Types of CRM Knowing how to choose between the existing types of CRM is one of the essential keys before contracting any of the different possibilities. Even within a specific type of CRM, many options exist. As a result, we can almost find an ideal kind of CRM for each company. Getting the CRM right will allow you complete control of all the company’s processes, from sales to marketing, through business management, accounting, or finance. Understanding that any CRM has its uses is essential; everyone can be a valuable company.
Types Of CRM
There are three main types of CRM, although we can also establish other classifications. The most common classification differentiates between operational, analytical, and collaborative CRMs.
Thanks to CRM Marketing, better relationship marketing is achieved, making converted leads become recurring customers.
Next, we explain the different types of existing CRM and their advantages and disadvantages.
1. Operational CRM
The Operational CRM is the most straightforward CRM, focused on the company’s business process. For example, a CRM answers how to create a sales system. Referred to as front office CRM, they focus on sales, marketing, and customer services. Customer service allows for improving the sales process, although it may fall short if we are talking about a large company needing an API or complex billing modules. In summary, we can conclude that operational CRMs take care of automation in three different sectors. Finally, customer loyalty performs thanks to the automation of services. An example of an Operational CRM is HubSpot.
2. Analytical CRM
Collect and evaluate company data and its relationship with customers. This CRM system focuses on the so-called Business Intelligence through data mining (Data Mining), its storage (Data Warehouse), and its exploitation to analyze customer behavior. The difference between Analytical and operational CRM is that it is not a simple tool to improve processes but focuses on facilitating better decision-making. Analytical CRM exploits, analyze, and offers solutions through all the database information. The Data Warehouse collects any data from the interactions between the customer and your company. OLAP enables you to apply the knowledge and create better sales, marketing, and service strategies by understanding how, when, and where customers interact with the business.
3. Collaborative Types Of CRM
Collaborative CRM is the CRM more focused on communication with the client and within the company itself. Its central aspect is the interaction through different channels such as online chat, telephone, or email.
It is a CRM specialized in the link formed with the client, allowing access from any device and place.
Collaborative CRMs focus on the following:
- Establishment of multi-channel communication with customers
- Maintenance of said communication between departments and company headquarters
- Improvement of the relationship between clients and departments
By centralizing all communications in a single place, it is a perfect CRM for call centers and other similar companies. On the contrary, its main drawback comes from the sales aspect, which is over than the other two options.
It is also interesting for companies with multiple locations that require synchronicity of the business unit. But ultimately, it is simply about improving the communication aspect, both internally and with customers.
These CRMS Focus On Two Types Of Management:
- Interaction management
- Channel management
- Interaction management keeps a record of customer interaction with the company and the different company people with each other regardless of the channel used. So you can put notes on that person to share with others in the organization and any information that facilitates the conversion into a business interaction.
- Channel management focuses on identifying which channel is best for interacting with a specific customer. It also allows you to create comprehensive statistics on which channels generate the best results.
An example of a cooperative CRM is Cooper, centered on Google’s G Suite.
CRM Based On Your Location
We have already talked about the main types of CRM, but there are other types that we want to mention. It is also interesting to know how to differentiate between CRM On-Premise, CRM On Demand or in the cloud, and CRM in the open-source cloud.
These three types of CRM can be, in turn, operational, analytical, or cooperative CRM.
1. On-premise CRM
The On Premise CRM is the most personalized CRM you can have. It is a CRM-developed and customized office.
In addition, they are also managed by it, including the required storage and the server. In this case, if a company has CRM On-Premises, it becomes responsible.
It is the best option for large companies that manage large lists of information. But, on the other hand, it is also significantly more expensive than any other option.
It is about having customized software to respond to the company’s needs. Therefore, it is common for them to make SAP through integrated administration modules.
2. Types Of CRM On Demand
CRM On Demand is a suitable option for companies that cannot afford the cost of CRM On-Premise. Or simply that they don’t need it.
An On-Demand CRM allows you to use all the customization or power options of an On Promise at a lower price when using SaaS.
In this case, it is a paid CRM hosted in the cloud. The company pays for its use, infrastructure, maintenance, and application operation. Still, it does not have the CRM physically in its facilities as in the previous typology.
You have to pay the fee and, if required, the necessary customizations.
Both Salesforce and Zoho are CRMs that fall into this category.
3. Open Source Cloud CRM
Lastly, we have to mention the open-source cloud CRM. This type of CRM has advantages and disadvantages, being, in a way, a hybrid between CRM On Demand and Premise.
The reason is that they host in the cloud, but, at the same time, it has multiple customization options.
Each company can modify and adapt it to its specific needs as it is open-source software.
Benefits of using a Types Of CRM in your company
Although the benefits and advantages of using a CRM will depend on the type and its customization, we can highlight a number of common advantages.
- Automation of all company processes
- More efficient data management
- Personalization of services adapted to the client
- Cost reduction of internal processes
- Increased customer retention rate
- Improved customer experience
- Better internal communication within the company
- Optimization of processes for greater productivity
- Help for more thoughtful data-driven decision making
- Improvement of company sales
Getting the CRM right will allow you complete control of all the company’s processes, from sales to marketing, through business management, accounting, or finance. The most common classification differentiates between operational, analytical, and collaborative CRMs. Thanks to CRM Marketing, better relationship marketing is achieved, making converted leads become recurring customers. Customer service allows for improving the sales process, although it may fall short if we are talking about a large company needing an API or complex billing modules. The difference between Analytical and operational CRM is that it is not a simple tool to improve processes but focuses on facilitating better decision-making.
HELPFULL RESOURCES : What Is A CRM? Definition, Benefits, Types, And Examples