How a CRM Works?

What is a CRM, how CRM works, and how to choose the best one for your business?

Choosing a CRM and knowing how CRM works is not just a technical decision, it is a strategic investment for the growth of any business, regardless of its size. However, false expectations and lack of knowledge can lead to costly mistakes.

A CRM is not just a tool, but an ally that helps manage customers, optimize sales, and improve the user experience. But what exactly is a CRM? How does CRM work? How to choose the right one for your business?

In this article, I will explain what CRM is and why it is crucial for marketing professionals and entrepreneurs. I will also provide a practical guide to selecting the best one for your needs. I will also share examples, key functions, and essential tips for effectively integrating it into your digital strategy.

What is a CRM?

CRM stands for Customer Relationship Management. It is software designed to help you manage interactions with current and potential customers. It is more than just a database; it centralizes contact information, tracks interactions, and automates processes to enhance customer relationships.

How CRM works: Objectives and Functions

A CRM’s primary objective is to improve customer management by optimizing communication and loyalty strategies. Key functions include:

• Data Centralization: Stores and organizes customer information in one place.
• Task Automation: Reduces manual work for follow-ups, emails, and reminders.
• Interaction Tracking: Logs calls, emails, and meetings for a better customer history.
• Sales Management: Optimizes the sales funnel from lead acquisition to deal closure.
• Analytics and Reports: Provides insights into marketing and sales strategies’ performance.

Most Common Uses of a CRM

CRMs are used in various industries and business areas. The most common applications include:

• Sales: Managing prospects, opportunities, and closing deals efficiently.
• Customer Support: Providing personalized assistance and quickly resolving issues.
• Marketing: Segmenting audiences, automating campaigns, and improving conversion rates.
• Project Management: Coordinating tasks and enhancing internal collaboration.
• E-commerce: Personalizing customer experiences and managing orders effectively.

How a CRM Can Help Your Business Grow

Here are three case studies demonstrating the power of CRM implementation:

Xolomon:
Xolomon, a clinical data collection platform, faced challenges such as inefficiency in video calls and poor customer experience. By implementing Platforce CRM, they improved process automation and interaction management.

Results: Increased engaged doctors from 14 to 784 per month and reduced customer acquisition costs from $250 to $15 due to improved communication and flexible remote calls.

Perfumerías Unidas:
This leading luxury retail company in Peru faced communication and segmentation challenges. With HubSpot CRM, they implemented an omnichannel strategy including email marketing and WhatsApp Business to better connect with customers.

Results: Surpassed their online sales target for Father’s Day by 17%, increased online sales by 81%, and achieved a 55.96% conversion rate in campaign forms.

Conekta:
Conekta, a Mexican digital payment solutions company, needed to optimize sales and marketing processes. They adopted Salesforce CRM, integrating tools like Marketing Cloud and Sales Cloud to centralize information and automate workflows.

Results: Enhanced customer experience through marketing automation, provided more efficient data access for sales teams, and improved organizational structure, facilitating rapid growth and expansion.

These examples highlight how CRM solutions can transform efficiency and customer experience, allowing businesses to improve interactions and streamline processes.

Comparison: Pros and Cons of Leading CRMs

This comparison is based on user feedback, with AI assistance in selecting key points.

Essential Features to Look for in a CRM

If you’re new to marketing, these are must-have features:

• Contact Management: Store key customer data like names, emails, purchase history, and interactions.
• Task Automation: Automate follow-ups, welcome emails, and reminders.
• Website Integration: Ensure your CRM captures contact forms from your website automatically.
• Social Media Tracking: A good CRM should track interactions and generate leads from platforms like Instagram, Facebook, or LinkedIn.
• Reports and Analytics: Provide clear insights on marketing and sales performance.
• User-Friendly Interface: Choose CRMs with easy-to-use dashboards, especially if you are new to web management.
• Customer Support: Opt for CRMs with strong support and comprehensive tutorials to help achieve your goals.

Who is Responsible for CRM Management in a Company?

The CRM Manager is responsible for overseeing CRM operations. This role is usually part of the Marketing or Sales department, as it focuses on communication strategies and business growth.

Key Responsibilities:

• Data analysis and KPI tracking.
• Cross-department collaboration.
• CRM implementation and maintenance.
• Customer loyalty strategies.
• Training and support.

A CRM Manager acts as a bridge between marketing, sales, and customer service to ensure a seamless customer experience.

Quick Start: Set Up a CRM in 1 Hour

A beginner’s guide to experimenting and making an informed CRM choice:

1. Choose a free or demo version: Try options like HubSpot or Zoho before committing.
2. Import your contacts: Clean up your database to avoid duplicates.
3. Create tags or categories: Separate contacts into “leads,” “current customers,” and “former customers.”
4. Automate basic tasks: Set up a welcome email or follow-up reminders.
5. Integrate with existing tools: Connect your CRM to your website and social media (e.g., integrate HubSpot with Facebook Ads).

Final Thoughts

A CRM is more than software; it’s a tool to build stronger customer relationships, streamline internal processes, and drive business growth. As a marketing beginner, you don’t need to know everything upfront. Choose a CRM that scales with you and start small. Success in marketing isn’t about how many tools you use but how effectively you use them to connect with your audience and achieve your goals.

Need help with CRM implementation? Carlos Apitz, through Link Team LLC, offers consulting services on CRM integration, form automation, landing page creation, email marketing, and more. Contact us or leave a comment for further inquiries!