Many software vendors use Contact Management systems and Customer Relationship Management (CRM) terms interchangeably, but there are differences between these two.
Although these are similar in concept but differentiate with their basic characteristics. But irrespective of the differences, contact management systems would remain an integral and most important part of CRM.
In this post, we will call out the differences and help you to evaluate software to make a better decision.
Contact Management Software:
Contact management software manages and tracks customer, suppliers and vendors information and keep records of all the communications.
Contact Management systems typically allow tracking:
- Address information, such as ship to and bill to addresses
- Main contact and additional contact information
- Sales representative information
- Open quotes, orders, returns and sales history information
- Verbal or Email communication with customers, suppliers and vendors
CRM software designed to manage more advanced functionality, such as sales, potential clients and lead generations and contacts, and also monitors all sales representative activities along with additional marketing functionalities.
Customer Relationship Management (CRM) systems perform below-mentioned activities:
- Manage relationships with prospects, customers and vendors by allowing users to schedule upcoming events, actions and meetings
- Monitor flow of prospect status through the sales funnel
- Create email lists of each prospect and customers
Since the difference between these awesome software has been explained, now, let us explore the 8 benefits of contact management systems:
- Long-lasting Customer Relationships: Since a contact management system tracks each action taken by your customers, it allows you to personalise your communication with the customers. Customers, in return, feel the human connection and tend to stay connected longer with the company’s products and services.
- Better Understanding of Customer Needs: With the help of this software, company’s keep a record of customer demography such as name, age, gender, email, industry, location, etc. It also tracks actions taken on emails – open and subscription rates, clicks, site visits through email links, follow-up actions on the site, etc. These records help to understand what customers are searching for, what they need, and what they don’t.
- Enhanced Data Management Opportunities: Contact management systems have almost no chances of human error because all communication information is tracked from the web forms and stored in the central database which can be referred by multiple users at the same time.
- Increased Productivity: Most of the activities involved in sales, such as data management and tracking status of the order, are automated. Thus, it reduces unnecessary human intervention for performing various customer, client or vendor related interaction activities, and increases productivity.
- Low Expenses: Automation helps reduction of manpower, and with that companies can reduce salary expenses. On top of that, there are multiple third-party SaaS Contact Management systems which can be used to reduce hardware and maintenance costs.
- Better Efficiency and Team Collaboration: Often, teams work in silos which never result in a good output from the organisation’s point of view. With the help of Contact management system and CRM, companies can sync different teams in real-time and increase transparency and efficiency.
- Feasibility of scheduling appointments: Contact management software provides options to auto-schedule appointments with the clients and leads to close deals. The appointments are created and shared with clients and the representatives while they are on the field so that they do not lose time to get the next target option. Many Contact management tools provide lead review screen or dashboards to send alert to Contact Managers and sales representatives on the follow-ups for the day.
- Better Insight and Data Analytics: Contact Management and CRM tools together keep track of:
- The number of customers
- Leads generated
- Performance of the team
- Actions are taken for various business activities
- Deadlines of each task
- Scheduled and missed appointments
Hence, Contact Management and CRM software when integrated together, provide better reporting and allow various analysis opportunities to identify issues and fix those as quickly as possible.
These benefits of contact management tools motivate companies to purchase better contact management systems which increase their efficiency, productivity, customer satisfaction and communication. If you want to know which contact management software should you go for, then check out this post which can help you get one.