5 Types of CRM Your Business Might Need In 2023

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      CRM General

      5 Types of CRM Your Business Might Need In 2023

      CRM General
      9' read
      9' read

      Choosing the right type of CRM for your business needs is crucial in the following article we are going to explore some of the those types and how they can support your business in the long-term
      Keep reading to find out the type of CRM you need for your bossiness.

      A CRM is an online tool that helps businesses of any size — from small businesses to well-established corporations run more efficiently and effectively.

      The best CRM software can be used to manage customer lifecycle — find new customers, sync up with past customers, manage leads, view social media, and more. The software itself plays a major role in how your business runs by helping you track key aspects of it.

      However, not all CRMs are created equal and some may work better for your company than others.


      CRM tools can be operational or analytical or collaborative, etc. depending on the business needs, but generally, they encompass telephony, email, and marketing automation systems.

      At a fundamental level, there are five different types of CRM software:

      • Operational CRM
      • Analytical CRM
      • Collaborative CRM
      • Strategic CRM
      • Campaign Management CRM

      This article gives an overview of the different types of CRM software available, explains which type is ideal for the business, and describes what each system encompasses.

      1. Operational CRM

      Operational CRM systems comprise tools that focus on facilitating customer interactions by supporting the sales, marketing, and service processes.

      It is designed to enhance routine business operations and store all the data against customer touchpoints.

      With CRM type, you can handle tasks more efficiently since it provides service automation.


      Operational CRM has the following aspects:

      Automated Communication — You can create and manage communication with multiple contacts via a centralized interface quickly and efficiently.

      HubSpot, for instance, helps in a frictionless sales process by automatically logging emails sent or calls made and presenting it in the timeline view.


      • Self-service Management — Your customers can resolve their issues by accessing the knowledge base instead of requiring service assistance.
      • Scheduling — It allows you to integrate the CRM with your company’s app and schedule future tasks for execution.
      • Cross-team Collaboration — Your teams with different skills collaborate to accomplish customer management — the primary goal.
      • Performance Tracking — It allows you to gain insight into your customers with the help of data gained by different sales reps on each customer.


      • Data Analysis — These analytics help you in streamlining and facilitating appropriate business decisions.
      • Lead Sorting — Lead sorting or lead management allows you to filter and grade prospects to calculate their likelihood of becoming customers.

      Operational CRM assists:


      Lead generation is the primary aim of sales automation. You can automate the entire sales cycle enabling you to identify new prospects, make sales projections, track customer interactions, and manage data.

      This further helps in determining the correct leads which are then worked upon to turn into loyal customers.


      Marketing automation enables you to automate and evaluate marketing tasks to enhance sales growth. It allows you to leverage customer-specific data to create personalized sales campaigns.

      With campaign management, you can design campaigns, select specific communication channels, allocate a budget and assess the campaign strength.

      Event marketing helps you market event-specific products to your customers, thus helping you to provide specific deals depending on your customer’s needs.

      Service Automation

      It helps you become a top-notch service provider by helping you dish out fast and efficient responses to your customers.

      The customer’s interaction and purchase history can be leveraged by the customer support team to provide them with the most accurate solutions to their problems and service requests.


      Through the boosted visibility of customer data across all departments, customer queries can be assigned to specific people for an accurate resolution resulting in a seamless customer experience.

      Any business that aims at driving customer satisfaction and attaining loyalty needs Operational CRM. It ensures great sales and superior customer service.

      Hubspot and Salesforce are excellent examples of Operational CRM.

      2. Analytical CRM

      Analytical CRM systems assist businesses with taking data-supported decisions by evaluating and predicting customer behavior.


      It functions as back-office operations with the following primary functions:

      • Collating and organizing the collected customer information
      • Storing data securely
      • Analyzing the collected data to improve internal and external operations
      • Offering personalized interaction for enhancing customer and prospect relationships
      • Injecting efficiency into marketing campaigns
      • Preventing customer deflection and focuses on customer retention
      • Analyzing performance metrics for sales forecasting.

