3 Different Types of CRM Software To Help You Achieve Your Business Goals

By Susanna Balashova November 26, 2020
3 Different Types of Software

This is the most complete guide to three different types of CRM software for your small business.

So if you want to choose the right system for small business, then you’ll love this post.


Let’s dive right in.

Businesses that understood that customers are the ones that can help them succeed, now also understand the importance of offering their customers a positive experience.

All interactions with your brand or business will shape the opinion of customers on it.

This will have a big influence on their connection with your brand, which will lead to recommending it or not to their friends. 

Businesses rely a lot on their customers, so they started looking for ways to understand the consumer’s behavior, what makes them buy, and what are the needs of their customers.

Thanks to all technological advancements that happened in the last years, marketers now have a wide variety of data they can use in their work. 

But with this open access to data about customers come a lot of challenges. You need to gather that data, analyze it, and identify a few main points that will guide your customer strategy.

Another challenge is that of multiple marketing channels, such as social media, emails, mobile, or offline.

Each of them comes with data and insights about your customers, and it becomes a real challenge for marketers and customer support specialists to integrate the main points in their work. 

So, the challenges of handling and managing customer relationships arise. And for businesses that emphasize their customers, CRM software is the right solution.

According to custom papers on e-commerce topics, the CRM software industry has grown tremendously over the last few years.

The more marketing channels are used by a business, the more data it gathers about its customers’ behavior. 

This data is important for marketing strategies, as well as customer retention ones.

However, three main types of CRM answer different business needs. There is no one-go-to solution that fits all business purposes and goals because they are different.

Your business is unique, so there should be a custom solution for you. However, some obstacles you might need to overcome and needs could be grouped into three main categories. 

In this post, you will find out more about CRM software, about what it is and how it can help small businesses thrive, and about the main types of CRM software and its benefits. 

What Is CRM Software?

CRM describes a beautiful combination of tools, apps, processes, and software that businesses use to improve their customers’ experience.

The relationship between a brand and its customers is important, and for making sure that every step along the process goes smoothly, businesses need strategies and software that can support this process. 

CRM refers to Customer Relationship Management and it describes the strategies a business makes to attract new customers, convert visitors into customers, and retain them.

To build these strategies, business needs tools, data, and information on some of the most important details about their customers’ behavior. 

Increasing profits is the ultimate goal an enterprise or business has, but to reach it, you need to invest a lot of resources along the process.

At the same time, you should aim for creating an optimal buying experience, and make sure that the interaction with customers is smooth.

So, you might wonder why CRM software is so important especially for small business owners. 

The Importance of CRM Software

The importance of CRM software can easily be noticed and understood if you look at what your business needs to do to attract more customers.

For example, you start a business.

And just like every business, you depend on the orders you receive for the products or services you offer.

To help your business thrive, you need to slowly increase the number of your customers and also keep close to the ones you already have. 

Most business owners think that social media, marketing, promotions, and ads are the right solution.

And indeed, they help increase your brand awareness and make your business known to the public.

But you need to convert those people who might find your brand interesting into customers and make their experience so nice that a special connection will be established between you. 

You need to keep your existing pool of customers loyal, attract new ones, maintain a smooth acquisition process, and be the brand that best answers their needs and to which they will return.

It may sound simple, but to do this successfully, you need a lot of data on: 

  • The demographics of your customers: gender, location, age, income, education, marital status, and other details that are important for your business.
  • Purchase History: what your customers have purchased from your brand, which are the products they have ordered multiple times, the average sum of money they paid for an order, and so on.
  • Behavior Patterns: if they switched between two similar products before buying one of them, the frequency of orders, the timing of the orders, and many other details that offer insight into the buying patterns of your customers.

So, things get a little more complicated. You would need employees responsible for collecting and analyzing data.

You would need marketing specialists to design the best promotions and ads and gain insights.

You would need a lot of time and resources to manually do all this, and considering that there is fierce competition between businesses, you might not have this much time. 

This is why using CRM software is important especially for small business owners who are looking to build a nice and long-lasting relationship between their brand and customers.

To do this, you need to understand what your customers need, why they make a specific purchase, which is their online buying behavior, and many other details about them. 

These details and data help you build the best strategy, reduce the overall costs, and improve the customer’s experience and interaction with your brand.

