CRM / Database

4 components of CRM

Managing customer data is complex: collecting data is one thing – using and analyzing it in the right way is another. Thanks to digitalization, users can see how far along the consumer is in the purchasing process. But how can this information be used so that not only the company benefits, but the consumer is also offered added value? The right CRM strategy is the answer.

Customer relationship management can be split into four different components whose basic concepts all aim to strengthen the customer bond.

#1 Operational CRM

The operational component of CRM focuses on acquiring data and subsequently analyzing it. The acquired information comes from sources such as customer service, sales, and marketing. Operational CRM tools automate processes such as quotations, orders, or returns and offer the option to call up all the data relating to a specific contact and create a trend analysis across all contacts. Operational CRM works closely with the analytical component, which in turn checks the transmitted data in order to then deliver input for the subsequent process, for example the preparation of a new quotation.

#2 Analytical CRM

The analytical component of CRM draws applicable conclusions by obtaining relevant information and insights from the collected customer data (such as purchase type and value-creation potential). With the aid of business intelligence features, these conclusions can be used as a basis to identify target groups, optimize quotation management, or determine the alignment of a company’s own products. A detailed and strategic data analysis is one of the most important processes for a company to gain information and insights and generate added value.

#3 Communicative CRM

This CRM component deals with the communication between a company and (potential) customers. Such communication includes contact over the phone, by email, or even on social media. Multi-channel management synchronizes and harmonizes the communication channels. All possible communication options are pooled together here, and a decision is made regarding which communication path is the most suitable for the individual customer.

#4 Collaborative CRM

This aspect of CRM not only covers collaboration within a company, but also between internal and external stakeholders. Here, processes are coordinated between the different departments, which can include customers, suppliers, and partners as well. Not only does the effective coordination of workflows save time and money, but pooling the information offers customers added value over the long term.

CRM trends

With digitalization gaining ground and being continuously optimized, CRM systems are also being constantly expanded and adapted to keep up with the latest trends. The current focus is on the following additional components when it comes to CRM tools:

Social CRM

Both companies and customers are active on social media platforms nowadays. Providing customer service and interactive options on your company profile boosts customer retention and new customer acquisition. Product surveys, chat support, and information on exciting new offers are just some of the possibilities in this context. The social component of CRM additionally incorporates data from social media channels, such as Facebook, LinkedIn, and Twitter. If your company or brand is mentioned on these, the respective context (praise or criticism?) is considered and analyzed. As a result, the preferences and needs of users, and consequently also of the target group, can be identified and appropriate action taken.

XRM

Extended relationship management (XRM), also referred to as “anything relationship management”, maps interactions that don’t just involve customers, suppliers, or partners, but also other stakeholders connected to a company. These may be investors, media representatives, or influencers, for example. This approach provides an even more accurate overall picture of the entire range of internal and external communication.

Mobile CRM

Mobile devices are being used more and more, and “mobile only” is a frequently recurring topic. Mobile CRM is the adaptation of all operational, communicative, and analytical components to mobile use. Easy and convenient operation as well as features that are particularly needed when on the go are advantageous here. For example, mobile access to all the key data in the CRM system must be ensured when field staff in customer meetings or colleagues working from home want to retrieve important information.

CRM – essential for the customer bond

The use of modern CRM systems is essential for winning over customers efficiently and on a long-lasting basis. Continuous data analysis not only helps to identify the needs of the target group, but also to optimize internal and external processes.