      The operational CRM attributes the customer to a sales funnel, at which point analytical functionality comes into play.


      It is typically divided into five categories:

      • Customer Analytics — It enables you to identify and understand customer patterns via data mining to generate customer behavior reports. This is used to establish the customer segments that are worth pursuing.
      • Marketing Analytics — It is used primarily in the planning and management of marketing campaigns governed by branding and product analysis. It helps you evaluate marketing performance and also helps you in understanding the driving factor of consumer actions.

      Zoho CRM monitors performances and routine processes via custom dashboards 24/7, and allows you to view and analyze the collected data in custom views to support your business requirement.

      • Sales Analytics — It enables you to understand the sales cycle (such as which products to focus on, how to reach customers, where to sell, etc.), redesign plans, and improve the sales pipeline. You can identify, model, understand, and predict the sales trends and outcomes to help sales reps work on their weak areas.
      • Service Analytics — It allows you to collect information from various sources, process and analyze the generated data to determine customer satisfaction rate. It gives you an idea of whether you need to extend, improve or personalize certain services to your customers. Also, with the help of this analysis, you can optimize your services depending on the costs and revenue granted.
      • Channel Analytics — It is most useful in understanding which specific means of communication your customers prefer such as email, text, phone calls, etc. The contact center analytics require operational as well as conversational data for gaining proper insight into customer behavior as well as the performance of service reps. This is done with CRM Transactional data, Communication data, and Representative Performance data.


      Analytical CRM is ideal for businesses dealing with marketing operations, sales teams, and customer services.

      This type of Customer Relationship Management(CRM) software is used mostly by data analysts, business intelligence professionals, and accountants.

      3. Collaborative CRM

      Collaborative CRM systems simplify workflows and processes across organizations, helping you close a deal by consolidating communications and shared resources.

      You can create communication(s) across various divisions of your business (such as marketing, technical support, sales, external customers, distributors, and vendors) working towards customer service.


      It unifies efforts from various business functions aimed at achieving the shared goal of customer satisfaction by:

      • Eliminating silos
      • Leveraging communication channels
      • Using the communication data
      • Appropriating efficient document management
      • Cutting down the cost of customer service
      • Providing better upsell to the existing customers
      • Increasing the customer retention rate and loyalty
      • Helping you better understand customer requirements
      • Providing customer data across teams for multi-channel interactions

      With the Collaborative CRM data, you can implement product, strategic, and customer analysis by sharing it across the departments using chat, emails, voice response systems, websites, etc.


      The functioning of Collaborative CRM can be categorized into two modules:

      • Interaction management — It works towards enhancing B2C (Business-to-Customer) communication. For example, a customer might prefer email as the means of communication while the other might opt for web meetings or face-to-face interactions.
      • Channel management — Once the interaction medium is evaluated and implemented, it uses appropriate tools and trends to improve channel communication.

      This is how Collaborative CRM works:

      • In-Built Chat Application — Your team can manage work and enhance the customer base by accessing the chat tools that help in streamlining communication. You are kept well-informed about follow-ups and important events through real-time notifications in chat apps.
      • Records Tagging — You can keep all the teammates in the loop by sharing important details by organizing the data with appropriate tags. Reports of a specific deal can be segregated by filtering. Zoho CRM, for instance, allows you to filter customer lists based on tags.
      • Project Management — You can allocate tasks to teammates and store documents in a centralized location for efficient data storage and eliminating data duplication. With role-specific user access, it helps in simplifying task management.
      • Real-time Reporting — It helps you in attaining meaningful insights from the visual reports contains leads, revenues, pending tasks, and sales predictions.

      Collaborative CRM is ideal for businesses aiming to retain their existing customers.

      Microsoft Dynamics 365 provides you with a comprehensive suite of tools to carry out all your business processes in its Microsoft Azure Cloud computing ecosystem.

      4. Strategic CRM

      Strategic CRM lays down strategies to ensure lead conversions, sales boost and accelerated growth.

