What is CRM, actually?

CRM stands for “Customer Relationship Management” and from a customer, sales and marketing perspective can be thought of as the Operating System (O/S) of your business. The “C” (Customer) in CRM can initially be a little confusing, as CRM software plays a vital role in the management and acquisition of leads / prospects, however CRM software covers past, present and potential customers. CRM systems allow businesses to learn more about their target audiences and how to better cater to their needs, thus enabling both retaining customers and driving sales growth. The market size for CRM software was estimated at $69 billion USD in 2020, meaning that there are a large number of CRM systems available, all offering different features. At a very high level, the three areas of functionality you may find in a CRM are listed below:

1. Customer Data Platform

At the heart of every CRM system is a database of organizations and individuals. A well organized and up-to-date database of your company’s contacts, be they organizations or individuals, existing customers or potential customers is a foundation for sales and marketing operations. The contacts database of a CRM will enable you to classify your contacts; essential to knowing who, how and when to contact existing and potential customers. An effective contacts database is:

• Up to date People move companies, move address and change contact details. Your CRM should be plugged in to every aspect of your business, so that information can flow back to your CRM
• Duplicate free Duplicate records cause confusion and can lead to a poor customer experience.
• Comprehensive The more information you have on your customers and leads the better you are able to support them.
• Integrated. Your CRM software should integrate with as many of your business functions as possible, this enables a powerful ‘single pane of glass’ view of a customer. Some CRM systems are also able to integrate with systems outside of your organization such as social media platforms.
• Exploitable. Your CRM data is one of your biggest business assets. The data held in your CRM should be able to be visualized and analyzed. This analysis can help drive strategic decision making

2. Sales team and opportunity management

A company’s sales force, large or small, represents a significant investment. Companies want to ensure that business opportunities are being well managed and their sales teams are effective. For this reason some CRM systems offer organizations the ability to manage and report on the opportunity pipeline and manage their sales force.

3. Marketing automation

At the “front end” of some CRM systems is the ability to reach customers and especially potential customers. For this reason many CRM systems are able to plug into a variety of sales and marketing channels (sometimes known as an Omnichannel strategy):

• Campaign management
• Email marketing
• SMS messaging
• Social media
• Website
• Online advertising / digital marketing. Reaching channels such as search advertising, website affiliate channels and so on.

4. And more?

CRM has become a bit of a catch-all term when it comes to business software. For this reason you will find products that bill themselves as CRM software including areas that have not been traditionally thought of as part of a CRM. If you are looking for a CRM you need to be clear as to whether you are looking for an all-in-one solution or would benefit from more powerful, specialist solutions for these functions. Features you will find in some CRMs include:

• Customer Service and support. Including features such as knowledge management, self-service portal, help desk etc
• Contact Centre management. Including features such as Agent and queue management, inbound call routing etc
• Product and price list
• Quoting and invoicing
• Project Management
• Office and collaboration. Including meetings, calendar management etc

Popular CRM software in the New Zealand SME market

Popular CRM software for small and medium sized organisations in New Zealand include:

• Salesforce Salesforce is the ‘OG’ of CRM software, however its complexity can mean a time investment in getting the most out of this software.
• Hubspot. The full Hubspot suite can be expensive, however the company does offer starter plans.
• SugarCRM SugarCRM started out as free, open-source software but are now a private company with their own software
• Zoho Zoho offers a large range of business modules, including CRM

How Voyzu can help

We love CRM. Infact we have built our own CRM software, which we will be releasing soon! We’d love to hear about which CRM you have chosen or are considering. Get in touch with us now!

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