The use of a customer relationship management (CRM) system is essential for any company to keep track of customer interactions and data and to improve its prospecting.

The question then arises: how does a CRM actually work?

In this blog post, we’ll try to unravel what’s going on behind the scenes of a CRM system.

How does a CRM system work?

A CRM system is software that helps companies manage their customers. It does this by storing and organizing customer data, tracking their interactions, and providing tools for sales and marketing teams to use this data to improve their prospecting.

There are different types of CRM solutions, but they all share these basic functions. Let’s take a closer look at each of them:

1. Storing and organizing customer data

The primary function of a CRM system is to store customer data. This data can come from LinkedIn analysis or other sources like contact information, purchase history, preferences, and other relevant details.

The CRM system organizes this data so that it is easily accessible and usable by sales and marketing teams.

2. Track customer interactions

The second function of a CRM system is to track customer interactions. This includes all interactions a customer has with your company, such as phone calls, emails, meetings, etc.

The CRM system stores these interactions in the customer profile so that sales and marketing teams can see them and use them to improve their online prospecting.

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3. Provide tools to sales and marketing teams

The third function of a CRM system is to provide tools for sales and marketing teams. These tools help sales and marketing teams use the data stored in the CRM system to improve their prospecting.

For example, they can use contact information to create targeted lists for their campaigns or use purchase history to upsell and cross-sell.

But what else? How does a CRM work?

How does a CRM work?

Generally speaking, the functioning of a CRM is broken down into 4 chronological steps that are similar to the sales process.

Step 1: Improve your lead generation (Marketing)

The first step is to generate leads, that is, to identify potential customers who might be interested in your products or services. To do this, you need to create marketing campaigns to reach your target accordingly with your sales segmentation.

Your CRM software combine with a sales prospecting tool can help you streamline this by providing you with tools to create targeted lists and track the results of your campaigns.

At this stage of the process, the objective is essentially to generate databases of leads at the entrance of the pipeline. The next objective is to convert them into customers.

Step 2: Convert your leads into customers (Sales)

The second step is to convert your prospects into customers, that is to contact them and try to sell them your products or services.

To do this, you must, first of all, have a sales team that will be in charge of contacting the prospects identified by marketing. And what better tool to use than a CRM system?

Indeed, the CRM software will allow you:

  • Assign the right leads to the sales team
  • Qualify the sales leads directly in the tool
  • Convert leads
  • Identify opportunities on a continuous basis

Step 3: Ensure proper delivery and follow-up

The third step in the process is to ensure proper delivery and post-sale follow-up of your products or services.

For this, there are several elements that you will have to pay attention to:

  • Administrative: you will need to make sure that all invoices are sent and paid on time. The CRM allows you to edit, store and transmit all documents related to the business transaction to the right person.
  • Delivery: you will also have to make sure that the delivery goes well, on time and that everything is in order at this level to avoid a return or a friction point.
  • Customer satisfaction: is the customer satisfied with the product or service he has just received, as well as with the support he has had since he became a customer?
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Step 4: Deliver the best customer service and support

In this final stage, the goal is to retain your customers by providing them with impeccable customer service and support.

To achieve this, your team must be attentive to the needs of your customers and know how to satisfy them as quickly as possible. Here again, CRM will prove to be very useful!

As a matter of fact, thanks to some of the software’s features, you will be able to :

  • Keep track of every interaction with each and every customer
  • Detect pain points and the customer dissatisfaction triggers
  • Anticipate needs by proposing solutions before the customer complains
  • Save time in customer care management

Key Takeaway

That’s it for this article on how CRM systems work! A CRM is a powerful tool that can help your business manage customer relationships and sales.

Before choosing your CRM, make sure you understand how the solution works and its compatibility with your existing processes.

This way, you can make the most of its features and improve your bottom line.