For those unfamiliar with the basic principles of what a CRM system is may underestimate its importance for a new business. However, in the modern business environment, CRM software can be the difference maker between being a profitable business and the one that’s struggling. By understanding the CRM system definition, you can figure out what advantages it can give to your specific business.

The number of tasks that a CRM system can complete is vast, however in this article, we will outline the main duties a CRM solution takes upon itself streamlining the workflow in your organization. By understanding what it can be used for, perhaps you’ll be able to envision it working in your business handling day-to-day tasks.

What is CRM?

A simplified CRM system definition is that it’s a tool which organizes customer data and allows for improved relations with customers.

Nowadays there is an overwhelming amount of information that can be acquired on every single customer. Accurately sorting, organizing and utilizing the information can be too much to be completed manually. A CRM system handles the automation of the core processes, thus allowing to focus on the tasks that are really require human intervention.

How much does CRM cost?

You might be worried that the cost of a CRM software will be too high. Using anything that requires an upfront investment for the first time can be scary. That’s especially true if the business is still brand new and any investment has to be strategic due to a limited budget.

The good news is that CRM software can be the best investment you make. The return on investment (ROI) is going to be significant rather soon. Different CRM software vendors charge different prices, therefore, you’ll need to select the one that matches your budget.

Collection of customer data

One of the most important roles of CRM solution is the collection of data. No CRM system definition article would be complete without mentioning how customer data is collected and stored. Intelligent systems can collect data via open sources or gather data with the help of different registration forms, surveys, etc.

Collecting information about your customers is important as it gives you the full view on your clients when it comes to formulation of a marketing strategy. The more you know about your customer, the better is your ability to accurately market the products they need. Targeted marketing can make the most of a limited marketing budget.


Organization of customer data

Large volumes of collected customer data is of no use if it cannot be categorized and sorted. Effectively organized data allows to have all the important information right at hand. Consequently, targeted marketing campaigns can be run to increase the response rate.

For example, if you send a newsletter that is meant to sell a voucher to a particular SPA, then it makes sense to target customers living in a close proximity to the SPA. Additionally, when personalized offers are released, customers surely appreciate the personal approach. The best part is that marketing activities can be automated with a CRM system requiring very little work on the part of your employees, but remain personalized.

Market trends

One of the most powerful aspects of CRM software is allowing you to figure out what the market trends are. This means you can be the first company on the market to offer the next line of products that are going to be fashionable, practical and highly requested by the average target customer.

Market trend analysis is done by collecting data and thorough analysis of the information. This benefit alone is worth making the investment into a CRM solution like, for example, bpm’online.

Strategy is important

A CRM software doesn’t do all the work for you. A strategy must be formulated before you invest in a CRM solution. The software is just a tool to help you execute the strategy to achieve your goals faster. Understanding this will set the right expectations when you decide to invest in a CRM platform.


You might have learnt from the CRM system definition that such software brings a lot to the table. For any business, it has the power to improve the efficiency of customer relations and increase the return on each dollar spent.

Software solutions like bpm’online can help a business increase the rate of growth whilst at the same time delivering a personalized service to each customer.


The CRM system definition can be described as software which improves customer relationship management.