer service 
  • Integrate with common business software such as Microsoft Office and Xero, to complete tasks more efficiently.

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How different departments benefit from CRM software

Customer service

Having extensive knowledge about a client easily at one's fingertips means that customer support is far improved. It enables the department to personalize the customer experience, easily looking up previous conversation history and accessing detailed notes. 

By being able to consolidate communications in one place, it's easier to log. It's also possible to integrate CRM software with online chat tools, so that saved chat summaries can be sent to customers after an issue is resolved.

Through such methods, customer issues can be solved faster, meaning fewer support ticket queues for employees and superior service for customers. That leads to increased customer loyalty, and a better experience for the company's staff too.

Teams offering customer support can use a CRM to quickly access up-to-date information such as personal details, account activity, and previous communications. 

This helps resolve queries quickly, and increases levels of customer satisfaction. Some CRMs include specialized help desk features such as ticketing and live chat. IT help desks can benefit from knowing when and where tickets have been raised, for customers as well as company colleagues.

Marketing and sales

A marketing department can use CRM to track how prospective customers are finding the business, thereby determining where marketing is working most effectively. 

Leading from that, marketing can then use the information stored within a CRM to keep customers engaged in a way that's relevant to them, thereby providing a more personalized experience. 

In a similar way, sales departments can sell in a more personal way to customers, being able to manage deals to suit them. 

With CRM software offering many integrations, sales departments don't have to worry about switching between programs and missing key information. It's also possible to view every deal in progress, and track and analyze individual sales performances for each employee. 

Finance 

For a finance department, CRM means that staff will always have an accurate and up-to-date view of the organization, without having to use multiple programs and spreadsheets. It can combine sales information from a CRM with data from another system to gain near instant insight. 

With a more precise business forecast, revenue and budget variances can be more effectively managed, as well as customer collections and any outstanding invoices too. Ultimately, all these services reduce the workload of a finance department, while also making them more efficient and accurate.

IT department

By using such a comprehensive service such as a CRM, a company's IT department can focus its efforts on that one piece of software rather than needing to juggle multiple other tools that complete the same job. While IT will still need to manage other tools separately that are unrelated to the CRM process, it cuts down on the different types of software it supports, streamlining the process. 

Much like finance, IT can also use that information to audit where it can best serve customers and clients, as well as the company's employees, thanks to CRM software providing such extensive reports and analysis. Finally, many CRM services are cloud-based, which means automatic software updates that IT won't have to deal with.

HR department

For an HR department, CRM can help on multiple levels. It can help streamline recruitment by allowing them to enter details of applicants, and easily keep track of their responses and performance. 

It can also improve payroll management, as CRM software generally works well alongside accounting programs, meaning that HR managers can easily keep track of bonuses (tied into sales performances), commissions, absences, sick days, annual leave, and anything else that is required before arranging payments. 

Alongside this, HR can track employee performance via CRM and customer relations, as well as automate much of its daily processes. 

Features and benefits of a CRM

CRM software offers numerous benefits. Here's a look at the key reasons why all businesses need to use such tools.

Superior contact management 
The core reason is that a CRM offers enhanced contact management. Rather than being dependent on many different tools, spreadsheets, and sometimes even physical notes or the memory of a staff member, using a CRM means that all contact notes and relevant information about a client is in one place. 

That means that every call, email, or social media message is recorded and accessible to the entire team via a centralized system: meaning nothing can fall by the wayside.

Better cross-team collaboration 
Cross-team collaboration is far superior with a CRM. It allows all teams in a business to work together, with a sales team able to easily collaborate with product management to produce individual quotes; or for marketing to generate a lead before providing a salesperson with the full information they require. 

HR can pinpoint the best performers in a business, before rewarding them accordingly by contacting finance. Crucially, all employees feel more part of a team than if they miss key information. 

