Nexa Lab Blog – Customer relationship management (CRM) is a vital aspect of modern business operations. Learn more about what does Customer Relationship Management involve through our comprehensive guide.

We often find ourselves pondering exactly what CRM is and how it can benefit our organisations.

Well, basically, CRM can mean two things. First are the processes, systems, and strategies used by businesses to manage and analyse customer interactions and data throughout the customer lifecycle.

Second, CRM also refers to the technology that companies use to streamline and improve their customer relationships.

That’s why if we want to talk about CRM, it’s important to know the process and strategies first before we jump into a software solution to help you with that.

So, what does customer relationship management involve?

In this article, we’ll do a deep dive into CRM strategies and learn more about how to implement these strategies in the software.

Let’s get to it.

What Does CRM Process Involve?

At its core, CRM is about building and maintaining strong relationships with our customers.

It’s a strategy that encompasses various aspects of customer interaction, from initial contact to long-term loyalty.

According to the Focus on Force blog post, there are 5 steps involved in the customer relationship management process.

You need to generate brand awareness, acquire leads, convert leads to customers, provide customer service, and then drive upsells.

Let’s break down each CRM step involved:

1. Generating Brand Awareness

The first step in any customer relationship is making potential customers aware of our brand. Sometimes this is also known as the marketing job, with the goals of to make a noise in the market and attract attention from potential customers.

This step involves creating a strong brand presence through various marketing channels, such as social media, advertising, and content marketing. Some of the activities in these steps are.

• Creating targeted marketing campaigns
• Utilising social media platforms
• Engaging in content marketing
• Participating in industry events and trade shows

Generating brand awareness isn’t just about flashy campaigns.

It’s about consistently delivering value to our audience.

Things like sharing industry insights and tips on blogs can help your business as thought leaders in the field.

This not only increases brand awareness but also builds trust with potential customers.

More on Nexalab’s blog: What is the Goal of Customer Relationship Management?

2. Acquiring Leads

The goal of brand awareness is just to get market attention for your content. So, even though you got a million views on social media, that doesn’t mean the viewers know about the brand.

You need to acquire leads, which will let people know that you are a brand that is selling something.

In lead acquisition, you can use strategies like implementing lead capture forms on your website, offering exclusive content in exchange for contact information, or running targeted ads on various platforms.

Some of the most common strategies include offering a free e-book on industry trends, which has been particularly effective in capturing leads.

It provides value to potential customers while allowing us to collect their contact information for future follow-ups.

But lead acquisition isn’t just about quantity; it’s about quality too.

It’s important to focus on attracting leads that align with our ideal customer profile. This has led to higher conversion rates and more satisfied customers in the long run.

3. Converting Leads to Customers

Acquiring leads is only half the battle. The real challenge lies in converting these leads into paying customers.

But how do you convert all these leads into customers? Some of the common strategies are offering free trials or samples or providing personalised product demonstrations.

We’ve seen great success with a personalized email campaign that provides tailored product recommendations based on each lead’s expressed interests and needs.

But conversion isn’t just about pushing for a sale.

It’s about building relationships and demonstrating value.

We’ve found that hosting webinars that address common industry challenges has been an effective way to showcase our expertise and build trust with potential customers.

4. Providing Customer Service

After you’ve done the three steps above, now you’ve got a customer!

Once we’ve converted leads into customers, this is when the real CRM process happens. As the name implies, the CRM process is mainly a strategy to retain and build relationships with customers.

One of the important steps is providing an excellent experience to the customer, including the best customer service.

Providing great customer service can include activities like:

• Offering multiple channels for customer support (phone, email, chat)
• Implementing a ticketing system for efficient issue resolution
• Providing self-service options like FAQs and knowledge bases
• Regularly soliciting and acting on customer feedback

Aside from just resolving issues, it’s also important to proactively anticipate customer needs.

For example, you can implement a system where you reach out to customers after major product updates to make sure they’re getting the most out of new features.

This proactive approach can lead to increased customer engagement and loyalty.

5. Driving Upsells

The final component of CRM involves encouraging existing customers to purchase additional products or upgrades.

One of the goals of CRM is to increase customer loyalty and, ultimately, to drive upsells to them. But how do you do that elegantly, so your customer feels like they are being offered valuable solutions rather than pressured into buying more?

First things first, you need to analyse customer purchase history to identify upsell opportunities. Then, after that, you can decide what kind of upsells you can offer them.

You can offer bundled products or services. Or, provide loyalty rewards for repeat purchases. Or maybe you can simply educate customers about new products that complement their existing purchases.

But it’s important to note that aggressive upselling can be annoying.

The best upselling strategy is all about understanding customer needs and offering solutions that genuinely add value.

So you need to train your sales team to listen carefully to customer pain points and suggest products or upgrades that address these specific challenges.

How to Do That in CRM Software?

Now that we understand what CRM involves, how can CRM software help you with all that processes? What features make CRM software irreplaceable for a successful customer relationship strategy?

Let’s explore some of the important CRM software features that can help you execute CRM strategies efficiently.

• Centralised Customer Database: CRM software allows you to store all customer information in one place, making it easy to track interactions and preferences. For example, you can see a customer’s purchase history, support tickets, and email interactions all in one view.
• Automated Marketing Campaigns: You can set up automated email campaigns based on customer behaviour or demographics. You can set up a series of welcome emails for new customers, introducing them to the product features over time.
• Sales Pipeline Management: CRM tools help you visualise the sales pipeline, so you can track leads from initial contact to closing the deal. At a glance, you can see which deals are close to closing and which need more attention.
• Customer Service Ticketing: Many CRM systems include ticketing features to manage and track customer service issues efficiently. You can assign tickets to specific team members, set priority levels, and track resolution times.
• Analytics and Reporting: CRM software provides valuable insights into customer behaviour, sales trends, and service performance. You can regularly review these reports to identify areas for improvement and opportunities for growth.
• Integration with Other Tools: Modern CRM systems can integrate with other business tools, creating a seamless workflow across departments. For example, you can integrate our CRM with our email marketing platform and customer support software.

One of the most killer features of CRM software is integration. Since CRM software is a kind of specialized software solution, it’s almost impossible that it can solve every workflow in your company.

So, maybe you are handling tickets with professional service automation software. With integration, you can still use both CRM and PSA software to make sure your operation runs smoothly.

However, this process can be a little bit technical. You might need an integration expert like Nexalab. CRM software integration might need programming and coding knowledge to ensure seamless communication between different systems.

Hiring a professional integration expert can save you time and resources, allowing you to focus on growing your business and improving customer relationships.

More on Nexalab’s blog: What is a Good Customer Relationship? The Key to Business Success

Conclusion

Customer relationship management is a multifaceted approach that involves every stage of the customer journey, from initial brand awareness to long-term loyalty.

Remember, CRM is not just about software or processes; it’s about creating meaningful relationships with our customers.

And that, ultimately, is what customer relationship management is all about.

Investing in CRM software is a smart move for any business looking to improve sales, marketing, and customer service. But to get the most out of your CRM, it needs to work with your other tools.

Nexalab’s App Integration Services can help you connect your CRM with other essential platforms, like PSA software, for example. This means you get a complete view of your customer data, automate repetitive tasks, and personalise your customer interactions. It’s a solution that helps you get the most out of your CRM investment. Contact Nexalab today to explore how App Fusion can drive your business forward.