What Are The Benefits of CRM? How Is CRM Different From Marketing Automation?


Saffron Edge


Aug 30, 2021


5 min read

CRM or Customer Relation Management is the automated process that efficiently manages the business relationship between you and your customers- present and prospective leads. With a clear-cut objective of enhancing how the business meets its customers, the concept of CRM enables you to understand your consumer base to streamline the product purchase process and promote customer loyalty and brand credibility aspects. The primary role of administering CRM policies into your business operations is to achieve better customer satisfaction statistics because customer loyalty plays an imperative role in upscaling or reducing the revenue numbers of your firm.  Marketing Automation

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A survey from 2018 said that 16% of the organizations in the USA had considered delivery of real-time consumer interactions across touchpoints as effective. It shows that organizations were keen to use CRM technology. With the accelerating growth in the business industry, the need to anticipate customer behavior and interact with them is of utmost significance now. CRM technology majorly includes policies, practice rules, and guidelines that frame governing standards on communicating with identities- customers, employees, departmental suppliers, and everyone linked with the business. Luckily, CRM technology is not department-specific, which means every division of your business can establish and avail the benefits of CRM to boost the firm's overall revenues. Many global companies say that technologies like CRM help them to ensure a good customer experience. They consider it to be a key driver behind their digital transformation. An interesting fact about CRM is that its global market has had an estimated USD 43.7 billion in the last year Researchers say the value shall increase exceedingly in the coming years. While CRM provides an easy way to store the data regarding your current customers and potential leads, lead-transformation opportunities, campaign details, and sales figures, the best thing to know about it is its easy to access by your company. With direct access to more information about customer conversions and sales stats, your management can make better growth decisions and lead with productivity amongst the rivals.

Advantages Of CRM

In today's time, your business should aim to make the most of customer relationship management technology to improve what you have with your existing customers and acquire new prospects with the proper means. The following are some of the prime advantages of implementing CRM technology in your business - 

1. Eases The Discovery Of New And Right Customer

The primary advantage of a CRM application is that it allows your business to target and acquire new customers. One can accomplish it by following a customer persona or tapping the existing customer's profile description to anticipate your target customer. CRM technology uses lead-identification tools to realize the appropriate target and further nurture them till they're ready for sales, thus increasing the conversion rate, The identification of new customers, CRM also aids the nurturing of the existing customers that are a vital part of business growth. Your business needs to maintain the same relationship with the current customers, ensuring trust-building and flourishing with time. In addition, when your business gets the correct information about customer background via CRM, it becomes easy for your sales department to focus on conversions and client building. sale

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2. Making Sales and Marketing Services Simple 

Another significant benefit of using customer relationship management technology in your business is how simpler it makes the sales and marketing functions, resulting in effective customer communication. Moreover, the tech system facilitates efficiency on the different communication channels to ensure that customers do not wait for your response. For instance, marketing automation that uses autoresponders to communicate with the users can benefit the CRM system.

3. Personalized Approach With Technology

CRM allows you to take charge and store the consumer data, sales figures, and mostly every information about each business component so the management can make personalized outreach possible. As you get routine insights about your customer's interests, it becomes efficient for your business to tap on one-on-one communication and design campaigns with marketing automation tools. For instance, if your prospective customer searches for your product/service, it is a great time to facilitate drip marketing campaigns that include user-specific informative emails rather than generic ones. By triggering these actions, your business earns a spot at being relevant and providing what the customers want. 

Critical Differences Between CRM and Marketing Automation Tools

While many people consider CRM and Marketing Automation as one concept, it is highly recommended to blend both in your managerial decisions. Nevertheless, CRM and marketing automation do serve different purposes in a business. Let's have a closer look at it - 
  • Who Uses It - While customer relationship management technology is used by your business' sales department to feasibly operate and generate consumer leads, the other technology, i.e., marketing automation, is majorly handled by the marketing department. They streamline repetitive communication tasks with existing customers and new prospects. It is essential to identify the areas where your business can deploy both the concepts, such as CRM and Marketing Automation, both help acquire customer-related information and insights.

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  • Why It Is Used - The prime difference between CRM and Marketing Automation is what functions they perform. The former technology helps provide insightful information to your sales team to connect with the right customer with the right content. On the other hand, Marketing Automation allows your business to eliminate human-made errors by deploying software to perform marketing tasks. It is put into use by your marketing team to run effective campaigns for generating quality leads and publicity.
  • Business Goal - Here, Marketing Automation and CRM somehow depend upon each other and work in harmony. The former's objective is to bring in quality leads and provide them to the latter, the sales team. Obtaining quality leads might be the first step that your business does with the help of Marketing Automation; however, the next step is to transform and nurture those sales-ready leads into business customers via CRM.
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