Customer relationship management (CRM) is a collection of principles, practices, guidelines, and tools that organisations use when interacting with their current and potential customers. The main objective of CRM is to increase good customer experience and through that the organisation’s profit.
To make customer relationship management easier, there are many CRM tools available on the market. These tools are divided into three groups based on the functions they are primarily focused on: analytical, operational, and collaborative tools.
Analytical CRM tools are used for analysing vast amounts of data from different sources to pinpoint the best strategies for campaigns and marketing. These are useful in understanding trends in the market and customer needs and expectations. Analytical CRM tools are great for organisations that operate in a highly competitive market.
Operational CRM tools are used to streamline business operations. They connect sales, marketing, and customer support. This helps employees in these departments do their work more efficiently and smoothly. The main objective of using operational CRM tools is to drive potential customers and then sales.
Collaborative CRM tools are used to share customers’ data between different organisations. These tools are useful to organisations that operate in a market where success is determined by innovation and new product development. By gathering large amounts of customer data and sharing it, organisations can create a detailed profile of potential customers and their needs.