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As the market for Customer Relationship Management (CRM) continues to grow and become more competitive, there have been new technological developments. A business must be able to share the right information in a timely matter in order to get their products and services out there for the consumer. In order to seize every opportunity to get their products to the consumers, its imperative for businesses to have the latest Customer Relationship Management software. 

With CRM software, a business will have an understanding of the customers’ need and behavior to give quality service. This builds a strong and profitable relationship between the business and its customers. There are three different types of CRM software:


The first type of CRM software is operational. Operational CRM streamlines the business process of an organization by focusing on automation and improving customer-facing and customer touching business processes. The main points are Sales automation, Marketing automation, and Service automation in order to generate leads, convert them into contacts, gather the required details, and give customer support.

In Operational CRM, Sales Force Automation (SFA) helps a business automate the sales process from lead generation to closing sale. This will set up the business’s standards to bring in new customers and deal with existing customers. Marketing Automation assists in the marketing process by automating and measuring marketing tasks to increase sales and earn revenue faster. Service Automation in Operational CRM automates the service process to give customers the best service.


Analytical CRM takes a systematic approach to analyze customer data and interactions to improve various business processes. Its main focuses are on Sales, Marketing and Service. This approach’s purpose is to gather customer information from various channels in order to understand customer’s behaviors, wants, and buying patterns. This allows a business to have a better understanding of their consumers and provide better customer service. Most importantly, Analytical CRM allows businesses to develop better marketing strategies and campaign management.

By using Analytical CRM, businesses have the potential to know what customers are willing to but even before the product or service launches. This leads to higher lead conversation rate, better customer service, greater market analysis, and most im[portantly an increase in customer loyalty.


Sometimes known as Strategic CRM, Collaborative CRM allows a business to share customers’ information among various business units such as the sales team, marketing team, technical and support team. Instead of each business unit working as an independent group, the groups are united. This greatly improves customer service and gain more customer loyalty. In order to have a successful collaborative strategy, it’s import for all business units to understand the business goal, identify stakeholders, find the right technology, and measure the effectiveness of the strategy. 

With the use of Collaborative CRM, a business is able to maximize profitability, improve customer satisfaction, and increase customer loyalty. Companies and organizations should be encouraged to use whichever of the three types of CRM software as a vital tool in their business.