Understanding the 3 types of CRM systems – TechTarget
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The right customer relationship management software can help organizations communicate with customers and foster a healthy, long-lasting relationship.
However, before purchasing CRM software, an organization must understand the differences between the three main types — operational, analytical and collaborative — and how to determine which is the right choice.
A CRM system manages and analyzes customer data and interactions to improve customer service, aid in retention and drive sales growth. Over time, the number of tools and functions of a CRM system has expanded to cover every period in the customer lifecycle. But how does an organization know which of the three types of CRM system is right for it?
The three types of CRM systems include the following:
An operational CRM system is the most common type and covers the broadest range of functions. It blends all business processes, such as customer service, marketing and sales, into one within a company. Its primary goal is to help streamline business operations, centralize customer interactions and sales, marketing processes, and service and support efforts in one place. Further, it stores information on customers, leads and employees using a shared platform to better support existing and potential customers.
An operational CRM system captures customer details and uses them to provide service across the customer lifecycle, including marketing, sales and service automation.
An operational CRM can improve organizational efficiency leading to improved processes, internal cohesion and overall customer satisfaction. However, as with each type of CRM, it is dependent on proper data entry to achieve its full effect, which can be a time-consuming process — especially for small or mid-sized organizations.
Operational CRM systems are ideal for helping teams work better to understand customers through the capture and nurture of customer relationships and improve the perception of customers and sales for the company.
The primary goal of analytical CRM is to leverage customer data into trends and actionable insights the organization can use to improve the customer experience. Data from an analytical CRM can include customer preferences, channels, touchpoints, trends, forecasting and more.
Analytical CRM systems excel at helping organizations parse large amounts of data and develop strategies to develop new leads, increase customer retention and create efficiencies for the sales and marketing departments.
However, while analytical CRM systems can help understand a large amount of data, they can also be more technical and difficult to understand without dedicated staff. Additionally, the insights gleaned from the data are only as good as the data entered, and inconsistent entries can skew the results.
Analytical CRM systems are best for mid-size and large organizations that gather large amounts of data and want to distill that data into trends and insights.
Many analytical CRM systems exist, but two standout options include the following:
A collaborative CRM, also known as strategic CRM, enables different teams or functional areas in an organization to share customer data. The result is that everyone uses the same knowledge base about the customers to make decisions, creating a holistic approach to managing customer relationships. While operational CRM tools often focus on marketing and sales, collaborative CRM systems focus primarily on customer service.
A collaborative CRM system has two components: interaction and channel management.
This type of CRM system strives to improve the information shared between the sales, marketing and customer support departments. Because these teams work separately, a collaborative CRM tool can help break down those silos to address customer needs and manage customer relationships effectively.
However, given this system’s interdependent, collaborative nature, it’s essential to use it correctly. Otherwise, the connection between touchpoints could break down, and the customer experience will suffer.
Organizations that operate across multiple locations or work in siloed teams can use a collaborative CRM system to streamline how they gather customer information and communicate with them.
Top 4 CRM systems comparison
Part of: Guide to choosing a CRM system
Sales and marketing terms are like alphabet soup, and the different acronyms can get confusing. Find out the difference between three major platforms: CRM, CDP and DMP.
CRM platforms can boost CX with business insights if sales agents use them properly. Sales leaders should know the benefits and challenges of these platforms before purchasing.
To get the most out of a CRM system, organizations must decide whether an operational, analytical or collaborative CRM system is right for them.
Choosing the right CRM software can be daunting for organizations. Follow these five steps and best practices to ensure the search, adoption and deployment processes go smoothly.
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