Customer relationship management applications make it easier for businesses to track interactions with customers and gain more sales. Lead tracking, sales quotation management, and contact management are important components of a CRM system. But a full-fledged CRM system can do much more than collect customer records in a database.

Essential Features

The contact database is the key component of any CRM system, no matter how rudimentary. It should allow you to enter and maintain information about customers and prospects, such as name, address, telephone number, and e-mail address.

If you sell to larger customers that typically have several contacts, look for the ability to manage a group of related contacts for one customer. This will allow you to quickly change information for all related contacts when the customer’s address or other details change.

Reporting and analytic capabilities show wide variation among CRM applications. At a minimum, look for the ability to generate standardized reports that list customer and prospect contact information and sales lead opportunities organized by customer representative.

Another important tool is a report writer that permits you to design your own CRM reports. Most CRM solutions provide a report writer, but it may not be that easy to use unless you’re a techno wizard. If your front office staff has to contact your IT department every time they need a new report, you haven’t found software that improves your operations. Try creating a custom report or two when you evaluate the software to check out its ease of use.