What is a CRM system?

The guide for beginners

With customer relationship management (CRM for short), you place the needs of your customers at the center of all business processes. The basic objectives are customer acquisition and customer retention.

To achieve this, you not only formulate an individual strategy, but also let a suitable CRM system support you in designing customer-friendly processes throughout the company. The following information provides practical tips and makes it easier to get started in the world of customer relationship management.

What is a CRM?
What is a CRM system?
What is CRM software?

A clarification of terms is necessary

CRM, CRM system and CRM software are terms that are often used synonymously but describe different things. CRM stands for Customer Relationship Management, a comprehensive strategy for managing customer relationships. The digital tool that a company uses to implement this strategy is called a CRM system (platform) and the specific application that employees work with to implement the CRM strategy is called CRM software.

Important to know: There is no single definition, because customer relationship management is not an isolated instrument, but is incorporated into business processes as part of the corporate philosophy. Therefore, the respective structure of the company determines the individual CRM definition. You can find out more about objectives, forms and strategies in our blog article CRM definition.

1. definition of CRM: short, concise, understandable

Customer relationship management is the focus of a company on its customers. The basic objectives are customer acquisition and customer retention. Customer relationship management is therefore concerned with designing business processes around existing and potential customers. By capturing all relevant data with CRM software, marketing can focus precisely on the needs of customers and is therefore referred to as relationship marketing. This management concept makes it possible to increase the company's success.

CRM as a strategy:
This refers to the deliberate alignment of business processes with the customer or an optimal customer experience.
CRM as a process:
This refers to the comprehensive processes for customer orientation. These include not only the technological, but also the strategic, systematic procedures of a company.
CRM as software:
Often also referred to as a CRM system or CRM solution. It provides the technological basis for recording, analyzing and presenting business interactions with customers or other relationships.

2. CRM software

Software supports the optimization of customer relationship management. It records all relevant customer data and processes in a structured manner and thus relieves the various areas of the company that are in contact with customers. The software increases the efficiency of all areas and relationships. For example, CRM software can be used to create customized offers for individual customers or customer groups. Or the company can increase customer loyalty by providing customized service. Further and more detailed information can be found here:

3. the most important approaches

Analytical CRM:
Evaluation of data from operational business based on KPIs to evaluate product requirements.
Operational CRM:
The supporting function of the CRM system for the specialist departments to initiate contact and maintain customer relationships.
Collaborative CRM:
Deals with collaboration within the company and with external partners.
Communicative CRM:
Controls all communication channels with a focus on the customer.
Social CRM:
Expansion of classic customer relationship management through dialog with users of social media channels, i.e. social networks such as Facebook, Twitter, LinkedIn, XING, etc. (social media integration).

Excursus: CRM and customer centricity

The foundation of customer-oriented corporate management
Customer centricity is at the heart of every successful CRM strategy. This concept revolves around the essential question: What motivates our customers today and tomorrow? By aligning their products and services with the current and future wishes of their customers, companies place them at the center of all their activities. A powerful CRM system acts as a central hub for this customer-oriented approach. It not only serves as a treasure trove of valuable customer data, but also enables strategic planning, task definition and the semi-automated implementation of customer-centric measures. In CRM, all points of contact - known as touchpoints - between customers and the company are recorded and analyzed.

From the customer journey to customer experience management
This comprehensive documentation makes it possible to track the entire customer journey - from the first encounter to the final purchase. The more detailed this customer journey is recorded, the more precisely tailored and personalized content can be developed for future interactions. The aim is to offer the customer a consistently positive experience with the company, its products and services - an approach known as customer experience management, which strengthens customer loyalty in the long term.

For teams

Procurement
Event Management
Finance & Accounting
marketing
Employee Development
Public Administration
Recruiting
Service & IT
Sales & Distribution
Central Management

For industries

For company sizes

Corporations and large companies
Medium-sized companies
Small companies and start-ups

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A good system offers numerous advantages for you and your employees. It promotes transparent, team-oriented work, increases the efficiency of your various departments and provides key figures for analysis and conclusions.

These are all small goals on the way to increasing customer loyalty and generating new customers. At the end of this journey is the overarching goal of creating a positive customer experience with the system.

Read more in our blog article about the benefits of a CRM system.

Concrete benefits of a CRM system

Much more than just customer management

In practice, you use a CRM system primarily with the aim of being able to track and optimize interactions with interested parties and your buyers. This includes not only the storage and organization of customer data, but also the design of optimal business processes - tailored to a satisfactory customer experience. You can also use CRM programs - or in this case xRM systems (Any Relationship Management) - to manage all other business relationships, whether with suppliers, dealers, partners or your employees (keyword CRM for B2E).

