Customer relationship management (CRM) software is a digital tool designed for businesses to efficiently organize, monitor, and maintain data about their existing and prospective customers. The best CRM software centralizes data from various lead generation, traffic, campaign, and acquisition sources and creates records and profiles.
Core Capabilities of CRM Software
To qualify for inclusion in the CRM category, a product must:
- Provide a bounded set of sales-related functions
- Provide lead, contact, account, and opportunity management functions
- Capture and store sales activities and interactions performed
- Consolidate customer history and transactions into a single interface
- Track prospects and contacts throughout the sales pipeline
- Facilitate communication at all phases of the customer lifecycle
- Provide reporting features to track sales performance
- Provide workflow automation capabilities to streamline sales processes
- Integrate functions into a unifying database and platform
Common use cases for CRM Software
The software has a repository of a complete customer database, which stakeholders use to manage long-term customer contracts and relationships. CRM software enhances customer experience by streamlining customer support, email marketing, sales outreach, and sales cycles. The software also has help desk escalation, email automation, sales dispositions, automation workflows, and lead scoring and calling histories to help sales teams navigate to the current lead progress and establish contextual communication.
How CRM Software Differs from Other Tools
CRM software can be integrated with call center infrastructure platforms, digital marketing services, ERP systems, e-commerce platforms, marketing automation software, and CPQ software to reduce the risk of data silos and give real-time updates on the customer journey. Customer journey and funnel are categorized into different sub-processes in the CRM software where sales and marketing can access the data, build communication, and drive them forward to final deals.
There are many different types of CRM software that provide a collection of integrated customer-related functions or all-in-one functionality, such as marketing automation, help desk, e-commerce tools, ERP, project or website management, to replace the need for additional solutions and better serve small and mid-market businesses. Standalone CRM solutions, however, focus primarily on sales-related functions such as contact, account, and pipeline management and do not offer extensive marketing help.
Related categories include sales engagement.
Insights from G2 on CRM Software
Based on category trends on G2, a single view of customer history and pipeline tracking stand out as primary benefits. Workflow automation and integrations with marketing, support, and ERP tools help reduce data silos across teams.
