CRM databases: Why you need one and how they can help your business
What is a CRM database?
A CRM (customer relationship management) database is a powerful tool for managing your company's interactions with current and potential customers. A CRM gathers, sorts and analyses an extensive range of customer data, distilling it into actionable insights for your business.
Whether it's a conversation on social media, an email exchange or a customer service call, your CRM database can record and store every interaction. With a CRM, you're not just looking at names and numbers but uncovering the patterns and behaviours that define your customer relationships.
CRM databases provide a crucial competitive edge in a digital age where data is the new currency. They simplify decision-making, boost customer service and improve overall business efficiency. Think of it as a dedicated digital assistant that tracks all your customer interactions, enabling you to focus on what truly matters: building and nurturing customer relationships.
What is the purpose of a CRM database?
People and sales management
A CRM database is the driving force of your sales team, streamlining the sales process by tracking leads, managing follow-ups and simplifying sales forecasting. It's like a sales coach, helping you turn every lead into a potential sale, maximise opportunities and plan for future growth.
Customer and service management
Superior customer service is no longer a luxury but a requirement for any successful business. CRM databases make sure you exceed customer expectations. They provide a comprehensive view of each customer's history, enabling personalised service, prompt problem resolution and a customer experience that feels uniquely tailored. With a CRM, your business doesn’t respond to customer needs — you anticipate them.
Marketing management and automation
CRM databases track marketing campaign performance and automate mundane tasks. These capabilities cut out a lot of admin work for marketers, freeing them up to focus on crafting compelling strategies that drive business growth.
Reporting and insights generation
Data without interpretation is like having a map with no compass — it might show you everything, but you won’t know where to go. CRM databases provide powerful analytics features that translate raw data into actionable insights. As a result, you can better understand what makes your customers tick, guiding better decision-making and strategy formation.
The 3 types of CRM databases
Analytical
Analytical CRM databases dissect and interpret customer data to unearth patterns and trends. You can discover the "why" behind your customers' behaviour by leveraging these insights for strategic decision-making. Use CRMs for predictive analysis, customer segmentation and behaviour modelling, so you can stay ahead of customer needs and market changes.
Businesses can use an analytical CRM system’s trend analysis and forecasting abilities to stay one step ahead. Whether it's anticipating customer behaviour, segmenting customers for targeted marketing campaigns or adjusting strategies based on data-driven insights, analytical CRM databases can drive a competitive advantage.
Collaborative
Collaborative CRM databases are the peacekeepers of your business ecosystem, fostering information sharing across departments and teams. They act as a conduit between organisational functions, promoting a unified view of customer information that can lead to improved customer service, reduced duplication of effort and better coordination of marketing and sales efforts.
Collaborative CRMs are the ideal solution for businesses fostering a team-based culture. These systems can dramatically improve interdepartmental communication and make sure that every team member, from sales to customer support, has visibility into all customer interactions. Collaborative CRMs are also perfect for companies with multiple customer touchpoints, as they ensure a consistent, cohesive customer experience.
Operational
Operational CRM databases drive your business, enhancing efficiency by streamlining operational tasks. They focus on sales process automation, marketing automation and service management. These CRMs are essential for companies aiming to eliminate manual tasks, improve efficiency and make sure their operations run smoothly.
Operational CRM databases are a good fit for businesses with high volumes of customer interactions. Whether automating marketing email sequences, managing sales pipelines or tracking customer service requests, these systems ensure your business operations maintain a steady, efficient rhythm.
Key benefits of CRM databases
Efficiency through organisation and automation
CRM databases are powerful tools for enhancing organisational efficiency. They standardise your sales processes, organising customer data and automating routine tasks. This leaves your team more time to focus on delivering quality customer experiences and driving business growth.
Enhanced customer experience personalisation
Personalisation is the key to winning and retaining customers in today's competitive business landscape. CRM databases empower businesses to create personalised experiences by providing a 360-degree view of each customer. With this level of insight, you can craft targeted marketing messages, deliver tailored service and build stronger relationships with your customers.
