I. What is CRM & What is CRM System?

CRM stands for Customer Relationship Management.

CRM (Customer Relationship Management) refers to customer relationship management software, which focuses on managing, tracking and optimizing interactions between businesses and customers. CRM software helps businesses build long-term relationships with customers, improve their experience and increase sales, marketing and customer service performance.

Meanwhile, CRM systems in addition to CRM software will need human resources and related processes to operate. CRM systems will have larger goals than CRM software when aiming at long-term profits, revenue and brand value.

CRM system is a collection of technological resources (platforms, software, tools, etc.) and people that work together to manage a business's customer relationships with the goal of bringing revenue, profits to the business and brand value as well as customer relationships.

Simply put, a CRM system is a technology solution designed to support businesses in all stages of Marketing - Sales - Customer Care. This support aims to help businesses form and develop relationships with customers to optimize processes, enhance customer relationships, improve customer retention rates and promote sales growth.

In addition, CRM system also supports sales management; provides useful detailed information related to customers, sales; integrates with media and helps coordinate the exchange of information and data between individuals in the Sales department and between departments become easier and more effective.

CRM software  is a tool that helps businesses store, analyze and report all customer information, interaction history, transaction history, and access history, helping businesses connect comprehensively with customers, standardize the entire business process, increase work efficiency and improve revenue.

A complete CRM system helps businesses manage customer data including demographic information, behavior, interests, and customer interactions with the business.

“ If customer relationships are the heart of business success, then CRM systems are the lifeblood of a company.” Therefore, CRM systems are best suited for businesses to use people, processes and technology to gain deeper insights into customer behavior and value.

In the scope of this article as well as many other documents on the Internet, CRM systems often only refer to technological factors, specifically platforms, software, tools... (CRM software - customer management software ).

II. Specific benefits of CRM system for businesses

Not all leads are created equal. Some provide personal information simply to download a document; others are in the consideration stage, needing only to resolve lingering concerns to be converted successfully. And how to know who to contact, when to close the sale, this is where you will need a CRM system.

CRM functions help to deeply analyze past customer behavior to find common rules and criteria. These can be:

• Metrics such as website visit frequency, time spent on page, number of emails opened, frequency of ad views, etc.
• Notes through consulting activities such as level of interest, concerns about price….

1. Store and update customer information centrally

CRM system allows storing customer data, potential customers, tracking interactions between customers and sales staff of the business. And this data can be shared within the department (depending on the authorization on the system). This helps the business not to depend on any individual employee, even when they leave.

In addition, with a large amount of customer data, including a lot of information, if managed in the usual way, it will easily lead to data that is no longer accurate (because it can change over time). The CRM customer relationship management system is a tool that helps you eliminate this because it always updates the latest information from customers that employees record.

2. Record interactions and transactions with customers

The CRM system stores every phone call, email, text message, quote, etc. that a sales rep has sent to a customer. In addition, appointments and notes about the customer are recorded in the system, helping other employees understand what the next steps are. This ensures that sales opportunities are not missed.

Not only that, this also helps to keep all customer data updated and stored securely, avoiding loss when employees leave.

3. Allocate resources to sales opportunities

Most businesses do not know how to allocate resources to sales opportunities or allocate based on emotions and subjective judgments.

If using CRM system, managers will grasp the workload of each sales staff, understand the nature of sales opportunities to allocate the right customers to the right sales staff. This helps to always have the highest sales closing rate.

If you do not know how to choose CRM software suitable for your business, you can refer to the article at the link.

4. Help guide business 

CRM system updates and synthesizes data regularly, turning that data into useful business-oriented information for the enterprise.

Through business reports on CRM tools, businesses will understand trends, customer behavior, which types of goods are popular, which markets are developing, etc. From there, it is easy to make correct and accurate business decisions.

5. Breakthrough revenue from existing customers

One of the meanings of CRM system is to help businesses exploit customer data effectively. Having complete customer data, businesses can easily understand them better, thereby recognizing their needs to bring appropriate and timely products and services.

