What is CRM? Everything you need to know about Customer Relationship Management

In this guide, we explore the benefits CRM tools offer businesses and an overview of how they work. We also dive into which professionals should consider a CRM system and how much you can expect to pay for one. 

What is CRM software?

CRM software is a business tool that helps teams efficiently organize the customer buying journey from a cold lead to a closed deal. CRM tools track each stage of the sales pipeline, organize customer and prospect data and communication history, aid team members with outreach reminders, and more. 

What a CRM can’t do

Before you invest in buying and implementing CRM software, it’s crucial to decide if your team needs one. In the modern age of artificial intelligence (AI) and Generative AI, many teams are looking for tools that reduce the need for staff to reduce costs. However, CRMs don’t reduce the need for sales, marketing, and customer service staff, but they do help manage the work of those teams effectively. 

Before you decide to invest in a CRM tool, keep in mind that they cannot: 

• Guarantee more sales are won: CRM platforms streamline and make the sales journey more effective for teams, but they can’t complete the outreach for you or close deals automatically. 
• Replace staff: Just as a CRM can’t guarantee you close a sale, it can’t mimic human behavior and provide the human touch that a salesperson or customer service agent can. CRMs are meant to help your team become more efficient, identify customer behaviors and buying patterns, and automate some manual processes―but not replace them. 
• Create a sales process and update data automatically: Many CRM systems offer AI features that automate some parts of the sales process, you still need to set up your sales process in the first place and make tweaks as you go. An excellent CRM provider will offer onboarding services to help you get started and provide ample support along the way. 

How do CRM systems work?

CRM platforms work by acting as a central place to store customer and lead information. They can organize and segment customer data with fields, such as: 

• Geographic locations
• Budget and buying history
• Type of industry
• Company size 
• Title or business…