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What is a CRM, Customer Relationship Management Software Explained

Michael Morgan
Chief Revenue Officier
May 13, 2024
May 10, 2024

The more you know about your customers, the easier it is to sell to them. Meanwhile, customers quickly get frustrated if they have to repeat the same information over and over or wade through offers that don’t apply to them. A customer relationships management (CRM)  system organizes all of your customer information so you can offer a personalized experience and, hopefully, make the sale.

What is a CRM?

A CRM is a piece of technology designed to centralize customer information. It’s generally stored on the cloud, where sales, customer service, and support teams can all access the data.

Businesses of all sizes use CRMs as a way to manage external relationships. The most robust CRM systems connect with marketing, sales, and digital commerce tools to gather and share information. Simpler versions may be no more than a specialized database. 

Consolidating all customer information in one location means that the information is always available to anyone within your organization who needs it. For example, when a new customer calls with questions about the product they just bought, the support associate can see that purchase in the system and provide information about how to use that specific product model.

What Does a CRM System Do? 

The main function of a CRM is to collect and organize data. Of course, you could do this with a spreadsheet, but that takes time and focus. Keeping a spreadsheet updated requires each member of your team to meticulously enter information in the right place. Such manual systems quickly become unwieldy. They also may miss important details, like what customers are saying on social media or the fact that one customer opened your latest emailed offer three times but still hasn’t made the purchase.

A CRM automates the data gathering and organization process. It might log calls from a particular number, track purchases, and store personal details about each customer. 

Many CRM systems provide reports that give you a big-picture view of where customers are coming from and what they’re buying. They may include built-in lead scoring, allowing you to see which leads are hot and which ones might still need some convincing.

Benefits of a CRM system

Customer data can come from so many sources: in-person interactions, websites, email, social media, telephone calls, text and chat and more. Modern businesses use CRM tools to organize all of that data and gain some valuable benefits along the way.

  1. Free your customer information from the silo - When information is centralized, everyone can learn from every interaction. Details gathered by the sales team can inform marketing and support teams can easily see a customer’s entire purchase history.

  2. Target Marketing - Using CRM information the marketing team can create personalized offers and engage customers directly in what interests them most. CRM data can be used to build email lists, target ads, or formulate SMS messages.

  3. Increase each customer’s lifetime value - Having all of this information about each customer lets you tailor communications and deliver better service. They’re more likely to become loyal customers who buy from you again and again.

  4. Enhance customer support - Customers get frustrated when they have to answer the same questions over and over or explain themselves to multiple people. A CRM allows for seamless handoff between employees and departments.

CRMs work best when they’re connected to many other tools and software applications that collect information and aid customer interaction. A well-connected CRM can automate much of the customer relationship.

How to Handle Anonymous Visitors 

CRMs work best when prospective or existing customers have already given you their contact details. But not all website visitors are willing to fill out a form right away. Many remain anonymous, leaving your CRM without data to gather. 

A visitor to your website may click through from an ad, look around and leave. Later, they come back to your page from a different device. They didn’t sign in either time, so the CRM has no way of knowing who they are. 

This is where Ignite shines. From the moment a visitor lands on your website, Ignite by Launch Labs starts building a profile for them. With location data, browsing history, and other details, Ignite lets you present customized offers right away. The result is more engaged visitors who are more likely to convert. 

Start Building Relationships Right Away

Ignite builds a unique profile of every visitor through identity resolution, even if they get there using multiple devices and referring domains. Most CRMs aren’t built for the complex task of identity resolution.

Ignite lights a fire under your CRM by collecting and deanonymizing first-party data. This let’s you market to prospective customers who are not yet in your CRM. It’s a powerful tool for conversion. 

A CRM may help you organize and use customer data, but Ignite by Launch Labs lets you start collecting data so you can personalize messaging and offers sooner, before they even become customers. To see it in action, book your free demo today

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