What is CRM software and what is it used for?

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There is a term that in recent times has aroused much curiosity in those responsible for marketing in different companies. However, it is still something unknown to most people and, if you have an ecommerce, it is important that you know it. We are referring to CRM.

Said in this way it can be confusing, but we assure you that it is not. What you should know is that by implementing it your different marketing strategies will benefit greatly. CMR works to increase customer loyalty through customer knowledge and thus increase our profitability. But what is it really and how does it work? Below we will answer all your questions.

What is CMR

CMR refers to Costumer Relationship Management. Many people think that CMR is a computer program or software that manages all the information about our customers, especially the activity we carry out with them.

However, if we get to the bottom of it, the CMR is much more than just a computer program, a set of information or a database. What we really mean by CMR is a strategy or a management model that is based on the information we have about the customers who interact with our business. In this way, we can carry out much more personalized actions that reach each client and point to their preferences.

The truth is that the CMR is not a new system, perhaps the software used to perform the actions is; however, the concept is not at all new. Knowing your customers has always been one of the most important strategies to generate trust and loyalty to your business.

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Types of CMR software

There are three categories of CMR software you can choose from to make your activities more productive: Operational CRM, Analytical CRM, and Collaborative CRM. They differ mainly in that some focus on customer management and others on internal business management.

Operational CMR

In this type of CMR we can find two components; the first one called “Front Office”, which takes care of everything related to marketing and sales management, as well as customer service. And “Black Office”, which handles the accounting and finance functions.

Analytical CMR

This type of CMR uses the Business Inteligence business model which is in charge of data collection in the different warehouses belonging to the company. In short, it is in charge of exploiting the information of the customers in order to offer them commercial solutions according to their needs.

Collaborative CMR

Its function is very simple, but at the same time crucial, since it is in charge of the interaction that the company maintains, by different means, with the clients. In this way, links can be generated when offering services and products depending on what each one requires.

Conclusion

Although all CRMs are for managing your customer relationships, not all CRMs are the same and serve exactly the same purpose. That’s why it’s important that you inform yourself thoroughly before choosing one. And if, after reading this article, you still have any questions, stop by for a comment!

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