What Is a CRM Database

Last Updated on March 1, 2020 by The Soft Best

The CRM database software is a tool that lets you manage the relationship with customers and understand the effectiveness of marketing strategies. All this is done with a database that segments customers by groups and offers valuable information about each one of them. In this way, you can customize the content to each group of customers and increase the number of loyal customers and the conversion rate.

What Is a CRM Database

What Is a CRM Database

Now, what is the relationship between database management with CRM software? Only the correct functioning of the CRM system is understood if the database with which it works performs the work optimally to add value to the company. A good database is a fundamental element for the company to achieve benefits thanks to the operation of its marketing and sales department.

Functions of CRM database management with CRM software

There are many benefits that a CRM system provides to a company’s database because it allows improving the quality of the data and the relationship with customers. The most important are:

  • Customer Segmentation
  • Design of marketing strategies with personalized content. It allows the integration of marketing automation.
  • Access to the information of each client.
  • Improves inter-departmental communication, since all members of the company have access to the database.
  • Check customer history.
  • Detect customer buying trends.
  • Establish a client-centric vision.
  • Store valuable data as the communication channels that each client uses most. Good omnichannel management.
  • Calculate the ROI (Return on Investment) of marketing campaigns to analyze the benefits.

Advantages of optimal database management with CRM Database

  • Centralization of information in a single tool and unification of the interactions between your business and customers.
  • Customer segmentation, which allows you to offer personalized content to increase the level of conversion and build customer loyalty.
  • Access to customer history easily. This will allow you to offer a quality service, to know the preferences of the user, or to which profile it belongs.
  • Calculation of the ROI so you can know the profitability of marketing campaigns and keep up to date with the elements that are most effective among your customers.

Integration With Other Systems

Optimal database management with CRM software is possible thanks to the integration of tasks and access to the same information of all members of the company. But it can also be useful to implement an ERP system that allows you to manage the company’s internal processes. The ERP software allows you to make correct planning of the company’s operations to increase the efficiency of the service.

There are some business models in which two solutions are perfectly compatible and can improve the productivity of the organization. For example, it is the case of call centers or contact centers. These companies base their work on telemarketing and customer communication, so a CRM solution that helps manage users and strengthen their database is essential.

Is CRM the Same as a Database?

A CRM is much more than a database since it not only serves to know the contact details of a person. It also offers information as if the user is a frequent customer, if you can send an email with valuable content or if You are ready to make a purchase.

The first thing you should know is the concrete difference between the two terms. A database is a tool (usually Excel) in which you can store specific contact data of a user such as a landline, mobile number, residence or office address, and full name in an organized and easily accessible way.

At the same time, a CRM is a solution of management for customer relationship-oriented three key areas: business management, marketing, and service to the customer. Customer Relationship Management or CRM enables centralized in a single database all interactions between a company and its customers, allows them to share and maximize the knowledge of a client to understand their needs and anticipate them.

You already know that a database and CRM are not the same. Now it is time to know how a database can become an augmented tool that contributes 100% to the sales area and the rest of the company. (You can also read: Meet the top 5 of the most recommended CRM platforms by experts).

Let’s get into the matter. A CRM helps companies to manage relationships with their customers in an organized way. For example, a company can create a customer database that perfectly describes its status (customer, non-customer, future customer) so that sales agents can meet and respond to the needs of users with the right offer or message.

What else does the CRM Database help in a company?

  • In the marketing area, it helps companies identify and select the best customers, to manage marketing campaigns that generate quality opportunities for the sales area.
  • It helps companies to improve sales management by optimizing the information of each contact in the database. In other words, the sales area knows if the user is ready to buy or not.
  • It allows personalized relationships with customers to improve their relationship with them and intensify the benefits. For example, you can identify frequent customers and offer more products or services.
  • It provides employees with the information and processes necessary to meet customers, understand and identify the specific needs of each one.

In conclusion, more and more companies are turning to CRM Database to manage their relationships with customers.