Key Components of CRM Process Every Clever System Should Have

Updated Jan 16, 2023.
Components of Customer Relationship Management

Many business owners have read so many articles on the best CRM tools in the market. Yet, only a few know about the key components that make up an effective CRM system.

Building a CRM without its key components is like building a company with no business strategy. It won’t work! You will struggle to keep customers satisfied throughout the customer lifecycle.

Components of Customer Relationship Management System

The components of CRM are beyond sales, marketing, and customer service. There are many other components that improve your sales and marketing efforts and increase customer loyalty. Did you know that Human Relationship Management (HRM) is crucial for CRM success?

This article covers 14 components of an effective Customer Relationship Management (CRM) system:

  • Sales Force Automation
  • Human Resource Management
  • Lead Management
  • Customer Service
  • Marketing Automation
  • Workflow Automation
  • Business Reporting
  • Analytics
  • Contact Management
  • Deal Management
  • Email Management
  • Task Management
  • Sales Pipeline Management
  • Customization

Let’s get started.

1. Sales Force Automation. Process More Customer Data

Sales force automation (SFA) is an essential component of CRM. Imagine a solution that helps you automate your sales process. One that helps you achieve your sales goals.

Sales are vital for every business. There are different software tools for sales forecasting, processing, and recording. SFA combines all these features and helps you reduce business costs.

The benefits of sales force automation as a CRM component include:

  • Increased Revenue: Sales force automation helps organizations find more revenue-generating opportunities. Since your sales processes run 24/7, you will close more sales and increase revenue.
  • Automated Sales Cycle: SFA automates your sales cycle from lead prospecting to closing sales.
  • Increased Customer Satisfaction: Many businesses struggle with getting their customer service processes right. SFA improves your sales processes, which increases customer loyalty and customer value.

Features of Sales Force Automation:

  • Sales Automation
  • Marketing Automation
  • Customer and Deals Management
  • Insights Management
  • Lead Management
  • Account Management
  • Opportunity Management
  • Email Management
  • Reporting
Source: Rolustech

2. Human Resource Management (HRM). Organize the Right Team

Are you wondering why HRM is a CRM component? CRM and HRM are different concepts. The first focuses on customers, while the second focuses on employees. But you can’t develop a CRM strategy without the people in mind.

Infrastructure is not the most critical resource of a company. It is people. Human resources are vital to a company’s success.

Involving HR representatives in your CRM system helps change the company’s culture to a more customer-focused one. For CRM to work, the organization has to adopt a customer-oriented culture in its day-to-day operations.

3. Lead Management. Convert Potential Customers

Lead management involves attracting, managing, and converting potential sales leads into paying customers.

The main goal of lead management is to turn a potential customer into a loyal customer. Many businesses have mastered the art of customer acquisition. But, very few know how to effectively manage them until they become active customers.

Lead management is like adopting and raising a child until full maturity. If you can get a constant inflow of new customers and keep existing customers happy, your revenue will grow steadily.

Every business profits from lead management. But, the major beneficiaries are sales industries, marketing firms, and customer executive centers.

Running targeted marketing campaigns helps you gain the right leads.

An effective lead management campaign involves:

  • Building landing pages
  • Designing customized forms
  • Creating mailing lists

Sales representatives use CRM data to discover buying patterns of potential customers. Any CRM solution that does not offer lead management features should be avoided.

CRM solution
Source: Markempa

Stages of Lead Management:

  • Lead Capturing
  • Lead Tracking
  • Lead Scoring
  • Lead Distribution
  • Lead Nurturing

4. Customer Service. Improve Customer Loyalty and Satisfaction

Loyal customers are great assets to every company. Customer service is a key CRM component that improves customer relationships. Score your customer service efforts by measuring how many customers remain loyal.

Every company needs skilled customer service representatives that provide superior customer service.

CRM provides customer service reps with information about customer preferences. An efficient customer service unit uses this information to deliver timely help to customers. It uses customer information about purchase patterns and interests for better interactions.

Customer service improves customer retention. Customers are more likely to remain loyal if they have a positive customer experience.

5. Marketing Automation. Automate Your Marketing Tasks

No company can grow without marketing. Marketing departments use tools to generate brand awareness, make sales, and grow revenue. A/B testing and marketing automation software can help you create the best marketing campaigns.

The goal of marketing automation in CRM is to automate repetitive tasks your team faces in the customer lifecycle.

Some of these marketing tasks include:

  • List management
  • Document management
  • Activity management
  • Call management
  • Campaign management
  • Mass emails
  • Reporting

You don’t have to use different software for marketing and customer relationships. The top CRM tools have marketing CRM systems integrated into them.

Also, If your team is using a marketing automation tool, you don’t have to cancel it. You can integrate it into a CRM tool of choice.

Integrating CRM and marketing automation software has many benefits:

  • Boosts Your Marketing Process: Marketing automation in CRM makes your marketing processes effective. Your teams get enough information about your potential and existing customers to drive more sales.
  • Earns a Higher Return on Investment (ROI): Optimizing your sales and marketing processes helps you generate more revenue for your business.
  • Unifies Your Data: Data is crucial for building long-lasting customer relationships. CRM software helps you unify your sales and marketing data in one customer base.
  • Provides Consistent and Personalized Messaging: Combining CRM and marketing automation helps you create consistent messaging for your campaigns. You can create marketing materials and set sales guidelines to unify your message.
Why to use CRM for Marketing
Source: Semrush

6. Workflow Automation. Do Not Spend Time on Menial Tasks

Effective Customer Relationship Management is only possible when vital components function together. When implementing your CRM, you cannot leave out workflow automation.

