What Is a CRM Database?

Attract customers, execute marketing campaigns and generate sales, the CRM database is the fuel that makes it run.

what is crm database

CRM stands for customer relationship management software. This software allows you to use location-based services and other geolocation, automate sales and marketing tasks, generate and score leads, segment contacts, and more.

With a CRM database, you keep track of pertinent data for all your contacts. For instance, you’d have their name as well as their basic contact information. This information can be online-based, such as a Skype username or an email address. You may also have their physical address and phone number.

You can review lead scores and determine where each lead came from (an ad, your website, a blog post, even social media) with a CRM database. If you recently reached out to a lead or contact, then this database can show you not only when that occurred, but what the topic of conversation was. If the lead engaged with your company brand in any way or went on your site, a CRM database will tell you.

You sometimes also have pertinent personal information in which to work with. The lead will have shared this themselves. From their interests, hobbies, and even whether they have children or pets, you can use this handy data to get them chatting with you more readily.

Not only will a CRM database warm your leads up to you faster, but you can convert those leads, make sales, and succeed in your marketing campaigns.

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Who Needs a CRM Database?

Now that you know more about a CRM customer database, you may wonder, what kinds of businesses should have one?

Any company that’s growing or anticipates experiencing growth should consider a customer relationship management database for their business.

Yes, that includes database software for small business. It’s better to have a means of organizing, managing, and marketing towards your contacts from the get-go than set one up later. This way, no potentially viable leads slip through the cracks that could have become valuable customers. You can also start your company with your best foot forward, optimizing your sales and marketing approaches with a database like this.

Mid-sized and large businesses should certainly never go without a database or some other form of CRM software. After all, the more leads you generate, the harder it becomes to keep track of them all. When you consider you also have a bountiful audience of customers in which to maintain, it can get overwhelming. With a CRM database, you can better manage your customers and leads alike.

There are only a few instances in which you may opt not to get database software for your company. Those are as follows:

  • If you don’t market and sell to business clients and customers, then your company can viably go without a CRM database.
  • If you sell limited edition products that will run out and not be restocked, then your customer base has an equally limited life. You don’t need to worry about bringing in new customers.
  • If your company has an everyday product that people will always need, then you too can skip having a CRM database. For instance, people will shop for toilet paper, toothpaste, and shampoo consistently.
  • If you don’t have a lot of customers and you don’t anticipate that changing anytime soon, then you may want to hold off on using CRM. You can track your customers and leads as is, so you’d spend money unnecessarily on a database. This can always change later, though.

What Advantages Can a CRM Database Offer Your Business?

Your company fits the bill for a CRM database, but you’re still not totally convinced. Why should you shell out the money for this software? Here are some benefits and advantages that should inspire you to try out your own database.

Increased Revenue

With more successful marketing campaigns and plentiful sales (more on this momentarily), your company sees more revenue. If you’re a startup or small business on the path to growth, then any bit of extra revenue can stabilize your bottom line. Bigger companies as well need money to keep their powerhouses chugging along.

Increased Revenue

More Sales

When your sales team reviews your CRM database, they can see the types of conversations they or other team members have had with the lead or customer. If a certain approach didn’t work, they can know that before repeating it again to no avail. Armed with personal talking points as well, the salesperson can get the lead or customer warmed up and ready to make a deal.

More Sales

Better Relationships with Your Customers

Customers prefer feeling like individuals rather than one of many. By tracking information of theirs like their shopping behavior, their hobbies, and their history with you, it shows you have an interest in each of your customers. That can go a long way towards boosting customer satisfaction and loyalty while improving the working relationship you have with these customers.

Better Relationships with Your Customers

More Efficiency and Productivity

An efficient, productive office gets more done. With a CRM database, your customer service, marketing, and sales teams can touch base and ensure they’re not doing the same thing at the same time. They can also collaborate, passing on relevant information from one team to another so everyone does the best job they can.

More Efficiency and Productivity

How to Choose a CRM Database

You’re finally ready to try CRM. With so many options out there, how do you choose the best database for your company? Take these factors into consideration.

Pricing

Most CRM services charge annually, but some do it monthly. Compare the prices for the top three to five CRM database brands you’re considering. Which one costs the most? Do keep in mind that you shouldn’t necessarily disqualify one software just because it’s pricier than the others. The cheapest option is not always better, especially because cheaper often means less features.

contact management in engagebay crm

Features

Yes, that’s right, you must also prioritize features. If your company requires advanced list management or analytics and your CRM database doesn’t offer it, then what? You either go without, which really isn’t an option, or you spend more money on yet another program. For a small business, the latter might put them under significant financial strain.

Make sure your software has the features you need before you buy it, then.

crm features

Learning Curve

While it may take some time to get the hang of a CRM database if you’ve never used such software before, you shouldn’t have major difficulties with it after a month or more. The smaller the learning curve, the better. A steep learning curve means it’s a product for experts and maybe not one you want right now.

learning curve

Integrations

You likely rely on other products, tools, and software daily to keep your business progressing. Will your CRM database integrate with those programs? If so, then you can connect everything together, syncing data and info as needed for a more seamless user experience. Without integrations, you might want to question if this is the right CRM software for you.

EngageBay Integrations

Scalability

Where will your company be in two to five years? How many more leads and customers will you have by then? The more contacts, the greater your CRM database needs will become. Can your software grow and accommodate those changing needs, or will you have to buy another CRM as your company expands? Ideally, you want a database with room for scalability.

task management in engagebay crm
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