Track interactions over 360

You save contact details and preferences of your customers as well as service requests.
You record phone calls, e-mails, meetings and presentations.
You store notes, files, appointments, contracts, products and other plans directly in the electronic customer file.
100% e-mail integration into the CRM is extremely important because 90% of communication today takes place via e-mail clients.
This enables employees to quickly access all current information as well as letter and e-mail templates or forms at any time.
Your customers can thus be advised individually and informed about other products via e-mail marketing.
Every user benefits from simple workflows, an enormous relief in operational customer relationship management.
This allows your company's customer base and profits to grow.

Dashboard_Management_auf-Laptop_gesp_GEDYS-IntraWare

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Fluid processes and valuable insights

Thanks to CRM with sales management, everyone in the sales team has an insight into day-to-day business and can keep an eye on figures and targets, for example for forecasting or conversion rates.
With overviews, helpful resubmissions and cross-departmental workflows, processes are optimized and opportunities are no longer missed thanks to the follow-up function.
Comprehensive knowledge about your customers helps you to take advantage of opportunities in up- and cross-selling or key account management.
In marketing, your team recognizes potential customers precisely and can address them in a targeted manner.
Both departments actively process CRM campaigns via campaign management.
The quality of service increases thanks to faster response times and extensive background information on every customer inquiry as well as access to expertise for customers as a self-service.
Thanks to the ticket system and time recording, not only is organization easier, but the department head can also keep an eye on current issues and the efficiency of processes.
Department heads and top management benefit from the data in the system, which supports the management of the company via dashboards and reports.

In addition to versatile functions, the features of a CRM system are useful for supporting your company in the various phases of the business process.

Some features serve as the basis for centralized and transparent communication within the company. Others specifically support sales, marketing and service as well as their exchange.

GDPR-compliant contact management
Cross-departmental teamwork
Higher productivity and efficiency
Modern sales management
Accurate sales forecasts and corporate management
Reliable reporting functions
Better sales figures
Higher customer satisfaction and loyalty
Better marketing ROI
Valuable suggestions for products and services

GDPR in CRM

100% legally compliant data processing

When it comes to data collection and processing, there is no way around the legal provisions of the General Data Protection Regulation (GDPR). Compliance with all requirements is not at all trivial. It is therefore a great advantage for you and your employees if your CRM system already has the most important basic functions for compliance with the GDPR. This saves time-consuming training of individual employees and, not least, high fines for incorrect data processing. Read more about what you need to consider with regard to GDPR in CRM and what the 100% GDPR-compliant GEDYS IntraWare CRM offers you.

CRM and e-mail integration

Fewer clicks for faster work

In day-to-day business, e-mail has long since established itself as the most widely used medium for communication. You can therefore easily imagine the benefits of seamless collaboration between the email and CRM systems. Get a 360° overview of the sender in the email program with all the data your CRM system has to offer. Or create a new contact in CRM directly from the e-mail. This is easy with the BusinessMail® e-mail integration from GEDYS IntraWare.

The CRM software comparison

How do you make the right choice?

When selecting CRM software , it is important to consider what your company needs. This means you should look at your processes, structures and business workflows and determine where software functions can be helpful and which functions you can do without.

Think about the important questions here: Do we want to use an on-premise or cloud solution? And if so, as software-as-a-service? From there, it will be much easier to define your must-haves and include or exclude providers.

Comparison of some advantages and disadvantages

	Cloud-based / SaaS	Server-Client / On Premise
Advantages	Fast setup	Internal data sovereignty
	Little investment at the beginning	Offline and online use
	High flexibility for users, modules, configuration, runtime, etc.	Individual adaptation possible = customizing
	Always the latest software version
Disadvantages	Online only = via browser	Internal IT necessary
	Data sovereignty lies externally with the provider	Internal or external service for operation and maintenance
		High initial investment in software and hardware

Valuable tips for comparison

Our blog article 9 questions for CRM comparison will help you to ask yourself the right questions before you start choosing a provider. Please note: A good customer system integrates into your existingIT infrastructure and connects with yourERP system in the best possible way.

Checklist for your CRM selection

Use our CRM requirements overview checklist to compare the functions of different providers and define yourown requirements for the right software in a specification sheet.

Cloud-based CRM (SaaS)

A cloud CRM system - i.e. a CRM as SaaS (Software as a Service) - is characterized in particular by its high flexibility and low cost. Software and databases operate in the cloud and offer high performance and storage capacity with a stable internet connection. Hardware, operating and infrastructure costs as well as maintenance costs are all borne by the provider and are transparently included in the rental price.

All employees can access the system from any location via a simple browser without any additional technology. Practical license models make it easy to increase or decrease the number of users to be financed, which is a great advantage for growing companies in particular. Modern hosting in Germany also ensures the necessary data security.

Server-Client = On-Premises

With the on-premises model, the user buys the CRM software and operates it independently in the in-house or specially rented data center. The user is therefore responsible for the hardware, operation, infrastructure and maintenance work, for which additional IT staff are usually employed. What on-premises models lose in flexibility here, they usually make up for in customization options. Accordingly, they are suitable for companies that have particularly individual requirements for their CRM software.