Streamlined company-wide collaboration
CRM databases store customer information and facilitate better communication within your team. By centralising customer data and making it accessible across your organisation, CRM databases enable teams to work together more effectively, breaking down silos and fostering a culture of collaboration.
Clear sales pipeline visualisation
Visualising your sales pipeline helps you make informed decisions about resource allocation, sales strategies and demand forecasting. CRM databases provide a clear, up-to-date view of your sales pipeline, making it easy to identify opportunities and challenges.
Effective lead quality filtering
Using a CRM database to track and analyse data, your team can easily distinguish between hot and cold leads. You can then focus your sales efforts on the prospects most likely to convert, enhancing your sales efficiency and ultimately driving business growth.
Centralised company data repository
Think of your CRM database as the heart of your business, pumping vital information to every part of your organisation. CRM databases serve as a centralised repository for all your company's data. Having a single source simplifies data access and analysis and gives you a comprehensive view of your business, customers and market trends.
Insightful data analytics
CRM databases include powerful analytics tools, turning raw data into actionable insights. With this wealth of information, your team can make smarter, data-driven decisions.
Improved customer retention
Happy customers are loyal customers. CRM databases support improved customer retention by enabling better service and personalised experiences. With comprehensive customer histories and preferences, businesses can anticipate customer needs, resolve issues promptly and foster lasting relationships.
Best practices to get the most out of your CRM databases
Choose your CRM database wisely
Picking a CRM database is an investment in your company's future. Consider your current needs as well as your potential growth. Scalability, ease of use, integration capabilities and cost should all factor into your decision. The right CRM system can boost your productivity, enhance customer relationships and drive business growth, so it's worth finding the perfect fit.
Set CRM database goals
Set goals to measure the success of your CRM implementation. From improving sales efficiency to enhancing customer service, define clear, measurable goals to ensure your CRM aligns with your business objectives.
Thoroughly plan CRM implementation
A well-executed CRM implementation can accelerate user adoption and increase the system's return on investment. Consider factors like how you’ll integrate your new CRM database with existing systems, migrate data and train users. A detailed implementation plan reduces disruptions and sets the foundation for a successful CRM deployment.
Adapt your CRM to your needs
Every business is unique, and your CRM should reflect that. Customise your CRM database to fit your business processes and needs. Tailoring the CRM experience ensures the system is intuitive for your team and aligns with your company's workflows.
Use CRM automation strategically
While automation can save time and improve efficiency, paying attention to the value of the human touch in customer interactions is essential. Use CRM automation strategically to handle routine tasks, but make sure your team is interacting with customers who need additional support.
Train CRM users effectively
Like any tool, a CRM database is only as effective as the person using it. An untrained team can only partially leverage a CRM system. Provide thorough training and ongoing support to help users get the most from the CRM database. The more comfortable your team is with the system, the more effectively they can use it to drive sales, improve service and support business growth.
Use reports and analytics to make improvements
The data in your CRM database is a treasure trove of insights. Regularly review these insights to inform business decisions, refine strategies and spot opportunities for improvement. With proactive analytics, your CRM becomes a powerful tool for continuous improvement.
Review and update your CRM regularly
A CRM system isn't a set-it-and-forget-it tool. Your CRM should grow with you, adapting to new processes, customer demands and objectives. Regular reviews and adjustments will ensure your CRM aligns with your evolving needs.
Get the most from your CRM database with MYOB
As your business grows and scales, the benefits of CRM software become extremely clear. However, when your CRM database is fully integrated into your broader business management platform, you can get even better results for your business.
MYOB is a business management platform that addresses the six core workflows that any business may need to handle: customers, suppliers, projects, employees, finance, accounting and tax. Cloud-based, you only pay for the software you need, but can add on capabilities across all workflows as your business matures and your needs become more complex.
Try MYOB’s Tall Emu – free for 14 days! You can also integrate a range of third-party applications with your business management platform and get the tech stack you want.
At MYOB, we’ve got you covered.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.