This makes cross-selling and upselling products and services easier, helping businesses increase revenue from existing customers.

6. Remote management of business operations

With the CRM system on the On Cloud platform, managers can access data anytime, anywhere via mobile devices and personal computers while still ensuring data safety and security.

Read more: 11+ Best Effective Business Management Software

III. 7 functions of CRM

Thanks to the CRM customer relationship management system, transaction staff will easily recognize many customer objects, coordinate with other technical departments in the company to carry out marketing, sales and service activities appropriately, CRM functions to optimize profits and bring the highest satisfaction to customers.

In general, CRM system has the following basic functions.

1. CRM functions help businesses manage contacts

All the latest information about customers: from contact details to conversations, product interactions… can be easily updated and looked up. This is a key function of the CRM system.

Using CRM tools will help upload data from Excel, classify by age, gender, region... of customers so that businesses can easily manage customer data. Besides, this data source is also more carefully secured through many layers of protection.

A crm customer relationship management system allows businesses to track the activities, tasks, and goals of the sales process, from capturing leads to converting them into leads and finally converting them into customers.

2. The function of CRM is sales management.

With this CRM function, the system will track the entire sales process, from generating leads, converting them into customers, to closing the deal. Businesses can easily manage information about warranty requests, support, customer complaints, call schedules, and customer transactions through this customer service management function of the crm system.

In addition, CRM System helps track the entire sales process, from lead generation to closing. It provides sales forecasting, pipeline tracking, and business opportunity management.

The CRM system also helps the sales team interact with customers via multiple channels such as calling, sending emails, sending SMS, receiving feedback, complaints, implementing promotional programs, gratitude, etc. right in one window of this tool without having to move too much.

3. Sales reporting & forecasting (revenue, sales)

Reports on revenue, sales, conversion rates, etc. allow sales staff to have a clearer view of their sales performance (monthly target achievement, effectiveness through each step of the sales process, etc.). Furthermore, the sales forecasting function also helps them identify the most potential customers to allocate resources to. In addition, sales department managers can use these reports to promptly support, motivate and manage their employees.

Read more: Vinamilk's ERP system model and the story of successful breakthrough

4. The function of CRM is to manage the sales team. 

CRM systems help manage work schedules, schedule appointments, and track customer-related activities such as calls, emails, meetings, and conferences. Reminder features help sales and customer service staff not miss important appointments or customer contact opportunities.

Sales staff can also interact with each other through messaging and commenting features on the CRM system, helping them grasp and update tasks easily and quickly. And through that, managers can also monitor, check and support employees when needed.

5. Marketing automation function

CRM systems allow businesses to use and inherit databases to move towards marketing automation. Campaigns that can be automated on CRM include email marketing, targeted advertising, and customer segmentation.

For example, businesses can send emails to customers according to a script and receive statistics and full reports on the open and click rates of recipients. From there, businesses can evaluate the level of interest and effectiveness of email campaigns. Through reports from the CRM system tool, businesses will have a basis to adjust content or identify other methods of interacting with customers more effectively.

CRM functionality allows you to automatically take care of customers via email or remarketing on social platforms based on pre-built 'scenarios'.

For example, you can set up automatic emails about offers/promotions in your CRM system as soon as a customer has added items to their cart but left without checking out.

Some CRM systems also have the ability to help you create email sequences based on the behavior of specific groups of people about trends, suggestions, or answers to questions they may have.

6. Report-based data analysis function

On the Dashboard, business report screens are displayed using intuitive charts. Depending on the user's wishes, they can search for the report they want to see. From these reports, managers can easily see an overview of the business situation, thereby analyzing and orienting the next business plan.

Above are the basic functions of the crm system. However, current CRM systems do not stop at basic functions but are continuously upgraded and improved with many of the latest features and technologies to support businesses in comprehensively managing customer relationships and some other business and sales activities.

7. Integration with other systems

An important function of a CRM system is to integrate with other software such as ERP, accounting software, marketing, email systems, and social networks. This helps synchronize data between departments, optimize workflows, and create a consistent customer experience.

