What is a CRM and what is it for?

The meaning of CRM comes from the English, Customer Relationship Management , which in Spanish translates as Customer Relationship Management.

The definition of CRM is a company software that is used to manage all communications, opportunities, documentation and other management with clients. All this in order to have everything in one place and is accessible to the entire company.

In detail, it is a program or application in which all the conversations that any of the company has with a client, whether they are emails, calls or meetings, are automatically saved in a record that is created in the CRM system .

This file is accessible to your entire business and, in addition, these conversations can be put into internal notes and/or activities with a date to do, assigned to you or another colleague, thus greatly improving productivity and internal communication .

That said, now you know what a CRM is 

In general, what is a CRM software for?

A CRM is mainly useful for 3 things:

  • Improve internal communication and there is nothing left undone thanks to being able to assign activities to you or anyone in the company. In addition, you can see what is pending to be done for a client, project, opportunity, task, etc. All in one click.
  • People are more productive by avoiding multiple emails, meetings, and calls requesting or sending customer information to other colleagues.
  • The commercials sell more thanks to the fact that they keep track of all their potential sales in a personalized way, thus being able to carry more sales at the same time.

The data doesn’t lie: According to McKinsey, at work we spend a whopping 65% of our time on emails, calls, and meetings . That leaves very little time for our own productivity.

And according to Adecco, the problem of productivity does not lie in the distractions to which the worker is exposed daily, but in the productivity tools that the company makes available to its workers .

At first you will think that the first solution is Excel, but after a short time it becomes unmanageable since it is not designed for that.

A CRM software is essential to increase the sales and productivity of an entire company .

That said, let’s learn a little about the history of CRM :


Why is Customer Relationship Management important?

When we talk about a CRM program we may be referring to a business management philosophy or business software.

Let’s get to know each one in depth:

CRM as a business management philosophy

Many companies have realized a fundamental premise. The ultimate reason for a business to exist is customers; since without clients there is no income, and without income there is no business.

Starting from this basis, the concept of CRM was born as a way of managing the business in which the customer is placed at the center of all departments, all operations and, ultimately, of the entire company.

This management system, also called customer-centric, far from being a toast to the sun, materializes with customer loyalty programs, analysis of the current and future customer base or management tools such as CRM.

CRM as management software

With the digitization of the economy and most business processes, the old contact managers have evolved into more modern solutions.

The definitive evolution of this type of tools led to the current CRM, which are tools with which to manage relationships with your customers.

Most of these solutions today are based on the cloud (or cloud computing) with SaaS business models and multiple functionalities, from managing marketing campaigns to generating reports.

These tools are essential to be able to implement a customer-centric philosophy in your company .

Benefits of using a CRM

One of the greatest benefits of a sales system (CRM strategy + use of CRM software) is that it allows you to provide 100% personalized and fast customer service .

In this way, it helps customer loyalty since people can know the needs and expectations of each type of customer in just one click.

With a CRM program you can segment your customer base, which also makes it easier to plan sales and marketing strategies more effectively and increase revenue.

Selling more, improving customer satisfaction and facilitating internal communication is the least you can ask of a CRM.

However, over time, these tools have evolved and can offer much more .

Keep in mind that CRM software are modular tools. This means that new functionalities can be integrated as the business takes advantage of them, and the possibilities are almost endless.

If you want to know more, I leave you here an article about the 8 benefits of a CRM .

oh! Speaking of this topic, we have made a guide that will help you take your business to the next level. Download it for free now :


Let’s continue…

There are different types of CRM software

Every day we find different kinds of CRM in the market. However, we recommend that before you opt for one, analyze what type of business strategy you have and what type of product you are offering.

Having that already defined, you can choose any of these 3 types of CRM :


1. Operational CRM

This type of software has a much more complete structure, since its purpose is

is to generate new leads, always focusing on customers and their direct interaction with them.

In a few words, it could be said that it focuses on managing marketing, sales and customer services. All these processes are called “Front Office” because the company has contact with the client.

2. Collaborative CRM

Type of CRM that aims to facilitate interaction between several commercial establishments at the same time, offering a set of tools that allow communication support between the different departments of your company.

It could be said that it centralizes and organizes all the information and data that the client provides through different channels.

3. Analytical CRM

Finally, it corresponds to the different applications and tools that provide customer information, so the analytical CRM is linked to a data or information repository called Data Warehouse. It is used in order to make decisions regarding products and services, and to evaluate results.

It aims to collect and analyze marketing data that helps your business acquire new target audiences and retain old customers.

Lately, it is being analyzed that there is another type of software such as strategic CRM, which focuses more on cooperation with large clients, which can bring a significant benefit to any business, without the need to increase performance too much.

And the ERPs? How is it different from a CRM?

Many times, when we look for information about a CRM, we see it related to the acronym ERP, which stands for Enterprise Resource Planning, which are business resource planning systems.

Unlike the CRM system, an ERP is a “Back Office” platform, that is, it does not interact with customers, but is a platform to coordinate the company’s internal communication. ERPs focus more on finance, revenue analysis, stock, accounting, etc. and all this integrated with a CRM software.

I leave you an article so that you know in depth the differences between CRM and ERP .

Now, if you want to know what type of CRM can be key for your business, at Efficy we’ll give you a free, no-obligation tour. Request your demo now .


How can a Customer Relationship Management influence an entire company?

Also known as customer management software, a CRM is indispensable since it not only works with a single role, but it is so agile that it can be useful for each of the departments that make up any business. For example:

  • A CRM for sales: Sell more and in less
  • A CRM for marketing: Connect and create with messages that impact
  • A CRM customer service: Improve the satisfaction of your customers
  • And a CRM management: Optimize your internal communication