Many people are still confused between Contact Management system and Customer Relationship Management software. Both are similar in concept but they have some distinguishable characteristics.
What is the Contact Management System?
In business, Contact management system is used to store and manage the data of the clients. So whenever it required, the employee can easily retrieve it. It is the process of managing the customer data and in some cases, it is the part of the CRM software.
What is a Customer Relationship Management System?
CRM is the vast concept. Basically, it is used to manage and improve the customer relationship. Contact Management system is the built-in functionality of the CRM. And other functionality included are inventory management, social CRM management, customer support system, complaint management system and many more. CRM allows you to automate the manual and repetitive task.
Benefits of Having Contact Management System and CRM in Business
- Data Management
In legacy businesses, most of the customer data are stored and managed in spreadsheets. But in human can make mistakes while entering the data. And when anyone wants the data of specific customer you have to send them whole spreadsheet or you have to find the specific information he wants. But when you have CRM, all data of the customer is stored in one central system and anyone can access it in business. And CRM reduces human mistakes because customer data are automatically added to the CRM system. If you are using all in one CRM system then marketing, sales, campaign, and customer support data are stored in one place.
- Increase Productivity
CRM automates many business processes, which increases the productivity of business employees. Data entry and appointment scheduling can be automated. When you automate these tasks then your employees get free time to do other tasks.
- Deeper Customer Insight
Collecting more and more information about your customer and getting into those data, you will understand more about your customer. You can learn about the behavior, needs, challenges, and interest of the customer.
Read More: 3 Misbeliefs Held by Entrepreneurs about CRM
- Customer Satisfaction
Because of all customer information is stored in one place and anyone can see it in the business, you can cater to each customer’s unique requirement easily. Customer satisfaction is the key to any business’s growth. It is difficult to give customer satisfaction without giving more attention to using CRM.
- Reduce Expense
Due to automating so many tasks in business, you need fewer man-hours. So you have to pay less to employees. All in One CRM lets you automate the marketing, sales, and customer relationship department, so you do not require a separate system for each department. So having one system reduced the cost of investing in separate systems.
- Personalize Customer Interaction
Through the data of customer and conversation history, you can prepare yourself before a call and you can give them more personalized interaction. This will increase engagement levels. If your customer has any issue regarding your service or product, you can solve it easily.
- Collaboration of Teams
Everyone in the company has all the information of every customer and prospect interaction, all their personal data, etc. Because all departments are working with the same data from the same database, each department can see how another department is dealing with the customer.
In CRM, customer support data is attached to each person’s contact record in your database including all past support tickets each customer has submitted. So salesperson can get insight into which problems each customer has experienced, which aligns the two teams’ efforts.
- Customer Experience
CRM software helps you to deliver a great customer experience. Personalizing customer interactions improve the customer experience. Having all the customer data at the fingertips, helps you to build a strong customer relationship. Dedicated help desk to solve the issues of customer fast also increases customer experience.
- Decision Making
CRM reporting, metrics, and analytics, you can figure out which department is working well. So you can help that department to improve. You can make data-driven decisions on the bases of revenue, sales, campaign and marketing data. With the help of a customized dashboard and graph integration analyzing these data to make the decision is amazing.
- Long Lasting Customer Relationship
With tracking the customer’s actions like clicking emails, visiting the website, downloading content, you can analyze the customer’s behavior. You can also see what issues did this customer had faced in past, so you can interact with him in a more personal way. So it will improve customer relationship and loyalty.
CRM system helps in improving productivity, customer relationships, teamwork, reducing cost and growth increasing. Kanhasoft is the best CRM software development company in India and USA. We can develop the CRM solution which meets your custom business requirements and help your business to boost up sales. Visit our site to see our clientele and portfolio.
Q: What is Contact Management?
A: Contact Management is a process of managing the contact information of customers, clients, and prospects in a centralized location for easy access and tracking.
Q: What is CRM?
A: CRM stands for Customer Relationship Management. It is a strategy and software tool that businesses use to manage customer interactions and relationships throughout the customer lifecycle.
Q: What is the difference between Contact Management and CRM?
A: Contact Management is a subset of CRM. While Contact Management focuses primarily on managing contact information, CRM includes additional functionalities such as sales management, marketing automation, and customer service management.
Q: What are the benefits of integrating Contact Management and CRM?
A: Integrating Contact Management and CRM can provide businesses with several benefits, such as:
- Improved data accuracy and consistency
- Increased efficiency and productivity
- Enhanced customer insights and personalized communication
- Better collaboration and coordination among teams
- Streamlined sales and marketing processes
- Improved customer service and satisfaction
Q: How does integrating Contact Management and CRM work?
A: Integrating Contact Management and CRM involves connecting the contact database with the CRM system, which allows for seamless data exchange and synchronization. This can be done through various methods such as API integration or using third-party integration tools.
Q: What are some popular Contact Management and CRM tools?
A: Some popular Contact Management and CRM tools include:
- Zoho CRM
- Microsoft Dynamics 365
- Agile CRM
Q: How can businesses determine if integrating Contact Management and CRM is right for them?
A: Businesses can determine if integrating Contact Management and CRM is right for them by evaluating their business goals, customer needs, and existing systems. They can also consult with CRM experts or software vendors to assess their options and determine the best approach.