What Is a CRM? And How Does it Help Businesses?

CRM stands for customer relationship management and refers to the combination of strategies and technologies businesses use to optimise customer engagement and use data best. Overall, customer relationship management combines sales, marketing, and service under one system and/or strategy so that teams can align their efforts to meet their organisation’s goals. 

A strong CRM strategy accounts for all stages of the buyer’s journey, from when a potential customer becomes aware of your brand to after they make a purchase and become a loyal, repeat customer.  

CRM industry leader CIO predicts that 2024 will focus more on personalising customer experiences, more CRM processes powered by AI, and centralising data strategies[1]. With these trends in mind, you may find that customer relationship management is a rewarding career.

Keep reading to discover how CRM systems work, which are the most common, and how to get started in CRM. 

What is a CRM system, and what can it do? 

The main purpose behind a CRM system such as Salesforce or Hubspot is to use data and automation to achieve company revenue goals. Let’s explore some typical CRM system capabilities. 

Customer experience 

Settings and features within CRM systems can improve customer experience in several ways, including automating replies to support requests, signalling when to follow up with cold and warm leads, and customising messages to fit customers’ specific needs. A good customer experience can help gain customer loyalty.

This video from the HubSpot Sales Representative professional certificate provides a quick peek at the fundamentals of lead management.

Sales

CRM systems allow sales teams to monitor the sales pipeline and categorise leads to prioritise their marketing efforts and drive sales.  The sales pipeline helps businesses or marketing teams visually track potential buyers as they progress through the purchasing process.

Marketing

CRM systems can streamline audience targeting to help reach niche audiences during a marketing campaign or message customers at various stages in the buyer’s journey. This way, audiences get the content they need exactly when needed, empowering them to make empowered buying decisions. 

Collaboration across teams

When data is widely accessible, teams have more opportunities for impactful collaborations and cross-functional work.   

Did you know? Global revenue from CRM systems is projected to reach 89.3 billion USD in 2024 and grow to 146 billion USD by 2029, according to findings from Statista [2]. 

How to get started with CRM 

Review your career goals and follow these steps to start your CRM journey:  

1. Explore CRM career paths.

Learning CRM can open up a variety of career opportunities in roles such as: 

• CRM consultant: Guides organisations on improving customer experience with new strategies, systems, and training recommendations. 

• CRM administrator: Provides IT support so organisations get the most out of their CRM systems. 

A CRM might be useful in other roles, including sales development, sales representative, and marketing manager. 

2. Gain relevant experience. 

Experience in sales, marketing, or customer service roles can build skills that transfer to CRM roles and use CRM tools. Here are examples:  

• Starting your own business, building a customer base, and offering an engaging customer experience 

• Working in a customer support or help desk role 

• Taking on a sales rep or sales development rep job 

3. Take a CRM course.

One of the most direct ways to get to know CRM as a career field, set of strategies, and a fleet of technologies is to take a course. Look for courses that cover the conceptual, strategic, and tactical aspects of CRM, including:  

• Articulating business goals

• Designing and delivering content that engages customers at every stage of the buyer’s journey

• Segmenting customers to personalise their experiences 

4. Research CRM tools. 

Once you have working knowledge of CRM and what it can enable for your career, learning how to use common CRM software tools is a good idea. Explore a few options in the table below.

Choose a CRM tool that matches your career goals, whether to grow your business or seek employment in CRM. Consider the following factors: 

• How a CRM’s features can help you grow your business 

• Pricing options 

• Learning curve 

• Time it will take to import data and set up automation

• The tools companies in your industry most use 

What do users think of CRM systems?

You may find it useful to determine what users think of CRM systems. G2.com is a helpful site for reading reviews of different software programs, including CRM, and seeing how they compare. For example, Salesforce, HubSpot, Freshsales, and Monday each score 4.5/5 or higher among users who submit their feedback to G2 [3].

5. Practice using CRM tools.

Once you've researched several CRM tools, select a few to practice using, especially if a free trial is available, before making a long-term investment. Some of the tasks you’ll want to practice include: 

Importing data

Data might include information about customers, sales, and marketing channel activity. For learning purposes, you may be able to use actual data from your own business or simulate it with made-up information. 

Setting up automation

Automations help ensure important tasks are completed without having to be executed manually. Practice automating email sequences to prospective and current customers and delivering freemium content to new subscribers. 

Monitoring results

Select a few metrics to measure for practice, such as email opens, social media mentions, and conversion rate, and set a date for checking in and deciding how to respond to the results. For example, if the email open rate is lower than you anticipated for a given time, what improvements could you make to email subject lines to encourage more clicks from subscribers? 

Discover CRM with Coursera 

CRM software is a key tool for many businesses' customer service and sales departments. It typically helps increase customer satisfaction and retention. 

Coursera's online courses can be a great way to build CRM knowledge and skills and discover career opportunities. Check out these options from industry leaders, such as the Salesforce Sales Development Representative Professional Certificate and Coursera Project Network’s Introduction to CRM with HubSpot.