CRM methods: What are they?

CRM is hands-down the best tool to increase customer satisfaction and, in turn, to boost your revenue.

Using a CRM can boost revenue by 41% per sales rep and improve lead conversion rates by over 300%, according to Finances Online.

But how do you know what works when using a CRM software and what doesn’t?

In this article, we will cover the most effective CRM methods and best practices so you can hit your sales goals as soon as you starting using it.

What are CRM methods?

CRM methods are practices that businesses use to manage and analyze customer interactions and data throughout the customer lifecycle.

The goal of applying CRM methods is to improve business relationships with customers, enhance customer retention, and drive sales growth.

CRM methods are designed to compile data from a range of different communication channels, including a company’s website, telephone, email, live chat, marketing materials, and social media platforms.

Here's a breakdown of the most effective CRM methods:

1. Data Collection and Management:

Accumulating detailed information on customers, including personal data, purchase history, preferences, and engagement records. This method focuses on creating a centralized database that provides a comprehensive view of the customer.

2. Contact Management:

Organizing and managing customer information to streamline communication and improve customer service and relationships. Contact management involves tracking every interaction with customers and logging the context of each communication.

3. Interaction Tracking:

Keeping a record of every touchpoint a customer has with the business, whether it’s a sales call, an email interaction, or a social media engagement. This method ensures that the business has a historical account of its interactions with each customer, which is crucial for personalizing future communications.

4. Segmentation:

Dividing the customer base into smaller segments based on specific criteria such as demographics, behavior, or purchase history. Segmentation allows for more targeted and effective marketing campaigns and sales strategies.

5. Workflow Automation:

Automating routine tasks, such as follow-up emails, customer onboarding processes, and service alerts. Workflow automation increases efficiency and ensures that important steps in the customer relationship process are not overlooked.

6. Lead Management:

Managing potential customers from the initial point of contact through to the conversion. Lead management involves tracking lead sources, scoring leads based on their likelihood to convert, and nurturing leads through targeted content and offers.

7. Sales Force Automation (SFA):

Using software to automate sales tasks, such as order processing, contact management, inventory monitoring, and sales forecast analysis. SFA aims to enhance the productivity of sales teams and reduce the time spent on administrative tasks.

8. Customer Service and Support:

Implementing systems and processes to manage customer inquiries, complaints, and service requests efficiently. This method often includes a ticketing system to track and resolve customer issues effectively.

9. Campaign Management:

Planning, executing, and analyzing marketing campaigns targeted at specific segments of the customer base. Campaign management tools within a CRM allow for the tracking of campaign performance and ROI.

10. Analytics and Reporting:

Analyzing customer data to gain insights into customer behavior, sales trends, and the effectiveness of marketing campaigns. Reporting tools within a CRM enable businesses to make data-driven decisions.

What CRM method is the most effective?

One effective CRM method that significantly increases ROI is segmentation and personalized marketing.

This method involves dividing the customer base into distinct groups based on various criteria such as demographics, buying behavior, customer lifecycle stage, or product preferences.

These segments are then targeted with personalized marketing messages tailored to their specific interests and needs.

However, choosing CRM method is not enough in itself. It has to be a part of your bigger CRM strategy and allign with your CRM goals.

In order to make sure you get the most out of your CRM, make sure you read this in-depth guide with proven CRM tips shared by the Operations Manager at lemlist.

How to implement a CRM method?

Imagine you’re a B2B SaaS company specializing in project management software wants to increase its subscription renewals and upsell higher-tier plans to its existing customer base.

The company's CRM contains detailed information on customer usage patterns, subscription levels, company sizes, and industries served.

Here’s a step-by-step framework of implementing segmentation and personalized marketing:

1. Segment Creation:

Using your chosen CRM system, you can easily segment your customers into distinct groups based on their usage patterns and current subscription levels.

For example, heavy users on basic plans, light users on premium plans, companies in the tech industry, businesses with teams larger than 100 people.

2. Tailored Communication:

For heavy users on basic plans, you can run a campaign highlighting advanced features available only in premium plans that can address the high usage needs and enhance operational efficiency.

As an example, this might include personalized demos or trial access to premium features.

Meanwhile, for light users on premium plans you can share actionable tips and best practices on maximizing their subscription value through newsletters and webinars. This will encourage deeper engagement and make sure they benefit from with the features they might not be using right now.

3. Outcome:

When implementing segmentation and tailored communication as your go-to CRM method, you can expect to see increased customer satisfaction and higher retention.

By receiving information and offers that directly address their specific needs and challenges, customer satisfaction increases, leading to higher renewal rates.

Moreover, targeted messaging based on usage and subscription level allows you to effectively upsell to higher plans and cross-sell complementary services, thereby increasing average revenue per user.

Focusing marketing and sales efforts on segments with the highest potential for growth or risk of churn optimizes resource allocation, reducing acquisition and retention costs.

The feedback loop created by monitoring customers’ response to segmented campaigns further refines your customer base.

Key takeaways

CRM software is an essential tool for boosting revenue, capable of improving lead conversion rates by over 300%.

Effective CRM methods and best practices for achieving sales goals. These methods include data collection and management, contact management, interaction tracking, segmentation, workflow automation, lead management, sales force automation, customer service and support, campaign management, and more.

Among these, segmentation and personalized marketing is highlighted as especially effective. They allow businesses to target customer groups with tailored messages based on specific criteria like demographics and behavior.