Understanding Customer Relationship Management

Managing sales data and processes can be simplified using today´s software solutions. These products automate nearly all of the tasks that salespeople and their support staffs once performed manually. As a category, these products are generally referred to as customer relationship management (CRM) solutions.

CRM applications started as simple contact-management software that salespeople ran on their PCs. Then vendors began to develop products that automated a larger number of processes while tying together all of the sales data across the organization into one comprehensive source.

Though the features of a CRM solution can vary from product to product, there are a few industry-standard functions:

Contact manager. A CRM solution must have a powerful yet easy-to-use contact manager so you can track sales leads and have instant access to relevant information about your clients.

Marketing encyclopedia. This feature includes a base of information about different vertical industries, competitors and products. It´s a valuable tool that cuts research time and keeps you informed about your clients´ needs.

Forecasting module. The forecasting module lets you analyze where and when leads are being generated. This information helps you determine how to spend advertising and marketing budgets in the future.

When looking for a CRM solution, these features aren´t necessarily standard but you may find them helpful:

Localization support. This is an excellent feature if you have international customers. A CRM product with localization will automatically convert data, such as currency information, to its foreign equivalent. Add a rate-of-exchange feed and you can get automatic and up-to-date exchange rates for world currency.

Support for mobile devices. Not all CRM software includes support for personal digital assistants, but if your sales force uses Palm organizers or Windows CE devices and needs access to CRM modules, look for software that offers connectivity options for popular handhelds.

A Web-centric approach. Like many other applications, CRM solutions are becoming Web based. This means they are built entirely on Web technologies, and you can access them through a Web browser. These applications are generally more affordable, easier to implement and easier to maintain than their client-server counterparts.