You can read more about the question of whether cloud CRM or on-premises in our blog article "Better cloud or on-prem?

What is a CRM app?

A CRM app for mobile devices is ideal for all companies that have employees in the field. They can access the CRM data and functions from anywhere at any time without having to have a desktop with them. While a regular connection to the Internet is useful for keeping the data up to date, it can also be accessed offline - changes are then synchronized immediately the next time there is an Internet connection. Dictation functions or route planners also ensure optimum effectiveness when on the move.

Integrations & interfaces

Integrations and interfaces enable CRM systems to access standardized data records or transfer data from one system to another. This is of great importance when it comes to centralized and transparent business processes.

The link to the ERP system is certainly the most important at the beginning. This involves very basic customer data such as purchased products and payment transactions. But interfaces and integrations also pay off at other process points, such as the service organization with ticket system, quotation creation, sales management, route planning or telephone connection for an efficient way of working.

What does a CRM cost?

What do license prices depend on?

The cost of a CRM system depends heavily on the choice of technical basis and the degree of customization of the functions. From free offers with the usual basic functions and for small teams to variants with a high degree of customization, you will find a wide range of options on the market, so there should be something to suit every budget.

SaaS CRM

The cloud CRM system has decisive advantages and is suitable for companies that have less individual requirements for their CRM software and want to get started quickly. You save on extensive investments in IT landscape and personnel because hosting can usually be rented directly. This means that CRM costs are particularly clear and the service can be easily expanded to include maintenance services or additional modules if required.

For example, you can rent GEDYS IntraWare Cloud CRM with all basic functions from just €59 per month per user. You can expand modules as required, configure individually, receive training or additional services such as maintenance and support.

Server client

Is an off-the-shelf CRM system not enough for you? The optimal solution for your company sometimes has to be tailored to your needs. In case of doubt, this may cost you a little more, but it pays off. Because customized CRM means optimum efficiency in your processes and saved time and stress for your employees.

Whether as an in-house or web solution - at GEDYS IntraWare we welcome every challenge and create the perfect solutions for every business requirement in close cooperation with our customers. Depending on the special customizing of our software, you will receive your individual CRM solution from as little as €30,000.

Introduction of a customer management system

Once the selection of a (cloud-based) CRM system has been made, you will ideally have a competent consultant at your side. Nevertheless, there are a few hidden pitfalls in the software implementation process. Read our blog article The 7 phases of introducing a CRM system to find out what you can expect now and what you should look out for.

You can find more information in our guide to introducing a CRM system and in our detailed e-book In 15 stages to CRM - from the CRM idea to implementation.

Correct use of your customer loyalty system

Dos & Don'ts before and after the CRM implementation

1. don't
see customer relationship management only as software

Don't forget that this is not just about integrating software into your company, but much more about implementing your customer strategy.

2. DO
Involve employees

The implementation project stands and falls with your employees. Include the input of your employees, make sure they are aware of the benefits of customer relationship management and receive the appropriate training to use the new software.

3. DO
Evaluate customer system regularly

The tool lives and grows with your company. It is therefore important to review the system and strategy at regular intervals with regard to processes, users and technology and to consider updates if necessary.

4. DON'T
Expect ROI immediately

The ROI of your CRM system will not happen overnight. It is a process that takes time. But even before you introduce the system, think about what data you can use to determine and check the ROI (e.g. customer satisfaction). You will see that success will follow.

5. DO
Communication!

Maintain open communication with your employees and the CRM team. If difficulties or suggestions for improvement are not heard and discussed, the customer loyalty software cannot work optimally for your company and will not bring the success you want.

Summary

The most important facts about CRM and CRM systems at a glance

CRM definition:
Customer Relationship Management, or CRM for short, stands for the alignment of business processes with the customer. It encompasses a comprehensive view of all customer data, interactions and touchpoints. CRM software offers technical support in implementing your CRM strategy and achieving your business goals.
CRM suitability:
The nature of the need for CRM systems differs according to the size and focus of individual teams, industries and company sizes. In addition, CRM software can manage all conceivable business relationships in addition to customer relationships (as xRM).
CRM benefits:
In addition to better corporate relationships, CRM promotes productivity, customer loyalty, business forecasting, sales and marketing activities and service performance.
Forms of CRM:
Whether in-house, from the cloud or as a mobile app - different technical forms of CRM systems are suitable depending on the requirements of the individual company.
CRM networking:
It is absolutely important to realize that linking the CRM system with the rest of the IT landscape via interfaces and integrations can expand and increase the management of the CRM, from connecting Íour ERP system to email integration and AI tools.
CRM selection:
First consider exactly what you need and use these basic criteria to search for a suitable CRM provider.
CRM implementation:
Take a step-by-step approach when introducing your CRM system and ensure that all employees are on board and are aware of the CRM benefits.

What is a CRM system?

The guide for beginners

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What is a CRM?What is a CRM system? What is CRM software?

A clarification of terms is necessary

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