What is CRM?

Customer Relationship Management (CRM) is the combination of practices, strategies, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. The primary goal of CRM is to improve customer service relationships and assist with customer retention and drive sales growth. CRM has evolved from a simple contact management system to a comprehensive platform that integrates various aspects of a business, including sales, marketing, and customer service. The key drivers behind the evolution of CRM include the increasing importance of customer-centricity, the rise of digital technologies, and the need for businesses to better understand and serve their customers.

Example from GreeneStep: Imagine a small retail business that uses GreeneStep’s CRM to track customer inquiries, manage leads, and follow up on sales opportunities. The system allows them to maintain a centralised database of customer information, and track communication history when collaboration is the mode of communication

Key Concepts in CRM

Customer-Centric Approach

At the heart of CRM is a customer-centric approach, where the focus is on understanding and meeting the needs of the customer. This involves collecting and analyzing customer data to gain insights into their preferences, behaviors, and pain points, and then using this information to deliver personalized and relevant experiences.

Integrated Data Management

CRM systems consolidate customer information from various touchpoints, such as the company’s website, telephone, email, and social media, into a single database. This allows businesses to have a 360-degree view of the customer, enabling them to better understand their needs and provide more personalized service.

Automation and Workflow Optimization

CRM systems often include automation capabilities that streamline various sales, marketing, and customer service tasks, such as lead management, email campaigns, and customer support. This helps businesses to improve efficiency, reduce manual effort, and provide faster and more consistent service to customers.

Analytics and Reporting

CRM systems typically include robust analytics and reporting features that allow businesses to track and analyze customer data, such as purchase history, interaction patterns, and satisfaction levels. This data can then be used to identify trends, make data-driven decisions, and optimize customer-facing strategies.

Multichannel Engagement

Modern CRM systems enable businesses to engage with customers across multiple channels, such as email, social media, and mobile apps. This allows for a more seamless and consistent customer experience, as well as the ability to gather data from various touchpoints.

Collaboration and Alignment

CRM systems can help break down silos within an organization, enabling different departments, such as sales, marketing, and customer service, to collaborate and align their efforts to provide a better customer experience.

Importance of CRM

1. Enhanced Customer Service: CRM systems provide customer-facing staff with detailed data on customers’ personal information, purchase history, and preferences, enabling them to provide better and faster customer service.
2. Improved Customer Retention: By understanding customer needs and preferences, businesses can develop more personalized and relevant offerings, leading to increased customer satisfaction and loyalty.
3. Increased Sales and Revenue: CRM systems can help businesses identify and target the most promising leads, streamline the sales process, and cross-sell and upsell to existing customers, ultimately driving sales growth.
4. Better Decision-Making: The data and insights provided by CRM systems can help businesses make more informed decisions about product development, marketing strategies, and resource allocation.
5. Increased Operational Efficiency: CRM automation and workflow optimization can help businesses reduce manual effort, eliminate redundancies, and improve overall operational efficiency.
6. Improved Collaboration and Alignment: CRM systems can foster better collaboration and alignment between different departments, leading to a more cohesive and effective customer-facing strategy.
7. Enhanced Brand Reputation: By providing excellent customer service and building strong relationships with customers, businesses can enhance their brand reputation and differentiate themselves from competitors.

Various Aspects of CRM: 

1. Setup and Configuration: GreeneStep assists businesses in setting up and configuring their processes efficiently. This involves defining workflows, roles, permissions, and automating routine tasks.
2. Users / Employees Access: This refers to the ability of employees to log into the ERP or CRM system and use its features. For example, a salesperson might access the CRM to update customer contact details.
3. Reporting Managers: These are supervisors who oversee employees’ work. In an ERP system, a reporting manager might use dashboards to monitor team performance.
4. Departments and Designations: This indicates the different areas of a company, like Sales or HR, and the job titles within them. An ERP system like GreeneStep might have different modules for each department.
5. Organization Chart: A visual representation of the company’s structure. An ERP system might display this chart to show who reports to whom.
6. Segregation of Duties / Access Rights: Ensuring employees only have access to the parts of the system relevant to their job to prevent fraud. For instance, in an ERP system, only accountants might have access to financial records. This defines what each employee is supposed to do. In a CRM, a user group for customer service reps would have access to service requests and customer feedback is another example.
7. Sales Employees Performance Management: Tracking and evaluating the performance of sales staff. A CRM might track sales targets and actual sales to assess performance.
8. Performance Management: GreeneStep’s solutions enable performance tracking and measurement. Businesses can monitor key performance indicators (KPIs), analyse data, and make informed decisions.
   Example from GreeneStep: A distribution company uses GreeneStep’s analytics module to assess sales performance across different regions. They track metrics like revenue, order fulfilment time, and customer satisfaction. Based on these insights, they optimize their sales strategies and allocate resources effectively.
9. Communication and Collaboration: GreeneStep emphasizes collaboration by providing tools for internal and external communication. Teams can collaborate on projects, share documents, and stay connected.
   Example from GreeneStep: An ecommerce start-up uses GreeneStep’s collaboration features to coordinate with suppliers, manage inventory, and communicate with customers. The system facilitates seamless communication, ensuring timely order fulfillment and customer support.
10. Business Process Setup: GreeneStep’s ERP and CRM systems allow businesses to set up end-to-end processes, integrating various functions like finance, inventory, sales, and customer service.
    Example from GreeneStep: A services company adopts GreeneStep’s integrated suite to manage its entire business process. From project management to invoicing, they have a unified platform. For instance, when a project is completed, the system and updates financial records.

Use Cases (How It Works in a Company):

• Let’s explore specific scenarios:
  • Sales Order Processing:
    • A distributor receives a sales order for a batch of products. GreeneStep’s system captures the order details, checks inventory availability, and generates a purchase order for restocking if needed.
  • Customer Support:
    • A retail store uses GreeneStep’s CRM to handle customer inquiries. When a customer calls about a defective product, the system creates a support ticket, assigns it to the relevant team, and tracks the resolution process.
  • Financial Management:
    • A services firm manages its finances using GreeneStep’s accounting module. They create invoices, track payments, and reconcile accounts—all within the same system.
  • Inventory Control:
    • A manufacturer monitors inventory levels using GreeneStep. When stock reaches a reorder point, the system triggers a purchase order to replenish supplies.