Relationship management software, also referred to as CRM, is the single most common tool in sales organizations. For many companies, their relationship management software is a unifying anchor for multiple departments. For others, it’s a window into revenue projections and critical sales data that will help drive business decisions and strengthen their connections with customers.
So what can a relationship management system do for you? Let’s explore the functions, benefits, and value it brings to the organizations that use them.
What is Relationship Management Software?
Relationship management software is a powerhouse for growing your connections with your client base. Sales teams use the software to track leads, document conversations, and measure progress toward sales. Marketing teams rely on them to know how leads are dropping into the funnel so they can better direct their efforts and ad spend. And sales leaders can keep an eye on productivity and ensure a healthier sales organization.
All interactions are tracked and managed through the software platform. Rather than dealing with paper records, files, and sticky notes, the platform serves as a central database that all users can access.
The software can also automate a number of processes to make lighter work for its users, including reporting features, sales performance dashboards, emails, lead tracking, and analytics.
How it Works
In its most basic form, relationship management software the go-to tool for businesses to manage and analyze their relationships with customers and prospects. Here’s a look at how companies use its features to create a robust sales organization:
When you collect leads, either via your website form, social media, or landing page, you can funnel them directly into your relationship management software to begin the buyer journey. Leads can be qualified, scored, and distributed to the right salesperson for follow up.
Sales team members benefit by knowing where their best opportunities lie and keeping their sales funnel full. Marketing wins by seeing where leads are coming from so they can double down on their efforts. And management will get a better idea of their sales organization’s health and productivity.
CRM acts as a database to store leads and client information. When users interact with clients or leads, their activity is logged in the software. Users can pull up information to see client history, such as when they became a client, the client’s value to the company, the last interaction, and even the details of previous conversations so that users can deliver a personalized approach to their interactions.
As leads move through the funnel, relationship management software can measure each sales team member’s performance. At a glance, managers can see what salespeople are spending their time on, who’s closing deals, and how much revenue they’re generating.
CRM provides powerful reporting features that deliver data-driven insights into your sales organizations. Many systems offer predefined reports so that all you have to do is print them. Or, you can customize your own reports to gain the visibility you want.
Why Sales Teams Need It
CRM has proven to be a powerful tool in sales departments. On average, CRM delivers $8.71 for every $1 spent and can increase sales by up to 29%. It also gives sales productivity a boost of up to 34% and increases sales forecasting accuracy by 42%. Automation and data-driven insights give sales team members and leaders a clear snapshot of their company so they can make decisions based on facts, not hunches.
Surprisingly, about 20% of organizations still don’t know what relationship management software is and 40% are still using outdated methods like spreadsheets to manage client relations.
That’s about to change, given the rise in CRM solutions in recent years as well as the numerous studies that highlight its benefits. The potential alone is worth exploring, but the organizations that commit to using these tools are the ones that see the biggest sales growth.
Try Relationship Management Software for Free with LeadSquared!
Most sales organizations already use some form of relationship management software, but these solutions can be as varied as the company using them. Though similar in form and function, they’re not all created equal. It’s essential for companies to explore their options to find a software tool that provides the functionality they need to streamline and improve their sales organizations.
LeadSquared’s feature-rich CRM was designed to help you sell faster at a higher volume. From collecting and tracking leads to managing interactions and sales performance, our CRM helps your team know how to best allocate their time and effort every day. We created our solution to align with modern sales teams that want all the benefits of a CRM without the guesswork so you can start seeing results without delay.
Try it free for 15 days and see why no other solution can compare to the power and simplicity of LeadSquared!