Increased productivity
With knowledge at the company's fingertips each step of the way, the productivity of a company vastly improves. Staff don't need to coordinate their efforts by emailing or asking questions, as the majority of information is all stored on the CRM, saving valuable time and meaning nothing slips by when someone is out of the office that day. 

A CRM can also generate follow-up emails, and provide managers with key details regarding meetings, again saving precious administrative time. 

All of this also reflects back to the customer, as it means a faster service and no need  to repeat themselves with what they require from the company.

Better sales performance
Having key information about customers means better sales performance for a company's sales team. They arrive more knowledgeable about what a client may need, which generally leads to more and better quality sales. 

Alongside that, sales managers are able to analyze customer relationships as well as track sales-related activity. In doing so, they can pinpoint which customers are most likely to be interested in a product, ensuring better service and less wasted time for uninterested parties. It can also help encourage sales staff to pursue more sales, as quotas can always be checked. 

Increased customer satisfaction
When everything runs more smoothly, customers and staff alike are happier. Staff are able to easily view all customer interactions knowing how best to anticipate issues, and deal with complaints before a client needs to say anything. 

That leads to a more positive experience for the customer, as they feel they are being listened to. In turn, that leads to better customer retention, as a happy customer is much more likely to stick around for a long time to come. 

Staff will also be happier, as there's less chance of dealing with irate customers being sent around different departments who are having to explain their issues each time.

How much does a CRM cost?

CRMs are typically priced per user per month. That means the cost escalates based on how large your company is and how many members of your team need access to the CRM (ideally, the whole company). 

Costs vary depending on your choice of CRM, with some starting from $12 per user a month, and others costing upwards of $200 per user a month, depending on the features you need. 

Many CRM platforms offer basic packages which include only the most essential functions, such as contact details and basic reporting. Often, the more a company spends, the more advanced features such as sales automation and integrations become available. 

That means a CRM package can often scale to the business's needs, meaning that a small business can benefit greatly from a basic package before opting to upgrade as the business grows.

CRM pricing compared

Below we compare prices and features of some of the most popular CRM solutions.

CRM frequently asked questions

Is CRM software?

While CRM comprises both digital and non-digital activities, the term often refers to software products that enable better relationships with your customers. There are many vendors that offer CRM software at varying price levels.

What is an example of CRM?

A typical CRM program enables you to import an existing database of contacts (e.g., Google Contacts), edit individual records, create new sales opportunities and advance them through pipeline stages. You can also use it to track team members’ tasks, and export reports with your contact and sales data.

What are 'CRM tactics'?

CRM tactics or strategies are a company-wide plan to help a business grow its revenues and profits, all while reducing costs and enhancing customer relationships. By analyzing how sales have been created and how they have performed, companies can develop strategies that work best for their sales range, based around what the CRM information has provided.

What makes a CRM good?

Automation is one of the key parts of a CRM, meaning that information doesn't have to be manually added by staff or clients. 

More complex CRMs team up automation with integrations with other apps and services, so that everything comes together without much interaction required by any department. 

Alongside that, it's helpful for the CRM to be intuitive to use and viewable via the cloud, so that team members aren't constrained to using certain systems.

Key takeaways

There's a lot to learn about CRM software, so if you only take away five pieces of information from this article, take these:

• A CRM stores valuable information about customers. A form of advanced address book at its simplest, a CRM stores all contact information about a client as well as any interactions with them

• A CRM saves businesses money. An efficiently-working CRM ensures that a company can work better and more cost-effectively, saving time and money

• Improved customer relations. Saving customers the effort of repeating themselves improves their view of a business and increases retention rates

• Different CRMs exist. It's important to find the right CRM for your business, so that it matches with budget requirements as well as your needs

• It streamlines work between teams. Departments in a company are able to work more effectively by viewing everything in one place, before breaking down sales analysis and team performance

Further reading

If you're considering a CRM for your business, make sure to look at the best CRM software to find the best provider for you. Our Salesforce review and our Freshworks review cover two leading contenders in comprehensive detail.

