A Guide To CRM Systems

What are CRM systems?

Customer Relationship Management (CRM) systems are essential tools and technologies businesses use to create and manage meaningful, lasting relationships with their customers. These centralized platforms store, organize, and analyze valuable customer data such as contact information and interaction history, allowing companies to gain insights into customer preferences and behaviors to tailor their offerings and marketing strategies.

CRM systems are primarily used to enhance customer engagement and satisfaction. By automating tasks like email and SMS marketing, tracking inquiries, and offering extensive customer support, businesses can provide more efficient, personalized services. 

These systems can also play a pivotal role in sales management. CRMs allow teams to follow leads, opportunities, and sales activities in a cohesive, collaborative way. This functionality helps businesses forecast revenue, prioritize leads, assess their performance, and make data-driven decisions.

In essence, properly implemented CRMs are indispensable in today’s competitive business landscape and enable organizations to leverage data, streamline operations, and provide exceptional customer experiences.

Why do businesses need CRM systems?

CRMs are crucial for businesses in the modern marketplace. They provide customer insights, streamlined customer service, efficient sales management, targeted marketing, centralized data storage, and data-driven decision-making that gives companies a competitive advantage. By analyzing customer data, businesses can tailor their products and strategies to meet customer needs. Automation in CRM systems enhances customer service, while efficient sales and marketing tools lead to increased revenue. Ultimately, businesses need CRMs to build strong customer relationships, drive growth, and stay ahead of the competition.

What are the benefits of CRM systems?

Although CRM systems offer countless benefits, there are a few that stand out across industries:

• Enhanced customer relationships: CRM systems enable companies to grow lasting, meaningful relationships with customers through personalized interactions via email, chat/other and using stored data to enhance customer service. This also reduces churn and increases customer lifetime value.

• Improved sales efficiency: By helping sales teams manage leads, track opportunities, and automate routine tasks, CRMs streamline sales processes.

• Targeted marketing: Insights provided by CRMs help businesses understand customer preferences and behavior, allowing them to create personalized marketing campaigns. This leads to a better return on marketing investments.

• Streamlined operations: CRM systems reduce manual process workloads and minimize errors by automating tasks, effectively streamlining operations.

• Informed decision-making: Access to real-time data and analytics in CRM systems empowers businesses to make data-driven decisions, optimize strategies, and adapt to changing market conditions.

• Competitive advantage: A well-implemented CRM system gives businesses a competitive edge. They help businesses deliver exceptional customer experiences, foster customer loyalty, stay ahead of market trends, and outperform competitors.

The different types of CRM systems

Over the years, CRM has evolved to meet the individual needs of businesses across various industries. The three primary types of CRM systems are desktop systems, client/server systems, and cloud-based systems. Which system a business chooses depends on its needs, budget, and infrastructure.

Desktop systems

Desktop CRM systems are typically run on individual computers or local servers within an organization. They offer offline functionality, making them ideal for businesses with limited or unreliable internet access. It is important to note, however, that these systems often lack real-time collaboration features and may require manual updates.

Client/server systems

Client/server CRM systems have a client-side application that interacts with a central server. This setup allows for better data management, scalability, and real-time data sharing among users. While more advanced than desktop systems, they may require higher infrastructure and maintenance costs.

Cloud-based systems

Cloud-based CRM systems have gained popularity due to their accessibility, scalability, and cost-effectiveness. They are hosted on remote servers, accessible via the internet, and require no local installation or maintenance. Cloud-based systems offer real-time collaboration, automatic updates, and lower upfront costs. Organizations must, however, take steps to ensure data security and consider potential internet connectivity issues.

The advancement of CRM systems

In recent years, CRM systems have undergone significant evolution to meet the changing needs of businesses in an increasingly digital and interconnected world. This evolution includes three prominent trends: the integration of mobile capabilities to support remote work, seamless integration with social media platforms, and the incorporation of Artificial Intelligence (AI) for enhanced data analysis and customer insights.

Mobile capabilities for remote work

The rise of remote work and the need for flexible access to data have driven CRM systems to adapt by adding mobile capabilities. Modern CRM platforms offer mobile applications that enable sales and customer service teams to access vital customer information, update records, and manage tasks regardless of their location. As the workplace continues to change, mobile CRM applications have become an essential component of facilitating collaboration and communication.