Workflow automation organizes the CRM process and helps reduce costs in CRM implementations. It prevents situations where you assign different individuals the same tasks. Many organizations are spending productivity hours on repetitive workflows.

You need the right long-term CRM technology to carry out workflow automation. CRM software tools help you automate your workflows to save time and productive efforts.

7. Business Reporting. Are You Doing It Right?

Business reporting is an essential part of your day-to-day business operations. Reports help businesses have clear insight and understanding of their operations. Small and large-scale organizations use reports to improve their processes.

Vital CRM reports include:

  • Customer Service Report
  • Marketing Automation Report
  • Sales Pipeline Analysis Report
  • Sales Performance Report
  • Sales or Revenue Forecast Report
  • Sales Activity Report
  • Lead Source Analysis Report

Business reports help business executives understand the state of an organization. They help executives and employees gain more insights into their business performance.

The best CRM tools provide detailed reports of business activities for users. You can export business reports for external use, search for historical data, and compare business reports.

8. Analytics. Better Understand Customer Interactions and Experience

Analytics is a key CRM component that provides an in-depth study of your customer data. Collecting customer data is meaningless unless you process it and take actionable steps. The goal of analytics in CRM is to improve customer retention and satisfaction.

Analytical CRM systems use different techniques to examine your acquired customer data. Business managers use analytics to make informed customer-related and business decisions.

Techniques used to analyze customer data include:

  • Data mining
  • Correlation
  • Pattern recognition

You can represent the acquired data in your CRM database in histograms, charts, figures, and diagrams.

Sales and marketing teams compare past and current data to understand market trends and discover the best ways to manage customer interactions and improve customer relationships.

9. Contact Management. Manage Larger Customer Bases

Contact management organizes business contacts from different channels in one place. This CRM component handles recording and managing your customer information.

Do you need real-time information about the last time your team reached a customer? The purpose of the engagement? Contact management in CRM helps you receive this information.

You get detailed insights into the most appropriate time to reach your customers. Proper management of your customer base is easy. A good CRM software can effectively manage contacts, social media platforms, and email interactions.

Most Requested CRM Software Features
Source: 99Firms

10. Deal Management. Close More Sales Faster

Many businesses lose deals because of a lack of preparation and an effective alert system. Deal management in CRM provides you with a clear picture of your previous, present, and future deals.

The beautiful thing about deal management for business owners is its performance reports. You can analyze your deal performance to gain insight into why your deals succeeded or failed. When trying to convince customers, these insights are helpful.

Deal management allows you to divide your deals into various categories based on their stage in your sales pipeline. A CRM system can predict the likelihood of your organization getting any deal. It offers recommendations to improve your chances of winning.

11. Email Management in Customer Relationship Management

Email management is vital to every organization's marketing campaign. A good CRM system offers vital tools to effectively control and manage your business emails.

Any CRM that does not offer email management features should be avoided. You can integrate your email marketing tools into your CRM account to effectively manage your emails.

CRM software saves the time and energy you would have spent navigating between tabs to open your email. Instead, you can access every email once you integrate your email provider into your CRM system.

An ideal email management system prioritizes your emails and analyzes every response. It sends follow-ups each time your prospect or lead takes action.

12. Task Management in Customer Relationship Management

Task management is a vital CRM component that organizes your business processes and workflows. Organizations use this feature to effectively manage tasks and encourage better team collaboration.

Managers use the task management feature to assign tasks to specific team members directly from the CRM platform. You can view the various tasks assigned and manage your team’s workload.

Task management allows you to structure your activities, so your sales teams can prioritize important deals. Your business saves time and labor on menial work that contributes little to the business objective.

13. Sales Pipeline Management in Customer Relationship Management

A good CRM system helps businesses effectively manage their sales cycle. Every sales cycle starts from the prospective lead stage and ends at the conversion stage.

Sales pipeline management is a vital component of every CRM system. With an effective CRM, your company can capture various leads across all communication channels.

After capturing these leads, the sales pipeline feature recognizes the most qualified leads and finds sales opportunities.

You can properly manage leads across various sales pipeline stages:

  • Qualification stage
  • Deal stage
  • Post-sale stage

14. Customization. Make the Most out of Your CRM System

The customization component enables you to design your CRM systems based on your organization's preference. You can customize your CRM according to certain factors, such as custom layouts, functions, modules, fields, and buttons.

Businesses can build a customized CRM system that fits all unique organizational needs and preferences from start to finish. An ideal CRM system should be easily customizable to suit the preferences of your sales team.

Was This Article Helpful?

Rated 5.0 out of 5
5.0 out of 5 stars (based on 3 reviews)
Very good0%

Anastasia Belyh

Editor at FounderJar

Anastasia has been a professional blogger and researcher since 2014. She loves to perform in-depth software reviews to help software buyers make informed decisions when choosing project management software, CRM tools, website builders, and everything around growing a startup business.

Anastasia worked in management consulting and tech startups, so she has lots of experience in helping professionals choosing the right business software.