It's also important to consider other ways in which software can enhance your business aims. For instance, now is the time to pick the best cloud storage, so that your team can work from any location, while the best VPN can protect your business's data.

What is an example of CRM?

A typical CRM program enables you to import an existing database of contacts (e.g., Google Contacts), edit individual records, create new sales opportunities and advance them through pipeline stages. You can also use it to track team members’ tasks, and export reports with your contact and sales data.

What are 'CRM tactics'?

CRM tactics or strategies are a company-wide plan to help a business grow its revenues and profits, all while reducing costs and enhancing customer relationships. By analyzing how sales have been created and how they have performed, companies can develop strategies that work best for their sales range, based around what the CRM information has provided.

What makes a CRM good?

Automation is one of the key parts of a CRM, meaning that information doesn't have to be manually added by staff or clients. 

More complex CRMs team up automation with integrations with other apps and services, so that everything comes together without much interaction required by any department. 

Alongside that, it's helpful for the CRM to be intuitive to use and viewable via the cloud, so that team members aren't constrained to using certain systems.

Key takeaways

There's a lot to learn about CRM software, so if you only take away five pieces of information from this article, take these:

• A CRM stores valuable information about customers. A form of advanced address book at its simplest, a CRM stores all contact information about a client as well as any interactions with them

• A CRM saves businesses money. An efficiently-working CRM ensures that a company can work better and more cost-effectively, saving time and money

• Improved customer relations. Saving customers the effort of repeating themselves improves their view of a business and increases retention rates

• Different CRMs exist. It's important to find the right CRM for your business, so that it matches with budget requirements as well as your needs

• It streamlines work between teams. Departments in a company are able to work more effectively by viewing everything in one place, before breaking down sales analysis and team performance

Further reading

If you're considering a CRM for your business, make sure to look at the best CRM software to find the best provider for you. Our Salesforce review and our Freshworks review cover two leading contenders in comprehensive detail.

It's also important to consider other ways in which software can enhance your business aims. For instance, now is the time to pick the best cloud storage, so that your team can work from any location, while the best VPN can protect your business's data.

What is an example of CRM?

A typical CRM program enables you to import an existing database of contacts (e.g., Google Contacts), edit individual records, create new sales opportunities and advance them through pipeline stages. You can also use it to track team members’ tasks, and export reports with your contact and sales data.

What are 'CRM tactics'?

CRM tactics or strategies are a company-wide plan to help a business grow its revenues and profits, all while reducing costs and enhancing customer relationships. By analyzing how sales have been created and how they have performed, companies can develop strategies that work best for their sales range, based around what the CRM information has provided.

What makes a CRM good?

Automation is one of the key parts of a CRM, meaning that information doesn't have to be manually added by staff or clients. 

More complex CRMs team up automation with integrations with other apps and services, so that everything comes together without much interaction required by any department. 

Alongside that, it's helpful for the CRM to be intuitive to use and viewable via the cloud, so that team members aren't constrained to using certain systems.

Key takeaways

There's a lot to learn about CRM software, so if you only take away five pieces of information from this article, take these:

• A CRM stores valuable information about customers. A form of advanced address book at its simplest, a CRM stores all contact information about a client as well as any interactions with them

• A CRM saves businesses money. An efficiently-working CRM ensures that a company can work better and more cost-effectively, saving time and money

• Improved customer relations. Saving customers the effort of repeating themselves improves their view of a business and increases retention rates

• Different CRMs exist. It's important to find the right CRM for your business, so that it matches with budget requirements as well as your needs

• It streamlines work between teams. Departments in a company are able to work more effectively by viewing everything in one place, before breaking down sales analysis and team performance

Further reading

If you're considering a CRM for your business, make sure to look at the best CRM software to find the best provider for you. Our Salesforce review and our Freshworks review cover two leading contenders in comprehensive detail.

