What is CRM?

Customer relationship management (CRM) is software for organizing, maintaining, and retrieving relevant customer information in real time. CRM gives marketers and sales professionals an up-to-date, holistic view of each individual customer. But CRM focuses primarily on generating sales, sometimes neglecting the more-service oriented responsibilities businesses have to their customers. Businesses that rely exclusively on CRM may find themselves losing out on essential customer-service opportunities.

Here, we explore CRM—what it is, what it can do, and most importantly, how your organization can go further to deliver a truly exceptional customer experience.

Organizations who are interested in CRM generally have three deployment options: cloud-based, on-premises, or hybrid. And while cloud CRM is undeniably the most popular choice for businesses worldwide, on-premises and hybrid solutions offer their own, unique benefits.

Cloud CRM
Today, many software-as-a-service (SaaS) technologies operate exclusively in the cloud. This means that rather than storing programs and relevant data on on-site hardware (such as a server in a company’s data center), the software and information exists on off-site, third-party servers. Organizations use cloud services to access their data by way of the internet.

Cloud CRM allows businesses to manage customer-related sales and marketing efforts without the added costs and ongoing maintenance of on-premises deployment. Additionally, users can access cloud-based CRM and essential data from anywhere in the world, provided only that they have secure internet access. Finally, off-site solutions outside of the geographic region remain unaffected in case of local disasters or office emergencies, such as fire, floods, earthquakes, etc.

On-Premises CRM
While the cloud provides many clear advantages in terms of CRM deployment, some organizations prefer an on-premises approach. As the name suggests, on-premises CRM maintains all related programs and data on site in company computers and servers. The business deploys and maintains the CRM.

Some would argue that on-premises CRM entails greater cost and effort on the part of the company. However, for organizations with the right resources and IT experience, on-premises solutions may allow for greater control over sensitive data.

Hybrid CRM
Hybrid CRM offers a mix of cloud-based and on-premises CRM, allowing organizations to switch between the two options. They can maintain most data and programs in the cloud, while keeping critical information on site. For businesses with strict regulatory requirements for data handling and storage, hybrid cloud may allow them to enjoy the online infrastructure of cloud CRM while still ensuring regulatory compliance.  

When choosing a third-party CRM, organizations have the option to choose between open-source and proprietary CRM options.

Open-Source CRM
Open-source CRM gives organizations increased flexibility and adaptability, by making the CRM source code available to users. Open source CRM generally costs less than proprietary options, and allows businesses to operate free from commitments or restrictions imposed by CRM vendors. On the other hand, open-source CRM offers little-to-no official support, and usually only offers the most basic out-of-the-box functionality.

Proprietary CRM
Proprietary CRM usually costs more than open-source options, and users cannot modify or debug proprietary CRM without vendor assistance. Likewise, vendor lock-in makes it difficult and expensive to switch from a specific proprietary product to something else. Conversely, proprietary CRM usually provides improved security, and out-of-the-box functionality is normally more comprehensive than open-source CRM options.

At the most basic level, CSM fills the gaps in CRM, and makes customer relationship management an actual customer-focused solution. Here are four key advantages of integrating CSM with your existing CRM product:

Although aligned with traditional CRM, CSM emphasizes the word service. And given that 86% of consumers are willing to pay more for better service, this customer-centric approach puts organizations on the fast track to achieving business revenue goals.

Happy customers lead to growth, and happy employees mean reduced costs and improved productivity. CSM helps improve experiences both inside your organization and out; employees enjoy automated workflows and improved interdepartmental coordination, and customers receive a more personalized, cohesive support experience that delivers faster resolutions.

When employees don’t have to devote their time and energy to routine tasks, they are free to innovate. CSM handles the details, while allowing businesses to keep their creative and strategic juices flowing.

A key factor of CSM is its agility. As conditions in your industry change, CSM helps you and your business adapt along with them. CSM can help future-proof your business.