But, depending on your business’ goals, vision, and purpose, you can choose from three different types of CRM software.

Each of them answers to a different problem or need enterprises have, so you must carefully make a choice.

There are three different types of CRM software and each comes with its benefits. 

Types of CRM Software 

Understanding the main types of CRM software and the benefits they come with will help you choose the best option for your business.

Each of them comes with a specific spell or enhancement, so depending on what your business is trying to focus on, each of them can support that process. 

1. Operational CRM 

Operational CRM focuses on those daily operations or processes that contribute to a positive customer experience.

The field here is wide and it includes customer communication, marketing processes, and sales operations your employees are involved in.

The main goal of operational CRM is to ensure a good and smooth relationship between your brand and customers.

It helps you take care of all the processes involved in a customer’s journey and also saves time and reduces costs. 

To attract new customers and improve the relationship with the existing ones, your sales, marketing, and customer support teams put a lot of effort in.

Operational CRM automatizes some of these tasks, helping you keep the profile of each customer updated and have a database with customers’ profiles that can be accessed by your team.

At the same time, this will improve the processes within your business, making the overall one more efficient. 

So, which are the benefits features of operational CRM come with? 

  • Contact details management – one of the most important things your team needs to take care of, is having the contact details of your customers updated and managed accordingly. Each customer has a profile where every interaction with your brand is noted, and operational CRM software does this automatically.
  • Automatize Marketing – depending on customers’ interaction with your brand (which are noted in their customer profile), marketing specialists can build a custom loyalty program, ads, and promotions.
  • Automatize the Tasks of Sales Teams – the sales team can easily become overwhelmed by the number of tasks they have to handle, so operational CRM software can help you automatically assign tasks depending on the deal value or customer actions. 

2. Analytical CRM

Another important step in the growth of a business is customer retention.

Their retention depends on their satisfaction, and both depend on how you answer to their needs.

Not all people will be interested in using your services or ordering your products, but you surely have a target group.

You need to know a lot of details about your target group to answer their needs.

Some of this information is automatically gathered, analyzed, and provided by an analytical CRM software.

It does it automatically, so you can predict customers’ trends and see which of your products are the most appreciated. 

So, it is important and essential for small business owners to understand why customers buy or not their products, which are their needs, track sales, and improve your business processes.

Analytical CRM software might give you exactly what you need:

  • Cluster Analysis – all the demographics and data on customers’ behavior is analyzed on clusters and it can be accessed by your marketing and sales teams to build their strategy.
  • Build the Buyer Persona – the buyer persona is a fictional profile you create for one typology of customers. The more data an analytical CRM software will gather and analyze, the more detailed your buyer persona will be. And this will help you target the right people with the right message.
  • Forecast Sales Trends – by analyzing the past sales your business had, you can predict and prepare better for future ones (for example, seasonal sales). 

3. Collaborative CRM 

Collaborative CRM software focusing on the possibility of sharing data about your customers across teams.

This is also possible with the other two types of CRM software, but collaborative CRM includes both internal and external teams or stakeholders. 

So, if you think you need to improve the communication across teams and departments and improve customer retention and loyalty, then a collaborative CRM is what you need. 

  • Customer Relationship Management – one of the most important features is that collaborative CRM software allows multiple teams to work on the same customer profile. Like this, your sales, customer support, and marketing teams can update a specific profile of a customer as soon as they have more details. And this will improve the customer’s experience with your brand.
  • Files Management – there might be a lot of files and documents involved in internal processes, and they are easier to share and keep with collaborative CRM software.
  • Customer Interaction Management – each interaction of a customer with your brand is noted and it can be the base for future custom discounts and loyalty programs. 

Depending on your business goals, purpose, and vision, a different type of CRM software can help you improve customer satisfaction and experience with your brand.

CRM software helps your business thrive and grow while answering the needs of the customers.

What are your thoughts on this subject?

Leave a comment below.

The following two tabs change content below.

Susanna Balashova

Susanna Balashova is a creative magician in a world of (mostly) boring Marketing. She turns dreary work things to be interesting and effective, as well as likes creating her own world within some fanfic sketches. She coordinates the best essay writing service on technology topics. Reach out to her on Twitter or LinkedIn.

Speak Your Mind