Illustration of EDUTO CRM solution integrated with multiple platforms

In addition to the above basic functions, CRM customer relationship management software also has other functions such as: Automating the sales process, order verification process, quotation export function, helping to manage support and take care of customers more thoughtfully. From there, businesses can build better relationships with current customers, increase the number of customers and can do long-term business with old customers.

Read more: What is digital conversion? 4.0 trend: Digital transformation

IV. 5 steps to build a complete CRM system

In the context of a competitive market, businesses cannot ignore a useful tool like CRM. Success in building a CRM system must come from both management and the right awareness of employees. Do not skip the following steps if you want to build an effective and professional CRM system for your business.

1. Identify business goals and needs

The first step in building a CRM system is to clearly define the business goals you want to achieve. This could include improving the customer experience, increasing sales, improving marketing effectiveness, or optimizing customer service.

Next, businesses need to assess their own needs by analyzing their current business processes to determine the specific requirements for the appropriate CRM tool. This analysis should include understanding the needs of the sales, marketing, and customer service departments, and determining the features that the CRM should have.

2. “Match” CRM strategic orientation with business strategy

CRM strategy must be consistent with the overall strategy of the enterprise. In short, everything is directed towards a final, clear and specific goal. Enterprises will not be able to create value when the strategies in general and CRM strategy in particular are not consistent and related to each other.

3. Choose and customize the right CRM solution

• Choose CRM Type: Based on your needs and budget, you need to decide between On-Cloud or On-Premises CRM. Consider factors like scalability, cost, security, and technical requirements.
• Customize the system: After choosing a CRM solution, the next step is to customize the system according to the business processes of the enterprise. Integrate with existing software (ERP, accounting, marketing) and set up features such as customer management, sales management, support services, etc.

4. Team training and system implementation

Building an effective CRM system requires a content plan that is as detailed as possible. Defining a content strategy is deciding how to use social media or communicate with customers?

Make sure your sales, marketing, and customer service teams are trained on how to use your CRM system effectively. Conduct training sessions and provide documentation so they can get the most out of your CRM's features.

Implement a comprehensive CRM system across the enterprise. Monitor the implementation process and promptly resolve any issues that arise. It can be implemented in phases (e.g. starting with the sales department first) to reduce risk.

5. Monitor, Evaluate and Optimize

• Track performance: Use analytics and reporting tools within your CRM system to track the performance of your business processes, marketing campaigns, and customer service.
• Collect feedback: Continuously collect feedback from employees and customers to evaluate the effectiveness of the CRM system. Identify problems and barriers during use and record comments for improvement.
• Optimize: Based on monitoring results and feedback, make adjustments and optimize the CRM system. Add new features, improve processes, and update data to keep the CRM system responsive to changing business needs.

Read more: Guide to choosing the right business management software

V. 5 popular types of CRM systems

• CRM On-Premises: The system is installed and hosted on the business's internal server, allowing complete control over security and data.
• CRM On-Cloud: Deployed and hosted in the cloud, accessed via the internet. This is a popular choice because it is easy to deploy, cost-effective, and accessible from anywhere.
• Open source CRM : CRM systems have open source code, allowing businesses to customize according to specific needs. For example, SuiteCRM, Odoo CRM , ... are open source CRM software.
• Packaged CRM: CRM customer relationship management solution is developed and provided by software vendors. This CRM system includes a set of standard features, designed to meet the common customer management needs of businesses in many different fields. For example, EDUTO CRM for Maybelline is a packaged CRM software that fully meets sales management requirements for all industries and fields.
• Customized CRM: Developed according to the specific requirements of the business, suitable for companies with complex processes and specific requirements.

Conclude

Above is the most specific and detailed information about the CRM system that you need to know. Before choosing a CRM customer relationship management system, the first thing a business needs to do is to correctly identify its problems and desires in business management in general and customer relationship management in particular.

EDUTO with a team of experienced consultants, deeply understanding CRM solutions on the market, is always ready to support businesses in choosing the most suitable solution at the most optimal cost!