CRM's - Definition + Pros & Cons | The Wegacha Point of View

Publicado por Andres Aguerrevere en

CRM's - Definition + Pros & Cons | The Wegacha Point of View

Customer relationship management or CRM, is a system that helps companies provide a better service by managing the relationships and data with its customers. There are different software that can be used for this purpose; all of them offer reliable procedures to keep track of all customers and possible leads in real time.

Sounds great, right? Having a great way to collect all relevant information from current and possible customers to enhance your relationships. But how does it work? CRM systems gather important information, from all your company’s communication channels; website, social media, sales, customer service, helpdesk and directs it to the different departments to take the corresponding actions.

One of the greatest CRM systems is the one offered by Infusionsoft, it helps you organize and categorize your contacts, deleting duplicates and classifying them as hot or cold leads, based on their demographics, interaction and behaviors. CRM systems also create a segmentation of your customers based on different criteria, so you can send the right messages to the right people.

We’ve talked about some of the benefits of using a CRM system; let’s analyze all the advantages it brings to your company:

  • Data entry automation: It avoids your sales team a lot of time, by automatically collecting all relevant data from your customers using all media available through where you connect. Some CRM software even allow you to create email templates and automatically send them to your contacts.
  • Boost team collaboration: Since all data information is storage in one single location, your different teams can work at the same time with the same information, keeping track in real time of every action taken by each team.
  • Interactive dashboard: They have a register of all important information automatically categorized showing the most relevant and on top, where sales reps can easily find it.
  • It is a scalable system: As your company grows your CRM system grows with you, adapting its capabilities and functions to your requirements.
  • Automatic prioritization of leads: It classifies your leads, analyzing their behavior, making your sales team job’s easier by allowing them to focus on reach out to those contacts who are a hot lead, or are close to be.
  • Organizes everything in the right place: Once the information is gathered every team can turn it into direct actions.
  • Marketing: Form a data base, generate new leads, and launch campaigns.
  • Sales: Assign, qualify and convert leads, track new opportunities, set follow-up.
  • Orders: Deliver products, produce invoices.
  • Customer support: Handle cases, carry out training, and provide service.
  • Can be accessed remotely: Since all the information is storage in the cloud it can be easily accessed from any device with internet connection.
  • Increases revenues: Even though CRM systems are not free, you need to invest money to implement and subscribe. But the good news is that there’s actually a direct connection, between the use of a CRM and the revenues you receive, for each $1 there’s a return of $5.60.




It is important to notice that even though CRM systems provide an exceptional support to your company there are some cons that are also important to consider before implementing:

  • Loses the human element: automation is great, and can help you save a lot of time, nothing equals the human interaction that can sometimes be necessary.
  • The CRM software can present some security issues: Even though most systems have outstanding security, it could still present some flaws, and not only by being hacked, but if there’s electricity or connection issues the data cannot be accessed. Also if there’s the possibility of an employee deleting all the information or giving access to it to someone outside the organization.
  • Takes time to implement: at first during the training process it can be very exciting to learn a new system that will make their work easier, but when it comes to implement the system there’s a lot of work involved that might not be easy or exiting.
  • Technical support is required: Companies have two options when facing technical issues, they can either hire their own team to take care of any possible issues, or outsource a company to take care of it, either way it represents additional expenses.
  • Needs constant maintenance: If the software isn’t properly updated and with the right maintenance all saved data might be lost or inaccessible creating a remarkable setback.
  • Puts sensitive data out there: As all the information collected is storage in one place, it creates the possibility for a third party to have access to it and sell it to the highest bidder, breaking the confidentiality of your leads.
  • Depends on a proper set-up: If the system is not properly set up in the beginning, working with it might be difficult and complicated, leading to time loss, and therefore employees will avoid using it.
  • Used for wrong purposes: The idea of a CRM software is to organize and facilitate the contact between the sales and marketing team mostly and the customers. But some companies might set it up, for the sales manager to keep track of the employee productivity, missing out the real benefits of the system.
  • With an imperfect process it becomes useless: The implementation and set up of a CRM system is only the first part of the process. The second, and equally important one is documenting correctly all the step of the sales process and plan, without it, the implementation and data collection is ineffective.

After understanding what a CRM is, how it works and what are some of the pros and cons of implementing one in your company, it is important to decide whether you and your company need one.

Some small companies might not needed it, if they only have a small number of customers, it might seem unnecessary to invest time and money on implementing a CRM, but, figures show that business can gain up to 30% of lead conversions after implementing it. Therefore it is highly recommendable to implement it in any company even small ones, since it will be considerably useful in the growing process.

There are some scenarios that might help you identify whether you need a CRM software to help you handle your leads and database:

  1. You have more than one source for customer data: It will help you unify all your information so it’s updated in real time and all your employees have easy access to it from whatever location they are.
  2. Customer interactions are not watched over: If you don’t have easy access to oversee the interactions between your people and your customers, a CRM system will allow you to keep track of every communication.
  3. Reports are done manually through a tedious process: If your employees need to go through a hard process to collect data and create reports, the CRM will facilitate this process.
  4. You’re having problems with doing follow-up: If you need help keeping track of the actions taken with your leads it might make it hard for you’re to take the appropriate follow-up actions, while a CRM system will direct your team towards the needed actions.
  5. Your process have a slow growth: If your company grows from 20 to 200 employees in a year, your processes can definitely not be the same, and to adapt them may be hard, and important information might be lost along the way, while a CRM adapts itself to your needs.



Remember to do some research first, before deciding which system better suits your needs, and plan ahead all the functions you will need from it, so it is set up and implemented in the right way. These are some questions you need to consider to help you chose the right system for you:

  • Is it easy to use and implement? Can I train my employees?
  • Is it customizable?
  • What limitations does it have?
  • What type of security does it offer? How well protected is my data?
  • What happens in case of an outage?
  • Can I integrate it with other programs I use?
  • What features does it offer for my different departments?
  • What limitations does it have?
  • How’s the customer service they offer?
  • How much is the cost? Are there any additional fees?


Now that you have all the basics to know a CRM system plan yourself to determine the uses it will have, the features you need and start implementing on your business.


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