CRM Software
Published August 06th, 2016 by

Basic Functions of Customer Relationship Management Tools

Basic Functions of Customer Relationship Management ToolsCustomers play a vital role in any business. They are the ones who support and buy your products and services. Without these people, industries wouldn’t be as successful as they are now.

However, as the business gets bigger, the more clients they need to serve. Moreover, you need to have a good relationship with them if you want to keep them as your loyal customers. But it’s quite impossible to do such things because you have to operate the business. Fortunately, there’s an application that lets you build a good relationship with your customers. This program that this article is referring to is the Customer Relationship Management tools.

There are many CRM tool providers that you can choose. They profess that they all offer top customer relationship management tools. Some of their claims could be true. However, you need to do your research to ensure that you get the right software for your business. You have to look for the service quality and the functionality and features of the software.

When searching for a CRM application, you need to know the kind of functions and features that it offers. That way, you’ll get the right service for your business.

In this article, you will learn the basic functions and features of the customer relationship management system. But first, you need to know what it is, and how the concept started.

CRM Defined

The Customer Relationship Management, or CRM, is an application that handles data of your customers. It covers the client’s personal contact details, sales history, concerns, etc. With this solution, you can give a rapid service and response to your customers.

Though its primary purpose is to manage the customer relationship, this is not the only thing that it can do. This tool can document the activities of your buyers. You can use this to study their actions and identify their interests. It also analyzes your marketing strategies. It compares numerous tactics and tells you which the most efficient technique is.

Lastly, it monitors the order or the development of the project. Some have GPS features. Others have calendars. With these innovations, you’ll know where the package is, or when the project will be finished. However, these purposes vary. It depends on the customer relationship management application you’re using.

Thus, you need to ensure that you get the right software to enjoy its benefits.

History of CRM Tools

Customer relationship management concepts and technologies became popular in the early 2000s. However, it started in the 80s. The first CRM tool is the spreadsheet. Entrepreneurs typed in the data in this system to follow the customer’s behavior and the business development.

As the years went by, they discovered that using a regular spreadsheet was not enough. Thus, customer relationship management companies created a tool that could handle large volumes of data. However, when this system arrived, it didn’t become an instant hit. It was because of the price. It was so expensive, that only large corporations could afford it.

It was only in the 2000s when people started using this product. The reason was not only because of the lower price. It was also because of the features and functions of the product.

Features of Customer Relationship Management Tools

The customer relationship management solution is known for its great features. Some of the modules that you can get from this tool are as follows.

Multiple-User Settings: This feature has a unique user environment. It enables every staff member to communicate well and efficiently. Each person has access to the schedules of their groupmates. This tool promotes good network connectivity.

Sales Force Automation: It’s another feature provided by customer relationship management tools. It could be in a form of Marketing Automation, a feature that enhances connectivity among the employees of marketing departments. The primary purpose of the SFA is to make the marketing processes accessible by automating monotonous tasks. Moreover, it saves and interprets the strategies well, which reduces human errors.

Data Backup System: You surely know how heartbreaking it is to lose all valuable data that you’ve stored on your desktop. You always wonder how you can retrieve those missing files, but not anymore! Top customer relationship management tools have real-time data backup features. Its purpose is to allow you to recover data whenever your computer crashes. It also automatically saves the changes whenever you modify the document.

Document Sharing: CRM can also work as a collaboration tool. It allows users to share data with authorized people. This feature improves communication in the company. Moreover, it ensures quality production.

Wide Range of Reports: Reporting is essential. It keeps the company and the clients updated regarding their orders. However, there are times when you need to make a report immediately. In times like this, you can use the CRM tool.

It provides an array of reports that you can use for presentation. You can use these details so that you don’t need to go from one department to another to gather information. With this feature, you can save more time on making reports.

Key Functions of CRM Tools

There are three categories of the fundamental functions of a CRM system. These are marketing, sales, and service. Let’s discuss how this tool works in these sections.


Marketing provides long-term planning and short-term performance of marketing strategies in the organization. For long-term plans, quantitative and qualitative measures are set for a predetermined period and various groups. They’re watched based on their execution over a period.

Short-term performance – on the other hand – involves running marketing schemes through different communication courses. It targets a particular group of prospects with a special message concerning a product or a group of goods.

Key Objective of CRM in the Marketing Department: The primary purpose of the customer management system is to create sales-related leads. After that, these leads will turn into revenues.

Lead management involves numerous stages. First, the software processes the generated leads. Then, it implements sanity check. Thirdly, it evaluates the details gathered during the campaign period. Finally, it converts and segregates them into hot leads and cold leads.


CRM in sales department helps the teams perform and handle pre-sales better and in an orderly way. Their responsibility is to get customer interactions in the system. However, it could cause chaos if not handled well.

By the use of CRM tools, information will be organized. By organizing relevant data, everything will work accordingly. You can make a better transaction and close a deal. Moreover, you can meet your quota with ease.

Apart from that, a CRM system can also work as an opportunity management. It guides the salesperson in implementing the recommended activities for different stages. This process refers to “Guided Sales Methodology.”

When the opportunity management reaches the “quotation stage,” the tool creates a request, which converts into a new sales order. Once transformed, the purchase goes to the ERP system for further accomplishment and delivery.


The primary purpose of this tool is to enhance customer service. Thus, it records every conversation and documents the concerns of their clients. That way, it will be easier to give a response if there’s a technical issue.

However, it’s not the only function of the CRM tool in the sales section. It can also do the following tasks:

  1. Prevents “leakage” of Warranties. Warranties, like contracts, should be a private matter. It should only be seen by the clients involved. If it leaks, it could result in a larger problem.
  2. Stops problems arising with regards to non-conformity of the Service Level Agreement. SLA is a contract between the company and its customers. It ensures that every client must get quality service. Hence, if the company fails to follow the agreement, you will be given some penalties.
  3. Provides a multiple-level support to customers. Every client has different concerns. Some experience greater technical issues, while others have minor problems. With this software, you can give multi-level support to your customers.

These are the fundamental features and functions of CRM tools. With this system, you can make better marketing strategy and improve sales and service.

As stated earlier, you can find a lot of CRM software providers online and offline. However, not all of them provide excellent features and functions. They may sound good on the ads, but remember the purpose of their campaigns – to increase sales. Thus, you should never fall for these claims.

When looking for the best software, the first thing you should look for is the customer relationship management reviews. These write-ups will tell you what you need to know about a particular CRM package. However, you have to make sure that it comes from a reliable source. Otherwise, you wouldn’t get the information that you need.

When searching for fair reviews of CRM software, the best place would be CrowdReviews. It provides a list of CRM software products and ranks them based on customer reviews. With this website, you’ll get to read honest customer relationship management tool reviews. Moreover, you’ll get to choose the right solution for your company.

Keith Moore

Keith Moore has worked with several leading Android development agencies to build customized mobile apps enabling businesses to extend the use of their services to smart phones and mobile devices.

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