TL;DR
Demystify CRM software: discover what it is, its key benefits, and how it works to supercharge your business.
– Centralize customer & sales data for easier lead management.
– Understand customer behavior to personalize sales and service.
– Streamline prospecting, sales, and customer service with automation.
– Improve customer loyalty by offering tailored experiences.
– Integrate with sales prospecting tools like LaGrowthMachine to boost lead generation by 3.5x.
Ready to automate your prospecting? Test La Growth Machine for free for 14 days
Start free trialTable of contents
In recent years, CRM software has become widely used by companies of all sizes.
And with good reason, Customer Relationship Management (CRM) is one of the areas with the most stakes in sales.
In this context, numerous CRM systems have arrived on the market. So, what is CRM software? What is its purpose? And how does CRM software work?
In this guide, we’ll explain everything you need to know about CRM software so that you can make an informed decision about whether or not a CRM system is right for your company.
We’ll also recommend some of the best CRM programs on the market, so you can find the right one for your business.
So what are you waiting for? Keep reading to learn more!
What is CRM software?
CRM software is any tool that was first designed to help businesses manage their customer relationships. In reality, they do much more than that…They’re so versatile, you can use them for almost everything;
- To track and store customer data, sales data, and contact information.
- Use the data collected by the program to understand customer needs and behavior better.
- To improve the efficiency of your prospecting and customer service processes.
- As a recruiting automation tool to follow and organize candidates in their recruitment and onboarding processes.
- To create automated marketing campaigns or manage events
The best CRM programs are there to help businesses close more sales, improve customer satisfaction, and in turn, increase customer loyalty.
In addition, CRM software often include features such as customer support and marketing automation.
These features can further help businesses streamline their operations, increase efficiency and drive sales!
Quick Tip 💡
Unlike what many believe CRM software is used by sales teams and customer service teams, not just by marketing teams. In fact, the best CRM solutions are the ones that can be used by all departments of a company.
What are the benefits of CRM software?
As we have already discussed, CRM software is not only used to manage customer relationships, but also to improve the productivity of sales teams and optimize the sales funnel.
In other words, CRM software can have a direct impact on your bottom line. Additionally, CRM software provides numerous other benefits:
The last step is to generate reports that will help you track your progress and make sure your CRM system is working properly.
The first step, and the most crucial, is to collect customer data. In order for the CRM modules to function properly, they simply need to be fed with data.
There are several ways to collect customer data, but the most common is to simply have your sales and customer service teams input it manually into the system.
Another option is to use a data-capture system, which automatically collects customer information from various sources (such as your website’s contact forms, live chat transcripts, etc.) and inputs it into the CRM.
Once the data is in the system, it then analyzes it so you can manage your customers effectively.
Step 2. Use the data to improve your sales & marketing processes:
The data collected in the first step is then used to improve your sales and marketing processes.
For example, if you notice that a particular type of customer is unsubscribing from your emails at a higher rate than others.
You can use this information to segment your contact lists and send more targeted emails in the future.
Or, if you see that certain marketing campaigns are generating many leads but these leads aren’t converting properly (say for instance, a Twitter marketing campaign, those usually don’t drive a lot of conversion)..
You can use the data to improve some of your sales processes like sales targeting so that more leads are converted into customers.
Step 3. Generate reports:
The last step is to generate reports that will help you track your progress and make sure your CRM system is working properly.
- Data storage, analysis & reporting: The whole point of a CRM system is to help you manage your customer relationships. As such, your program must be able to store all your customer data in one central location. You need to analyze this data so you can better understand customer needs and behavior. This is so you can generate reports that will help you improve your digital sales and customer service processes. This will make it much easier for you to keep track of your customers and their needs.
- Integrated marketing campaigns: It should also include features that will help you automate and optimize your marketing campaigns. In other words, your program should be able to segment your contact lists, schedule and send targeted emails, track results (opens, clicks, unsubscribed…), etc.
- Customer service features: If you want to offer your customers the best possible experience, then you need to invest in a CRM system that includes features specifically designed for customer service. These features could include a ticketing system, a knowledge base, live chat, etc.
- A better yield per lead: by promoting a better customer relationship, the CRM software improves your upsell rate and contributes directly to your revenue.
- Exportable data: It’s important to make sure that your CRM system allows you to export your data so you can use it however you see fit. It also allows you to work with other tools and systems (marketing automation, accounting, etc.)
These are just some of the features you should look for in a CRM system.
CRM software programs are constantly evolving and new features are being added all the time.
Of course, the specific features you need will depend on your business’s size, needs, and budget.
How does CRM software work?
