The primary benefit of good customer relationship management (CRM) is rapid lead conversion[1], increasing profits as more customer interactions result in sales[2].

Since CRM is used to obtain insight from customer data[3], CRM systems utilize special software that stores customer information and analyzes patterns from this information. The more a business knows how prospects behave, the easier it is to nurture them and anticipate their needs.

When implemented properly, a CRM system can help a business group contacts logically, streamline communications, enrich customer relationships, retain paying ones, and regain those who have left.

Furthermore, CRM software can help keep sensitive customer data private while still enabling employees from different departments to coordinate their efforts and improve sales force automation.

There are three types of customer relationship management systems: analytical, operational, and collaborative.

Analytical CRM

Analytical CRM helps turn raw sets of data into actionable insights for sales teams. The main feature in this CRM platform is a reporting capability that sheds light on:

• Marketing campaigns that generate the most leads.
• Types of prospects that usually convert.
• Kinds of sales actions that typically result in a purchase.
• Customer accounts with the highest lifetime value.
• Issues affecting customer satisfaction rates.
• Customer complaints frequently received.
• Speed and effectiveness of the help desk when addressing concerns.

Analytical CRM systems help identify the weaknesses in the business and highlight opportunities to fix them.

Operational CRM

Operational CRM systems paint a portrait of the customer journey[4] through the entire sales process. They illustrate how prospects move through the sales pipeline, no matter how many touchpoints there may be, and how they continue to interact with the business after they convert.

In addition, operational CRM systems can automate marketing, sales, and service processes, which can greatly benefit customer-facing departments in a business.

Collaborative CRM

A collaborative CRM system breaks down “silos” so different departments in a business can be on the same page regarding a specific issue, campaign, or project. This kind of contact management is ideal for organizations with fragmented teams[5], such as those with remote customer service representatives.

Since every contact’s conversation history is in one place and accessible by all sales teams, no customer would have to repeat themselves whenever they speak to a different person about the same issue.

Across all industries, the most popular CRM models are IDIC (identify, differentiate, interact, and customize), Payne and Frow[6], and QCI (Quality Competitive Index).

IDIC CRM Model

The IDIC model categorizes customers into different groups based on their characteristics and potential value for the business in the future. IDIC adopters believe that their business can communicate effectively after understanding who their customers are and how they are different, and then adapting messages to create the highest rate of customer satisfaction and customer retention.

Payne and Frow

The Payne and Frow model emphasizes the need to determine what separates the organization from the rest to establish a plan for cultivating customer loyalty. It also underscores the importance of creating buyer personas to craft customer service processes.

The next step is figuring out what the business and customers have to offer to one another.

Everyone in the organization must regularly reassess and revise the original strategies and values to align with the audience. If there is new information, this new information should guide the decisions of the team.

The Payne and Frow CRM method is a fluid model that tells every member of the sales team how to act and react in different scenarios.

QCI CRM Model

The QCI model is more about managing customers than emphasizing positive customer relationships.

This CRM strategy leaves little room for guesswork, so it does not assume how contacts would behave without solid data.

Therefore, this model puts a premium on technologies that feed the CRM information and designated employees in charge of managing feedback.

In terms of customer services, QCI considers sales volumes and customer satisfaction the ultimate indicators of staff performance.

Customer relationship management can help real estate professionals accomplish work that they could not normally do[7]. For example, getting in touch with dozens of clients (i.e., sellers and/or buyers) and remembering their unique needs require a sophisticated level of contact management.

The right CRM tools can help agents do more with less time. They can make it painless to track lead generation campaigns, organize contacts, connect with multiple prospects in a timely manner, save important documents, manage calendars, streamline email and marketing automation, beat deadlines, and keep up with trends[8].

Salesforce is one of the world’s most recognizable CRM providers. (credit: Medullaoblongata Projekt, CC BY-SA 4.0 via Wikimedia Commons)

In addition, real estate CRM systems can pull data from sources like Zillow and Trulia, putting a bevy of properties for sale in front of agents.

These benefits reflect the increased adoption of CRM in real estate. In fact, data shows that CRM technology boosts real estate agents’ sales to high six figures a year when they migrate customer data into CRM software[9].

BY THE NUMBERS: After consolidating four tools into a single CRM, the adoption rate of Avison Young brokers rose from 23% to 90% in just 4 months.

Source: HubSpot

• Customer relationship management (CRM) pertains to the practices, strategies, and technologies used for engaging with leads and new customers to get the most value out of them for as long as possible.
• CRM employs CRM software that does things from gathering actionable insights, illustrating customer lifecycles, and facilitating employee collaboration and interaction throughout a sales cycle.
• CRM systems can be beneficial in many ways, but their utility depends on what type of contact management system they are and what model their users choose to follow.

1. Barker, S. (2017, July 29.) How to Turn Your Leads Into Customers: 5 Steps You Need to Know. Inc.com. Retrieved https://www.inc.com/shane-barker/the-1-secret-weapon-you-need-to-grow-your-business.html
2. Adams, R. (2017, August 4.) 8 Surefire Ways to Earn More Money From the Customers You Already Have. Entrepreneur. Retrieved from https://www.entrepreneur.com/growing-a-business/8-surefire-ways-to-earn-more-money-from-the-customers-you/297203
3. Crail, C. (2022, August 29.) Customer Lifecycle Management (CLM): The Ultimate Guide. Forbes Advisor. Retrieved from https://www.forbes.com/advisor/business/customer-lifecycle-management/
4. Sorman, A. (2022, October 6.) The best way to map the customer journey: take a walk in their shoes. SurveyMonkey. Retrieved from https://www.surveymonkey.com/curiosity/map-customer-journey-keep-customers-happy/
5. Power, B. (2013, February 7.) Keeping Work Organized when Your Team Is Fragmented. Harvard Business Review. Retrieved from https://hbr.org/2013/02/keeping-work-organized-when-your-team-is-fragmented
6. Frow, P. & Payne, A. (2006.) Customer Relationship Management: from Strategy to Implementation. Lisbon School of Economics & Management. Retrieved from https://www.iseg.ulisboa.pt/aquila/getFile.do?fileId=10604&method=getFile
7. What Does a Real Estate Agent Do? Key Roles and Duties. (n.d.) Indeed. Retrieved from https://www.indeed.com/recruitment/c/info/real-estate-agent-roles-and-duties
8. Emerging Trends in Real Estate 2023. (2022, October 26.) PwC. Retrieved from https://www.pwc.com/us/en/industries/financial-services/asset-wealth-management/real-estate/emerging-trends-in-real-estate.html
9. Velardi, P. (2019, July 15.) Statistics You Must Know as a Real Estate Agent. ReferMeIQ. Retrieved from https://www.refermeiq.com/resources/real-estate-statistics-you-must-know/