What Is a CRM? And How Does It Help Businesses?

What is the purpose of customer relationship management (CRM)?

CRM stands for customer relationship management and refers to the combination of strategies and technologies businesses use to optimize customer engagement and make the best use of data. Overall, customer relationship management combines sales, marketing, and service under one system and/or strategy so that teams can align their efforts to meet their organization’s goals. A strong CRM strategy accounts for all stages of the customer journey, from the moment a potential customer becomes aware of your brand to after they make a purchase and become a loyal repeat customer.

CRM industry leaders predict that CRM trends will see a tighter focus on customer retention and personalizing their experiences, more CRM processes powered by AI, and the use of mobile apps to access CRM data. With these trends in mind, you may find that customer relationship management is a rewarding career field for you to explore.

Keep reading to discover how CRM systems work, which ones are the most common, and how to get started in CRM. 

Did you know? Global revenue from CRM systems will increase to $145.61 billion by 2029 [1]. 

What is a CRM system and what can it do? 

The main purpose behind a CRM system such as Salesforce or HubSpot is to use data and automation to achieve company revenue goals. Let’s explore some typical CRM system capabilities.

Customer experience 

Settings and features within CRM systems can improve customer experience in several ways, including automating replies to support requests, signaling when to follow up with cold and warm sales leads, and customizing messages to fit customers’ specific needs. When a business meets and exceeds customer expectations, customers are more likely to become loyal.

Sales

CRM systems allow sales teams to monitor the sales pipeline and categorize leads to prioritize their marketing efforts and drive sales. The sales pipeline helps businesses or marketing teams visually track potential buyers as they progress through the purchasing process.

Marketing

CRM systems can streamline audience targeting to help reach niche audiences during a marketing campaign or message customers at various stages in the buyer’s journey. That way, audiences get the content they need exactly when they need it so they can make empowered buying decisions. 

Read more: What Is a Niche Market? And How To Reach One

Service

CRM systems can help customer service representatives resolve cases faster, enable customers to find solutions on their own, and automate service processes. These capabilities can save your business time and expenses while contributing to customer satisfaction.

Commerce

CRM systems can create seamless ordering experiences, allow multiple payment methods and multiple channels, and expand your digital marketplace to third-party sellers.

Collaboration across teams

When data is widely accessible, teams have more opportunities for impactful collaborations and cross-functional work. 

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How to use a CRM system

Review your career goals and follow these steps to start your CRM journey:

1. Explore CRM marketing career paths.

Learning CRM can open up a variety of career opportunities. Roles you might come across in your research include:

A CRM consultant makes, on average, $100,439 in the US and guides organizations on how to improve their customer experience with recommendations for new strategies, systems, and training [2]. 

A CRM administrator makes, on average, $71,555 in the US and provides IT support so organizations get the most out of their CRM systems [3]. 

Other roles in which you might use a CRM include sales development representative, sales representative, and marketing manager.

2. Gain relevant experience. 

Experience in sales, marketing, or customer service roles can build skills that transfer to CRM roles and use CRM tools. Here are examples:

• Starting your own business, building a customer base, and offering an engaging customer experience 

• Working in a customer support or help desk role 

• Taking on a sales rep or sales development rep job

2. Take a CRM course.

One of the most direct ways to get to know CRM as a career field, set of strategies, and fleet of technologies is to take a course or get a certification. Look for courses that cover the conceptual, strategic, and tactical aspects of CRM, including:

• Articulating business goals

• Designing and delivering content that engages customers at every stage of the buyer’s journey

• Segmenting customers to personalize their experiences 

3. Research CRM tools.

Once you have some working knowledge of CRM and what it can enable for your career, it’s a good idea to learn how to use common CRM software tools. Explore a few options in the table below:

Choose a CRM tool that matches your career goals, whether you want to grow your business or seek employment in CRM. Consider the following factors: 

• How a CRM’s features correspond to your priority business processes

• Pricing options and free trial offers

• Learning curve 

• The time it will take to import data and set up automation

• The tools companies in your industry use most 

What do users think of CRM systems?

You may find it useful to find out what users think of CRM systems. G2.com is a helpful site for reading reviews of different software programs, including CRM, and seeing how they compare. For example, Salesforce, HubSpot, Zoho CRM, and Monday each score 4.1/5 or higher among users who submit their feedback to G2 [10].

3. Practice using CRM tools.

Once you’ve researched several CRM tools, select a few to practice using before making a long-term investment, especially if a free trial is available. Some of the tasks you’ll want to practice include: 

Importing data

Data might entail information about customers, sales, and marketing channel activity. You may be able to use actual data from your own business or simulate it with made-up information for learning purposes. 

Setting up automations

Automations help ensure important tasks get done without having to execute them manually. Practice automating email sequences to prospective and current customers and delivering freemium content to new subscribers. 

Monitoring results

Select a few metrics to measure for practice, such as email opens, social media mentions, and conversion rate, and set a date for checking in and deciding how to respond to the results. For example, if the email open rate is lower than you anticipated for a given time period, what improvements could you make to email subject lines to encourage more clicks from subscribers? 

Learn more about CRM marketing on Coursera

Online courses can be a great way to build CRM knowledge and skills as well as discover career opportunities. Check out these options from industry leaders Salesforce and HubSpot.