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Distinguishing Between Contact Management & Customer Relationship Management Systems

Distinguishing Between Contact Management & Customer Relationship Management Systems

To begin with, Contact Management refers to the function of storing, classifying and tracking information related to existing clients, potential customers and sales leads. Before, most companies used manual methods in managing their contact data. They used spreadsheets or address books in creating entries for individuals and entities they conduct business with.

Innovations in technology led to the creation of a sophisticated contact management system. Aside from being automated, the software allows users to store as many contacts as possible and gives authorized persons access to said data. However, some businesses prefer customized Customer Relationship Management platforms over the contact management app. CRM software can manage contacts with features that make it easier for companies to handle their relationships.

Which is More Useful?

Both systems are valuable although the customer relationship management crm system has more functionalities. These are two different tools but occasionally used synonymously because of their similarities. Regarding contact management, this process along with networking is considered essential to business development plans.

The main objective in contact management is customer retention as well as accommodating their needs through up-selling or cross-selling. Organizing and simplifying contact information is important. There has been an upgrade from the traditional spreadsheet to cloud-based data storage hubs. This is why contact management apps emerged.

Essentially, the contact management system is most effective if incorporated with the CRM software. You can handle interactions with potential clients by combining the two platforms. Contact management apps provide data storage in the cloud allowing users to spontaneously update information.

On the other hand, the customer relationship management crm system automates sales, marketing and service functions. CRM tools come with contact data management features making it easy for you to access the platform’s full potential.

For Startups and New Businesses

The contact management system is more for small firms or those in the process of planning or launching their business. It will help you identify loyal clients before upgrading to a CRM platform. This saves you funds on monthly software expenses, integrations and staff training. It is a cost-efficient solution while your enterprise is still on the early stages and experiencing birth pains.

Once you start progressing and realize a quantum leap in revenues, then you can consider moving on to a CRM app. Here are some points that can help you before going to the next stage:

  1. Number of loyal customers
  2. Employees who can efficiently perform data entry and analysis
  3. Need to document itemized information and interactions with clients
  4. Requirement for long and complicated sales processes
  5. Need for prompt and quick purchases
  6. Selling across a large geographical location
  7. Projected business growth for the short and medium-term

These factors will assist you in making an informed decision whether to order the contact management app or go for a customer relationship management crm system. Nonetheless, try the first option for the meantime if you have a few clients. This means segmentation of customers is not yet that difficult. The CRM will be ideal for doing business on a national or global scale. This is the time you will require advanced data to categorize customers enabling you to offer the best commodities or services on a bigger magnitude.

For startups and small or medium=size enterprises, it is important to purchase the best contact management tool. DataBox Solutions can assist you in this task.

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