While the majority of people in the world of business nowadays have an operable knowledge of what customer relationship software is and how it can help improve their business processes, most people still struggle with the difference between contact management software and client relationship management. In fact, a lot of people, even software vendors, think that these two refer to the same software.
In today’s article, we will take a closer look at some of the major differences between these two and by doing so help you make more informed decisions in the future when you’re trying to decide what the best option is.
Contact Management software
Contact management has nowadays become an umbrella term for gathering individual, client and vendor information, as well as tracking communication with them. Contact management software is usually relatively easy to implement and use and, in fact, many users describe it as the electronic Rolodex.
This kind of software is usually recommended for smaller businesses who don’t have a large customer base as it is more suited for focusing on individuals’ needs. Alternatively, some companies use it as a sort of introduction to CRM, since there are certain similarities in how the two can be operated.
So, what is contact management software actually used for? Typically this type of software system allows you to track the following:
Communication with clients and vendors (verbal and written communication included), essential contact information as well as the additional contact info (this includes the position of the company and associated companies), associated sales representative data (including orders, open quotes and the entire sales history info), and address data (which includes bill to and ship to addresses when they are needed).
Customer relationship management software
CRM software is typically much more complex and offers more advanced features than contact management software. CRM systems can require some time and effort before they are successfully implemented and your employees can use them properly.
Unlike contact management software, CRM is used for much more than just storing basic information. CRM is used to manage sales cycles and sales funnels, categorize clients and prospects and much more. In particular, CRM is useful for large companies who have long and complex cycles of sale which require a lot of continual customer communication.
Other features that CRM can provide but is not limited to include are: scheduling and organizing upcoming events, actions and meeting, moving prospects through the sales funnel, changing and managing lead statuses, a dashboard to help your team to keep track of their activities and duties, and client communication from within the system.
It is easy to understand why one might think that these two types of software systems are similar or even the same, but as you can clearly see, that is not the case. In reality, these two systems have major differences in application scope, client strategy, software application and business purpose.
If you want to choose the right solution, try to attain a deeper understanding of your business goals and requirements for those goals and make sure to visit /crm/web-based-contact-management-software for more info.