Brands that develop a special bond with customers are more likely to achieve success. In the digital age, those who manage relationships are one step ahead of the competition. After all, without customers, there is no business!

Customer relationship management

The evolution of marketing has led us to a model focused on customer experience. This paradigm shift has been driven by an interest in understanding customer needs and establishing a close relationship.

High street shops and other small businesses know their regular customers by their first names. The world’s big brands want that complicity, too. Customer relationship management, or CRM, is the formula for realizing that goal. 

CRM refers to the set of strategies and techniques used to manage and analyze customer behavior. Using CRM software, brands store and categorize information about their customers and prospects. Contact management, tracking interactions with the brand, and scheduling reminders are some of the most commonly used functions.

Source: Super Office, 2022

But it’s possible to go further…

What is the impact of CRM on brands?

Recent studies show that 43% of companies still use spreadsheets to record and monitor customer information.

CRM allows you to discard these kinds of obsolete manual procedures by automating them. More than 80% of companies use CRM software to obtain sales reports and automate processes. 

This tool also allows you to increase revenues, manage the sales funnel and capture leads. In this way, data analysis will be the foundation for developing marketing campaigns and setting sales and customer service objectives.

Gathering information, at every touchpoint in the journey, provides a holistic view of the customer. For the company’s employees, it is the opportunity to personalize their service and increase their productivity and autonomy.

On the other hand, customers favor brands with which they are already familiar or which offer a personalized experience. Thus, using CRM software allows you to increase customer satisfaction by 45% and raise the revenue generated by 37%.

Implementing a CRM strategy

Developing and implementing a customer relationship management strategy requires some thought. Let’s look at what the most important steps are.

1. Audit

The SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis allows you to study the market and evaluate the competition and determine whether the company has the necessary resources. This makes it easier to identify the path to follow.

2. Setting SMART objectives

Without goals, a business sails adrift, staying afloat until it eventually sinks. Therefore, it is critical to formulate SMART (Specific, Measurable, Achievable, Realistic, Time-Bound) objectives. These should be specific, measurable, achievable, realistic, and time-bound. Through this technique, it is easier to monitor and adjust the CRM strategy.

3. Mapping the customer journey

Knowing who contacts the brand, and how and when they do so, allows you to identify the stages of the sales funnel. 

In addition, creating a buyer persona helps you understand who has bought your products or services. Data such as age, gender, location, socio-economic status, or the preferred contact platform is, constitute the archetype of the ideal customer. From here the personalization of marketing campaigns is a step.

4. Mapping the sales funnel

This step allows you to visualize the customer’s touch points with the brand. Aligning the CRM strategy with the sales funnel helps determine when action is needed to convert the customer.

Source: Asana, 2023

5. Sharing information

CRM software collects information from various sources and presents it in an organized way to the various departments of the company. In this way, employees save time and are more autonomous in their daily tasks.

For this circuit to work, it is necessary to ensure adequate internal communication channels and a transparent communication strategy. By sharing information, each department avoids repeating questions put to the customer.

6. Personalising the customer experience

CRM software organizes customer details and makes it easier to understand strategic goals. As a result, employees can personalize customer contact and improve the customer experience throughout the customer journey.

7. Automatize

Tasks such as integrating new customer data or sending newsletters used to be done manually, taking up large amounts of time. Through automation, you can reduce costs and allocate resources to other tasks.

8. Monitoring strategy performance

It is important to set goals to reach our destination. However, it is equally important to analyze whether we are on the right track. CRM software allows you to evaluate the performance of your teams to ensure that everyone is meeting the objectives you have set. So you can analyze the positive aspects and identify the points for improvement.

CRM strategies to boost business

There are many reasons why brands adopt a CRM strategy. However, most strategies cut across any business. Here are some examples:

• Personalise the customer experience
• Create personalized marketing campaigns
• Reduce costs with automation
• Analyse KPIs
• Manage content

Where is the CRM of the future taking us?

The CRM industry’s evolution has been rampant. Not surprisingly, by 2023, this industry will be worth around $65 billion. By 2029, forecasts indicate growth of $145 billion.

Fonte: Abdalslam, 2023

What fuels such strong growth? Companies adopt CRM strategies to remain competitive in the face of technological evolution and changes in consumer behavior.

So, what should we expect in the coming years?

Artificial Intelligence (AI)

Every day, we hear about artificial intelligence and its application in many different sectors. In the case of CRM, AI is a powerful tool to improve customer relations by automating tasks and personalizing service.

Internet of Things 

The Internet of Things refers to the network that connects billions of devices connected to the Internet. We’re talking about everyday objects like a fridge, a smartphone, or a smart security system.

These devices collect and store data about our daily lives. By integrating this information into CRM software, detailed information about consumer behavior can be obtained. This enables brands to provide highly personalized service.

Mobile CRM 

The pandemic has accelerated the acceptance of remote working. This means the dispersal of work teams around the world. Despite this, it is still necessary to access the information contained in the CRM. Using a tablet or smartphone, professionals can access their customer information anywhere, anytime.

CRM Social

The integration of social media with CRM software is a growing trend. More than ever, customers can comment on their satisfaction (or displeasure) on any digital platform. For brands, it is the opportunity to listen to their customers and maintain close contact in real-time.

CRM Self-Service

In customer relationship management, automation is synonymous with bots that perform tasks and save staff time. In self-service logic, it is the customer himself who seeks the answers he needs.

For companies, self-service CRM saves money by using simple software without the need for specialized IT support.

Voice interface

Technological evolution is accompanied by increasingly simple user interfaces. Voice-activated virtual assistants, such as Siri or Alexa, are gaining ground in the CRM industry. This technology offers a more engaging and simple user experience. Simply use natural language to interact with the software and consequently build a personalized relationship with the customer.

Customer relations are a long-term investment

Personal relationships are the result of our commitment and dedication. They are the result of what we give and what we receive. They are the pillar of our happiness and well-being. 

In business, the brands that offer an engaging and dedicated experience are the ones that thrive. Therefore, a CRM strategy is not a sprint. It’s a marathon! The results will come in the long term, through consistency and dedication. 

For this reason, and also due to technological evolution, it is difficult to predict in which direction customer relationship management will go. In any case, we can state that developing a solid CRM strategy is fundamental to overcoming the challenges of customer relationship management.