Social media integration

The influence of social media on customer engagement and marketing strategies cannot be overstated. CRM systems have adapted to seamlessly integrate with social media platforms, allowing businesses to monitor and engage with customers across various channels. Social CRM enables organizations to track customer sentiment, gather valuable insights, and target specific customer segments through personalized social media interactions. This integration helps businesses proactively address customer concerns, build brand loyalty, and stay attuned to market trends.

AI-powered Insights and automation

Artificial Intelligence is a game-changer in the CRM landscape. AI algorithms are being integrated into CRM systems to analyze vast volumes of customer data and deliver actionable insights. AI-driven analytics help businesses identify trends, forecast customer behaviors, and recommend tailored marketing strategies. Chatbots and virtual assistants powered by AI enhance customer support by providing real-time assistance and handling routine inquiries. Moreover, AI-driven automation streamlines processes, such as lead scoring and email personalization, improving efficiency. As AI continues to advance, CRM systems are evolving to harness its capabilities for better decision-making and customer relationship management.

These trends reflect the changing landscape of business operations and customer expectations, highlighting the need for CRM solutions that are agile, adaptable, and capable of providing deeper insights into customer behavior and preferences. As technology continues to advance, CRM will likely continue to play a pivotal role in shaping the way businesses engage with their customers.

The top CRM systems

Although there are many CRM systems available to choose from, the top 7 currently on the market are:

Freshsales

Freshsales is an AI-powered CRM offered by Freshworks. We have multiple packages available starting as low as $9/user/month to provide you with a solution that fits your needs. Freshsales makes selling easier by improving customer interactions and driving contextual sales. Use Freddy AI to boost revenue, grow your sales pipeline, analyze data, proactively address concerns, and increase productivity efficiently and conveniently.

Salesforce

Salesforce is a cloud-based CRM that allows businesses of all sizes to connect with customers and sales leads with ease. It centralizes important data and offers a large suite of products that offer sales, service, marketing, commerce, and IT functionalities. Salesforce enhances cross-team collaboration and communication, allowing businesses to provide customers with exceptional experiences.

Microsoft Dynamics 365

Microsoft Dynamics 365 is an AI-powered CRM that helps businesses increase sales, personalize experiences, automate finances and accounting, boost supply chain agility, and prepare your business for future growth. MS Dynamics can be used to centralize data and lighten workloads while remaining adaptable.

Zoho CRM

Zoho CRM allows companies to create and maintain meaningful relationships with their customers using automation, analytics, and personalized experiences. It’s customizable and easy to use, allowing it to grow with your business.

Insightly

Insightly is a customizable, affordable CRM with sales, marketing, service, and integration capabilities. This system has gained popularity due to its ROI time being proven faster than two other leading competitors.

HubSpot

HubSpot CRM is allows companies to manage sales pipelines and activities efficiently. Its aggregation of data into dashboards, integration capabilities, and communication functionalities make it both simple and powerful.

Copper

Copper is a CRM platform designed to seamlessly integrate with Google Workspace. This integration simplifies contact and file management using Google Drive, Calendar, and Gmail. Copper is ideal for businesses that live in Google Workspace looking for a solid, user-friendly CRM.

What types of businesses need CRM systems?

Because CRM systems offer a diverse array of features and functionalities, they have been proven to be beneficial in every industry. Regardless of who you are or what you do, CRMs can help structure your business processes, organize your data, and automate repetitive tasks to improve your overall operational efficiency.

When choosing a system, make sure to select a CRM that aligns with your industry. Freshsales, for example, works best for:

• Real Estate

• Hospitality

• Insurance

• SaaS

• Agencies

• Retail

• Ecommerce

• Manufacturing

• Logistics

• Finance

• Ed-tech

How to choose a CRM system

Choosing the right CRM is a crucial decision for businesses in various industries such as Real Estate, Hospitality, Insurance, SaaS, and Agencies. Below is a guide outlining how to effectively choose the best CRM for agencies and other companies:

1. Define your goals: Begin by clearly identifying the reasons why you are looking to implement a CRM. ex. engage with customers, track deals etc.

2. Consider your budget: Analyze your budget constraints, including both startup costs and ongoing expenses like subscription fees, maintenance, and training.