It's also important to consider other ways in which software can enhance your business aims. For instance, now is the time to pick the best cloud storage, so that your team can work from any location, while the best VPN can protect your business's data.

What is an example of CRM?

A typical CRM program enables you to import an existing database of contacts (e.g., Google Contacts), edit individual records, create new sales opportunities and advance them through pipeline stages. You can also use it to track team members’ tasks, and export reports with your contact and sales data.

What are 'CRM tactics'?

CRM tactics or strategies are a company-wide plan to help a business grow its revenues and profits, all while reducing costs and enhancing customer relationships. By analyzing how sales have been created and how they have performed, companies can develop strategies that work best for their sales range, based around what the CRM information has provided.

What makes a CRM good?

Automation is one of the key parts of a CRM, meaning that information doesn't have to be manually added by staff or clients. 

More complex CRMs team up automation with integrations with other apps and services, so that everything comes together without much interaction required by any department. 

Alongside that, it's helpful for the CRM to be intuitive to use and viewable via the cloud, so that team members aren't constrained to using certain systems.

Key takeaways

There's a lot to learn about CRM software, so if you only take away five pieces of information from this article, take these:

• A CRM stores valuable information about customers. A form of advanced address book at its simplest, a CRM stores all contact information about a client as well as any interactions with them

• A CRM saves businesses money. An efficiently-working CRM ensures that a company can work better and more cost-effectively, saving time and money

• Improved customer relations. Saving customers the effort of repeating themselves improves their view of a business and increases retention rates

• Different CRMs exist. It's important to find the right CRM for your business, so that it matches with budget requirements as well as your needs

• It streamlines work between teams. Departments in a company are able to work more effectively by viewing everything in one place, before breaking down sales analysis and team performance

Further reading

If you're considering a CRM for your business, make sure to look at the best CRM software to find the best provider for you. Our Salesforce review and our Freshworks review cover two leading contenders in comprehensive detail.

It's also important to consider other ways in which software can enhance your business aims. For instance, now is the time to pick the best cloud storage, so that your team can work from any location, while the best VPN can protect your business's data.

What is an example of CRM?

A typical CRM program enables you to import an existing database of contacts (e.g., Google Contacts), edit individual records, create new sales opportunities and advance them through pipeline stages. You can also use it to track team members’ tasks, and export reports with your contact and sales data.

What are 'CRM tactics'?

CRM tactics or strategies are a company-wide plan to help a business grow its revenues and profits, all while reducing costs and enhancing customer relationships. By analyzing how sales have been created and how they have performed, companies can develop strategies that work best for their sales range, based around what the CRM information has provided.

What makes a CRM good?

Automation is one of the key parts of a CRM, meaning that information doesn't have to be manually added by staff or clients. 

More complex CRMs team up automation with integrations with other apps and services, so that everything comes together without much interaction required by any department. 

Alongside that, it's helpful for the CRM to be intuitive to use and viewable via the cloud, so that team members aren't constrained to using certain systems.

Key takeaways

There's a lot to learn about CRM software, so if you only take away five pieces of information from this article, take these:

• A CRM stores valuable information about customers. A form of advanced address book at its simplest, a CRM stores all contact information about a client as well as any interactions with them

• A CRM saves businesses money. An efficiently-working CRM ensures that a company can work better and more cost-effectively, saving time and money

• Improved customer relations. Saving customers the effort of repeating themselves improves their view of a business and increases retention rates

• Different CRMs exist. It's important to find the right CRM for your business, so that it matches with budget requirements as well as your needs

• It streamlines work between teams. Departments in a company are able to work more effectively by viewing everything in one place, before breaking down sales analysis and team performance

Further reading

If you're considering a CRM for your business, make sure to look at the best CRM software to find the best provider for you. Our Salesforce review and our Freshworks review cover two leading contenders in comprehensive detail.

It's also important to consider other ways in which software can enhance your business aims. For instance, now is the time to pick the best cloud storage, so that your team can work from any location, while the best VPN can protect your business's data.