Now that you know all about CRM software, let’s take a closer look at how they work.
In general, most CRM systems work in a similar way. They’re composed of several modules that each correspond to a specific task or process.
Here’s an overview of the steps involved in using a CRM system:
Step 1. Collect & Analyze customer data:
The first step, and the most crucial, is to collect customer data. In order for the CRM modules to function properly, they simply need to be fed with data.
There are several ways to collect customer data, but the most common is to simply have your sales and customer service teams input it manually into the system.
Another option is to use a data-capture system, which automatically collects customer information from various sources (such as your website’s contact forms, live chat transcripts, etc.) and inputs it into the CRM.
Once the data is in the system, it then analyzes it so you can manage your customers effectively.
Step 2. Use the data to improve your sales & marketing processes:
The data collected in the first step is then used to improve your sales and marketing processes.
For example, if you notice that a particular type of customer is unsubscribing from your emails at a higher rate than others.
You can use this information to segment your contact lists and send more targeted emails in the future.
Or, if you see that certain marketing campaigns are generating many leads but these leads aren’t converting properly (say for instance, a Twitter marketing campaign, those usually don’t drive a lot of conversion)..
You can use the data to improve some of your sales processes like sales targeting so that more leads are converted into customers.
Step 3. Generate reports:
The last step is to generate reports that will help you track your progress and make sure your CRM system is working properly.
- Store all customer data in one place. The best CRM programs allow businesses to store all customer data in one central location. This makes your lead management process that much easier.
- Better understand customer needs and behavior. Specifically thanks to the first point, CRM software also allows businesses to better understand their customers. In other words, you can use the data collected by your CRM system to improve your customer service and your sales process.
- Streamline sales and customer service processes: CRM software can also help businesses streamline their sales and customer service processes. By automating repetitive tasks, CRM programs can free up time for your sales and customer service teams.
- Improve customer loyalty: Finally, thanks to the data collected by your CRM system, you can offer your customers a more personalized experience. As a result, you are more likely to improve customer loyalty and satisfaction.
These are just some of the benefits that CRM software can provide. In short, if you’re looking to increase your bottom line, you need to consider investing in a CRM solution.
We haven’t even mentioned the benefits you get from syncing your CRM with sales prospecting tools and other third-party applications.
In a nutshell, having all your customer data in one place makes it easier for you to manage leads, monitor marketing efforts, and track customer engagement.
What are the main features of CRM software?
With the myriad of solutions that exist on the market, it’s important to understand what features you need before investing in a CRM program.
Here are some of the most important features to look for:
- Data storage, analysis & reporting: The whole point of a CRM system is to help you manage your customer relationships. As such, your program must be able to store all your customer data in one central location. You need to analyze this data so you can better understand customer needs and behavior. This is so you can generate reports that will help you improve your digital sales and customer service processes. This will make it much easier for you to keep track of your customers and their needs.
- Integrated marketing campaigns: It should also include features that will help you automate and optimize your marketing campaigns. In other words, your program should be able to segment your contact lists, schedule and send targeted emails, track results (opens, clicks, unsubscribed…), etc.
- Customer service features: If you want to offer your customers the best possible experience, then you need to invest in a CRM system that includes features specifically designed for customer service. These features could include a ticketing system, a knowledge base, live chat, etc.
- A better yield per lead: by promoting a better customer relationship, the CRM software improves your upsell rate and contributes directly to your revenue.
- Exportable data: It’s important to make sure that your CRM system allows you to export your data so you can use it however you see fit. It also allows you to work with other tools and systems (marketing automation, accounting, etc.)
These are just some of the features you should look for in a CRM system.
CRM software programs are constantly evolving and new features are being added all the time.
Of course, the specific features you need will depend on your business’s size, needs, and budget.
How does CRM software work?
Now that you know all about CRM software, let’s take a closer look at how they work.
In general, most CRM systems work in a similar way. They’re composed of several modules that each correspond to a specific task or process.
Here’s an overview of the steps involved in using a CRM system:
Step 1. Collect & Analyze customer data:
The first step, and the most crucial, is to collect customer data. In order for the CRM modules to function properly, they simply need to be fed with data.
There are several ways to collect customer data, but the most common is to simply have your sales and customer service teams input it manually into the system.
Another option is to use a data-capture system, which automatically collects customer information from various sources (such as your website’s contact forms, live chat transcripts, etc.) and inputs it into the CRM.
Once the data is in the system, it then analyzes it so you can manage your customers effectively.
Step 2. Use the data to improve your sales & marketing processes:
The data collected in the first step is then used to improve your sales and marketing processes.