      Without an effective CRM strategy, businesses risk delivering subpar customer value.

      Salesforce’s Sales Cloud is an efficient Strategic CRM that enables businesses to concentrate on and enhance their knowledge about customers.


      Strengthens Commitment

      Strategic CRM comprises nearly all the departments that are involved in a sales process end-to-end, such as finance, manufacturing, distribution, sales, marketing, etc.

      Strategies are aligned depending on the combined feedback and support from all these departments.

      These departments are kept informed about various developments, strategy implementation, and the outcome of these strategies.

      This ensures combined efforts and organizational commitment.

      Builds A Value-Driven Project Team

      It involves building a determined project team full of experienced and goal-driven professionals.

      This team is responsible for acknowledging various departments (Management, Sales and Marketing teams, Financial, Technical, and External Experts) about the benefits of customer relationship management strategies.


      Requirement Analysis

      Sharing the vision of the final product with the customers is one of the most challenging aspects faced by businesses.

      Requirement Analysis allows you to determine the requirement and expectations from a product. It demands frequent communication with the consumers to gain insight into their expectations, resolve conflicts, and document all the key requirements.

      This process is performed in four steps:

      • Identifying the end-users or customers
      • Understanding requirements (Holding one-on-one interviews; utilizing focus groups; building prototypes)
      • Categorizing requirements (Functional requirement; Transitional requirement; Technical requirement; Operational requirement)
      • Interpreting and organizing the requirements (Defining and prioritizing the requirements; conflict resolution; feasibility analysis; impact analysis)

      5. Campaign Management CRM

      A Campaign Management CRM is centered around planning, execution, tracking, and analysis of marketing initiatives.

      It involves a series of activities and initiatives to nurture customer relationships.


      A CRM campaign typically includes:

      • Developing and sending emails
      • Sending short texts like SMS
      • Social media outreach
      • Promotional outreach
      • Online advertising campaigns

      Any CRM tool is by default equipped with the features that allow you to run initial campaigns, but some CRM tools such as Zoho CRM come packed with full-stack tools to streamline your entire sales journey such as designing, approving, organizing the content easily for a well-orchestrated marketing campaign.

      A Campaign Management CRM has three key features:

      Campaign Automation

      You can develop promotional content such as blogs, emails, landing pages, web forms, e-books, case studies, white papers, etc. in addition to the content distribution by the teams via text, social media pages, or emails.

      Post content preparation, you can automate its deployment.

      HubSpot is a CRM software that focuses on marketing to help you nurture leads via automated email campaigns.

      Customer Segmentation And Management

      The leads must be segmented so that you can target them with appropriate content and via appropriate channels.

      Based on the contextual lead data (such as lead score, and brand engagement history) that is stored in the CRM, you can create customer lists for better contact management.

      Freshsales is equipped with filtering capabilities to segregate the audiences.

      Analytics And Reporting

      Tracking campaign performance is crucial since it allows you to make performance-focused adjustments to the content, contact information, and channels.

      Analytics and Reporting work towards achieving campaign optimization (getting the best conversion rates based on leads generated, potential customers moved to the next stage of sales, etc.). Pipedrive, for instance, allows you to look at the email marketing campaign performance and track if the emails have been clicked or opened.

      Wrapping Up

      Aside from the marketing and sales aspects of CRM software, what makes a CRM platform the right CRM software for you is one that integrates every key pillar that helps your business function seamlessly, manage customer journeys, and yield profitability.

      When you have something that can effectively manage your strategy and your tactical marketing activities, it allows you to be more responsive with the messaging you’re trying to put out, and who you’re communicating with, and ultimately provides a much better ROI.

      Each CRM software type offers distinct advantages and disadvantages to your company, and each one may be a better fit for your business in the long run.

      However, in the end, you should go with the CRM solution that best meets your specific needs.


      Even if none of these five options on this list work for you, contacting a third-party CRM developer can give you even more options.

      The point is to never be satisfied with your current CRM practices and to actually explore multiple types of CRM systems and see if anything new will make your operations run more smoothly.