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According to CRM.org, 97% of companies that use customer relationship management (CRM) platforms met or exceeded their sales goals in the past year. Only 3% fell short.
How can you make sure you’re in the 97%? The key is choosing a CRM platform with features that will give you the most bang for your buck and help you build a true omnichannel presence.
Having advised numerous startups through critical growth phases, I’ve seen firsthand how the right CRM implementation can be the difference between scattered customer interactions and truly transformative relationship building.
By asking the right questions and comparing a CRM’s capabilities to your list of must-have features, you can find the ideal platform for your business.
Related: These 4 Quick Wins Can Boost Your Customer Count and Revenue
CRM: What is it good for?
A quick search of CRM software will inundate you with lists of features, product demo opportunities and reasons why every solution is “the best.” It’s easy to get lost in a sea of options and features. While knowing what features will deliver the most value for your business is essential, you should first consider what a CRM is used for.
Customer relationship management platforms can serve two core functions for your business:
Creating an internal sales pipeline
A CRM’s ability to track prospects through the sales pipeline is highly valuable.
Your platform will provide a clear view of where each prospect is in their journey, enabling you to monitor prospects from initial contact to conversion and beyond. This visibility allows your sales team to prioritize outreach efforts and allocate resources to the most promising prospects.
For instance, in my work as a member of sales teams we would monitor the pipeline with a CRM and discover bottlenecks that added friction to the customer journey. Similarly, you can identify top-performing channels and underperforming outreach mediums. Once you know which channels your audience prefers, you can restructure your marketing strategy based on their needs.
Related: Buying Prospect Data Seems Like an Easy Hack for Getting More Customers. But Is It the Right Move?
Maintaining customer relationships
Whether you’re focused on building your local presence or need to connect with consumers at scale, forming authentic relationships is key to your success. A CRM is instrumental in nurturing existing customer connections. It stores detailed information about customer interactions, preferences and purchase history.
Use this data to personalize communications and foster loyalty. Staying connected with existing customers encourages repeat business and opens the door for referrals.
6 must-have features you need in a CRM platform
No matter which CRM solution you end up going with, it’s imperative that it offers the following features:
1. Financial tracking
Uncertainty seems to be the only economic constant these days. With that in mind, you have to make every dollar count when creating your marketing budget. A CRM with financial tracking tools will help you get the most out of every marketing dollar.
Financial tracking tools also shed light on your sales cycles. This feature is particularly useful if your business has long sales cycles or expensive sales processes. You can use these analytics insights to determine whether the cost of an acquisition is worth the potential revenue.
In my experience, implementing financial tracking has enabled clients to identify high-cost, low-return strategies and pivot to more profitable approaches.
2. AI
CRMs with AI-powered tools help you avoid wasting your marketing dollars by providing actionable insights. Artificial intelligence boasts predictive capabilities, which forecast customer behavior and sales trends. This foresight makes it possible to proactively address customer needs and optimize sales strategies.
For instance, AI can analyze past customer interactions to predict future purchasing preferences. You can use this information to target audience segments with personalized marketing content that speaks to their product preferences and pain points.
Franchise Brokers Association (FBA) achieved astounding results after integrating AI into its marketing processes. FBA improved lead gen by 216%, ramped up content production by 250% and boosted revenue by 63% using AI tools.
Related: The Marketer’s Playbook for Retaining Customers and Bringing in New Ones — Even During a Recession
3. Multichannel communication tracking
Omnichannel marketing is an underappreciated strategy that produces powerful outcomes. A CRM that consolidates all of your marketing channels can provide a unified view of customer engagement. You can create intertwined journeys that span email, SMS, social media and more.
When working with clients to improve their reach and lead-generation capabilities, addressing multi-channel communications is always one of my top priorities. I’ve found that implementing multi-channel tracking reduces response times and improves customer satisfaction.
4. Automated workflows
Think of all the times your team has gotten bogged down with tedious manual work. Workflow automation can handle tasks like follow-up emails and data entry, giving your staff more time to focus on dynamic work. Automating redundant tasks also helps keep your team from dropping the ball when nurturing leads and following up with customers.
For instance, a leading CRM can automatically add appointments to team members’ calendars. Your platform can also send automated emails to remind employees and their prospective clients of upcoming meetings. The result is fewer missed opportunities and better responsiveness.
5. Lead tracking and modeling
A customer relationship management platform with lead-tracking capabilities visualizes the sales process. You can track every phase of the customer journey and identify which leads are ready to make a purchase.
Top CRMs also include modeling tools, which allow you to assess the quality and potential of prospects. They can also help you capitalize on seasonality and other cyclical trends.
I’ve found that chasing the wrong leads can derail a sales team’s momentum and increase the risk of missed productivity goals. I encourage my clients to adopt lead modeling so they can take a more focused approach to lead nurturing and close more deals.
Related: 7 Ways to Know You’re Sending Marketing Emails to People Who Might Read Them
6. Serious security
Data privacy has become a major issue among consumers and legislators. Your business is responsible for collecting peoples’ data ethically. It’s also responsible for protecting any information it collects and stores.
Customer relationship management platforms ingest a huge volume of customer data. This makes them prime targets for bad actors looking to steal sensitive information.
As such, choosing a CRM that complies with stringent security standards is non-negotiable. You need a platform that adheres to provisions like the GDPR or California Consumer Privacy Act. Features like encryption, audit logs and two-factor authentication are essential for maintaining customer trust and shielding your business from liability.
Make it a point to select a CRM with robust security, even if you don’t operate in a market that’s subject to strict data protection. Several states have already adopted acts similar to the CCPA, and many of them model their regulations after the GDPR.
Being proactive about data security and public privacy will help your business avoid compliance headaches down the road.
Is it time to level up your business with a CRM?
Investing in a CRM with these advanced features can significantly enhance your customer relationship management capabilities.
Prioritize functionalities like financial tracking, AI integration and multichannel communication to achieve a strong ROI while promoting people’s trust. The right CRM could just be the growth catalyst that takes your business to the next level.
