What is a CRM system?

CRM

CRM stands for Customer Relationship Management. CRM is both a system and a business strategy to help increase companies’ revenue, profitability, boost customer loyalty, and reduce costs.

Matthijn Hoogenboom

By Matthijn Hoogenboom, Sales Director, MicroPartner

What can a CRM system do?

A CRM system gathers all information about the customer, which can be accessed by all departments in real time. This means that e.g., Sales, Marketing and Customer Service always have all information at hand and as a result, can tailor sales, communication, and service to the individual customer.

  • Example 1

    If a customer turns to customer service, the customer service employee can quickly get an overview of relevant information about the customer. It could, for example, be which product the customer has bought, who the seller is, which correspondences and meetings there have been, and much more. This information helps the customer service employee to solve the customer’s problem quickly.

  • Example 2

    Marketing can create a list of the customers who have bought product A and who, as a result, may be interested in product B. This allows Marketing to target campaigns and communication to the customer.

CRM creates an overview

A CRM system gives you an overview of your sales and your customer’s interaction with your employees. You can e.g. see which customers:

  • Has the highest purchase rate
  • Has the lowest purchase rate
  • Addresses customer service
  • Responds to marketing campaigns

The more information you have about your customers, the better your chances are of understanding them. Consequently, CRM can help prioritize the sales and marketing activities to the customers who are most receptive to new purchases. This way, you can also avoid focusing resources on customers who are not receptive to new purchases.

A system and a strategy

As mentioned earlier, CRM is both a system and a business strategy. This means first and foremost, that the CRM system must be an anchored part of the company’s strategy. The CRM system must be used by all employees as the primary work tool. Subsequently, no employees may be allowed to continue working in old systems, excel sheets, etc. If the CRM system does not always contain updated and correct information, it will not provide value for either the company or its customers. Just think of the above example about the customer service employee. If the information about the purchase of product etc. is not correct or up to date, the customer service representative will not be able to help the customer. This will, in all probability, mean that the customer becomes dissatisfied and terminates the relationship.

Put the customer at the center with a CRM system

If companies want to get the most out of the CRM system, they need to put the customer first. This means, that they must review all the touch points they have with the customer and design their processes, so that they provide value for the customer. Bad customer experiences lead to loss of customers, while positive customer experiences ensure retention and loyalty. Therefore, it is alpha omega that companies map the customer journey and develop customer processes that can support the different parts of the journey.

Read more about customer processes.

CRM for process management

The CRM system is thus used to handle companies’:

  • Customers (leads, contacts, and companies)
  • Sales processes
  • Offers/quotes
  • Orders
  • Activities (e.g., meetings, assignments, e-mails)
  • Marketing
  • Customer service

But the CRM concept has evolved so that it also can support corporate:

  • Projects
  • Field Service
  • Connected Field Service (IoT)
  • Human Relations

Customer insight

In fact, a CRM system can now also contribute with Artificial Intelligence and Machine Learning, which can partly make working more efficient, but also contribute with new knowledge, e.g., about customers and / or products, and thus contribute to new potential earning.

CRM with Dynamics 365

At MicroPartner, we focus on Microsoft Dynamics 365, which is a cloud-based platform with a range of intelligent applications for managing business processes within Sales, Customer Service, Field Service, Project Operations, Marketing, Business Central (ERP) and HR.

The applications work together and on their own. Subsequently, you can choose to start with one application and expand as the need arises and your organization can keep up.

All applications work seamlessly together based on Dynamics’ Common Data Model (CDS).

Integrate with other systems

You easily integrate Dynamics 365 with Office 365 and third-party products such as Bisnode, ClickDimensions, ERP systems, and much more.

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‘If you want to work with CRM, you must work with the entire company’s value proposition to customers and thus work with your business model from a value model mindset, rather than an operating model mindset.’

Søren B. Sørensen, partner, Devoteam

Read the blog here.

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Customer insight

In fact, a CRM system can now also contribute with Artificial Intelligence and Machine Learning, which can partly make working more efficient, but also contribute with new knowledge, e.g., about customers and / or products, and thus contribute to new potential earning.

CRM with Dynamics 365

At MicroPartner, we focus on Microsoft Dynamics 365, which is a cloud-based platform with a range of intelligent applications for managing business processes within Sales, Customer Service, Field Service, Project Operations, Marketing, Business Central (ERP) and HR.

The applications work together and on their own. Subsequently, you can choose to start with one application and expand as the need arises and your organization can keep up.

All applications work seamlessly together based on Dynamics’ Common Data Model (CDS).

Integrate with other systems

You easily integrate Dynamics 365 with Office 365 and third-party products such as Bisnode, ClickDimensions, ERP systems, and much more.

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