3. Functionality and integration: Make a list of the features your business will require of your CRM such as integration, reporting, and automation to ensure the CRM you choose will meet your basic needs and will work well with existing software.

4. AI capabilities: Look for a CRM with AI capabilities to streamline customer interactions, optimize sales processes, and access predictive analytics that will help you make data-driven decisions.

5. Scalability: Choose a system that can grow with your business so you won’t need to worry about changing systems during times of expansion.

6. Security and compliance: Ensure your chosen CRM meets security and compliance regulations to protect sensitive customer information.

7. Vendor reputation: Research your CRM provider thoroughly using reviews and customer testimonials to gauge reliability.

8. Testing and feedback: Request demos and trials to evaluate functionality and user experience. Gather input from key stakeholders within your organization to make an informed choice.

By following these steps, you can select a CRM system that best aligns with your business needs, enhancing customer relationships and supporting overall growth and success.

How much does a CRM system cost?

One reason it is so important to choose a CRM that fits your business is that the cost of CRM systems can vary widely depending on several factors, including the type of CRM, the size of your organization, the features and capabilities you require, and the chosen deployment method. Here's a breakdown of the key cost considerations associated with CRM systems:

1 CRM types and pricing models:

• Cloud-based CRM: These are subscription-based systems hosted on the vendor's servers. Pricing typically depends on the number of users and the features included in the chosen plan.

• On-premises CRM: On-premises CRM solutions involve purchasing a software license upfront, along with ongoing maintenance and support fees. Costs can be substantial upfront but may be lower over the long term if you have a large user base and need extensive customization.

• Open source CRM: Some CRM systems are open-source and free to use, but you may incur costs for customization, integration, and ongoing support.

2 User licenses: The number of user licenses you need directly affects the cost of your CRM system. Be prepared to pay a per-user fee for each person who will access the CRM. Consider both current and future users when calculating this cost.

3 Features and add-ons: CRM systems often offer a range of features, and the cost can vary based on the functionality you require. Advanced features like automation, analytics, and integrations may come at an additional cost.

4 Implementation and customization: Implementing and customizing a CRM system can be a significant expense. You may need to hire consultants or developers to tailor the CRM to your specific needs. Implementation costs can include data migration, training, and system integration expenses.

5 Support and maintenance: Remember that CRMs are an investment. Cloud-based CRM systems typically include support and updates in their subscription fees. However, with on-premises or custom solutions, you may need to budget for ongoing support and maintenance to ensure the system remains secure and up to date.

6 Scalability and growth: As your business grows, your CRM costs may increase as you add more users or require additional features. Factor in the scalability of the CRM system to accommodate your future needs and budget accordingly.

At Freshsales, we price our CRM based on which package a business chooses and how many people will be using it. Businesses can choose to pay monthly or annually based on their personal preferences and have the option to include additional add-ons. We also offer a 21-day trial so you can be sure Freshsales is the right fit for you before investing.

Why choose Freshsales?

Freshsales stands out from the competition because of its AI assistant’s robust capabilities. With Freddy AI, companies can run smarter sales campaigns, prospect superior leads, and build a stronger pipeline. Freddy helps streamline processes using automation, generating data reports, and doling out data-driven recommendations.

Top 5 takeaways about CRM systems

Because all of this information may come across as overwhelming, we’ve put together 5 key takeaways about CRM systems for you to keep in mind.

1. Why opt for a CRM system? Implementing a CRM system can enhance operational efficiency, foster stronger customer relationships, and elevate Customer Lifetime Value (CLV).

2. What role does a CRM system play? A CRM system serves as a repository for vital customer and prospect information, empowering businesses to effectively manage and nurture their critical relationships.

3. What are some essential CRM system features? Key CRM system functionalities include contact and lead management, sales forecasting, and analytics presented through user-friendly dashboards.

4. Where does the CRM evaluation journey start? When assessing CRM systems, businesses should begin by determining their specific wants and needs. Clearly identifying these will narrow down their options and help them find a CRM solution that suits them. 

5. How can CRM systems adapt to a dynamic business environment? CRM systems are customizable and scalable, allowing them to grow and adapt alongside your business. As technology evolves, so will CRM systems.