For example, if you notice that a particular type of customer is unsubscribing from your emails at a higher rate than others.
You can use this information to segment your contact lists and send more targeted emails in the future.
Or, if you see that certain marketing campaigns are generating many leads but these leads aren’t converting properly (say for instance, a Twitter marketing campaign, those usually don’t drive a lot of conversion)..
You can use the data to improve some of your sales processes like sales targeting so that more leads are converted into customers.
Step 3. Generate reports:
The last step is to generate reports that will help you track your progress and make sure your CRM system is working properly.
- Store all customer data in one place. The best CRM programs allow businesses to store all customer data in one central location. This makes your lead management process that much easier.
- Better understand customer needs and behavior. Specifically thanks to the first point, CRM software also allows businesses to better understand their customers. In other words, you can use the data collected by your CRM system to improve your customer service and your sales process.
- Streamline sales and customer service processes: CRM software can also help businesses streamline their sales and customer service processes. By automating repetitive tasks, CRM programs can free up time for your sales and customer service teams.
- Improve customer loyalty: Finally, thanks to the data collected by your CRM system, you can offer your customers a more personalized experience. As a result, you are more likely to improve customer loyalty and satisfaction.
These are just some of the benefits that CRM software can provide. In short, if you’re looking to increase your bottom line, you need to consider investing in a CRM solution.
We haven’t even mentioned the benefits you get from syncing your CRM with sales prospecting tools and other third-party applications.
In a nutshell, having all your customer data in one place makes it easier for you to manage leads, monitor marketing efforts, and track customer engagement.
What are the main features of CRM software?
With the myriad of solutions that exist on the market, it’s important to understand what features you need before investing in a CRM program.
Here are some of the most important features to look for:
- Data storage, analysis & reporting: The whole point of a CRM system is to help you manage your customer relationships. As such, your program must be able to store all your customer data in one central location. You need to analyze this data so you can better understand customer needs and behavior. This is so you can generate reports that will help you improve your digital sales and customer service processes. This will make it much easier for you to keep track of your customers and their needs.
- Integrated marketing campaigns: It should also include features that will help you automate and optimize your marketing campaigns. In other words, your program should be able to segment your contact lists, schedule and send targeted emails, track results (opens, clicks, unsubscribed…), etc.
- Customer service features: If you want to offer your customers the best possible experience, then you need to invest in a CRM system that includes features specifically designed for customer service. These features could include a ticketing system, a knowledge base, live chat, etc.
- A better yield per lead: by promoting a better customer relationship, the CRM software improves your upsell rate and contributes directly to your revenue.
- Exportable data: It’s important to make sure that your CRM system allows you to export your data so you can use it however you see fit. It also allows you to work with other tools and systems (marketing automation, accounting, etc.)
These are just some of the features you should look for in a CRM system.
CRM software programs are constantly evolving and new features are being added all the time.
Of course, the specific features you need will depend on your business’s size, needs, and budget.
How does CRM software work?
Now that you know all about CRM software, let’s take a closer look at how they work.
In general, most CRM systems work in a similar way. They’re composed of several modules that each correspond to a specific task or process.
Here’s an overview of the steps involved in using a CRM system:
Step 1. Collect & Analyze customer data:
The first step, and the most crucial, is to collect customer data. In order for the CRM modules to function properly, they simply need to be fed with data.
There are several ways to collect customer data, but the most common is to simply have your sales and customer service teams input it manually into the system.
Another option is to use a data-capture system, which automatically collects customer information from various sources (such as your website’s contact forms, live chat transcripts, etc.) and inputs it into the CRM.
Once the data is in the system, it then analyzes it so you can manage your customers effectively.
Step 2. Use the data to improve your sales & marketing processes:
The data collected in the first step is then used to improve your sales and marketing processes.
For example, if you notice that a particular type of customer is unsubscribing from your emails at a higher rate than others.
You can use this information to segment your contact lists and send more targeted emails in the future.
Or, if you see that certain marketing campaigns are generating many leads but these leads aren’t converting properly (say for instance, a Twitter marketing campaign, those usually don’t drive a lot of conversion)..
You can use the data to improve some of your sales processes like sales targeting so that more leads are converted into customers.
Step 3. Generate reports:
The last step is to generate reports that will help you track your progress and make sure your CRM system is working properly.
Written by
Comments
So La Growth Machine doesnt have a CRM built in?
Hi John,
No, La Growth Machine is a multi-channel sales automation tool that you use in conjunction with your CRM. That said, we do have a native integration with HubSpot and Pipedrive, along with a Zapier integration for the lesser known CRMs, so you can have a streamlined sales process!