Customer Relationship Management (CRM) solutions are crucial for a competitive advantage in today’s markets. It will help your business organize customer data more efficiently and create better workflows for your overall business processes. However, you need to understand the various types of CRM solutions available to find the right fit for your organization.
CRM Classifications Based on Function
CRM software often is built to have core competencies in particular areas. Here are the types of CRMs you can expect to find based on function:
1. Operational CRM
Operational CRM solutions concentrate on functionalities like marketing automation or sales automation. They are designed to increase operational efficiency through managing leads, contacts and customer accounts. Operational CRM also provides marketing metrics to help organizations send automated emails and newsletters. Businesses are sure to improve their productivity using this type of CRM.
2. Analytical CRM
Analytical CRM solutions are designed to turn customer data into business insights. The solutions have more tools for data analytics and key performance indicator (KPI) measurements. This type of CRM tool is great for strategic planning.
3. Collaborative CRM
Collaborative CRM systems emphasize the sharing aspects of information. When multiple business units are working on a product, information gathering and sharing can become complex. Collaborative CRM software tries to improve team coordination and cooperation through streamlined data sharing.
Most modern CRMs will have some functionalities from each group; but depending on the developer, a solution will lean towards certain core competencies.
CRM Systems Based on Installation
Depending on infrastructure requirements, CRM solutions can be divided into two categories:
A. On-premise CRM
With on-premise CRM platforms you are responsible for the infrastructure. The CRM solution is installed on your organization’s servers. You can decide to manage the servers yourself or get support from the development company, but the support team needs the ability to locally maintain your solution. Generally, enterprises use an on-premise CRM as it can be too expensive for small businesses.
B. Cloud-based CRM
Cloud-based CRM solutions have gained popularity in recent years. You can buy licenses or subscribe. These solutions give you more flexibility to increase or decrease your CRM capabilities depending on your needs. The CRM solution provider is responsible for the maintenance of the infrastructure in the cloud. You just use the solution as a Software-as-a-Service (SaaS).
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