How CRM Systems and Contact Management Tools Differ

Andrew Boyd and Alex Jeffries make a compelling argument for a distinction between contact management software and customer relationship management software in their recent column for CRM Buyer. In short, they view contact management software as a productivity tool that can help solo sales professionals manage a stack of client records. Whereas, by their definition, CRM software is highly collaborative and suited to teams of sales or service professionals trying to share information.

Under these definitions, companies might try to maximize their ROI on software by selecting less expensive contact management solutions for individual sales agents. However, the authors point out that end users must still develop formal processes and reporting tools that live outside the contact management software. A seasoned sales expert might carry a lot of customer information in his or her head. However, the reality at most companies requires sales professionals to maintain order and focus while effortlessly reporting their actions and results.

CRM software takes contact management to the next level by internalizing the best practices and required processes of an organization. Even in the most simple CRM systems, you can define sets of action steps to take every time you generate a new lead or close a new sale. The real management of CRM software is in the automated prompts that a system can provide, reminding you to reach out to a customer or to a prospect with just the right information at just the right time.

Even for solo users, CRM applications can go much farther than simple contact management tools. They can prioritize tasks based on client value, they can effectively project how your daily tasks impact the bottom line, and they can even be tied to communication tools that speed up the profiling process.

The authors suggest that sales groups can use CRM software to create a rich organizational culture based on learning and knowledge. However, the right fit of an individual with an effective CRM software platform can net the same kind of personal reward.