What is contact management software?
As companies become increasingly globalized and interact more frequently through various channels like video conferences, social media, and even one-on-one meetings, noting down customer information using pen and paper is no longer feasible. Especially in larger organizations with multiple teams who have several meetings per day, it's practically impossible to keep track of all this data unless they use a software tool to manage contacts and centralize their data.
Contact management software (CMS) serves as a digital repository for a company's contacts. It records all the interactions a company has had with its customers, suppliers, prospects, and more. Contact management software stores all relevant data and includes basic functionalities like engagement tracking, notifications of important days like birthdays, anniversaries, or other milestones, interaction tracking, and even note-taking during conversations.
Limitations of contact management systems
Having happy and loyal customers is no longer as simple as wishing them well on special occasions; it's a pretty complex process involving multiple teams and innumerable tasks. While contact management software is a good place to start when it comes to enhancing your customer relationships, there's definitely a lot more to explore. Here are some ways in which contact management systems can hold you back from achieving the highest level of customer satisfaction:
Lack of automation
Large organizations tend to have huge amounts of data with multiple fields and criteria. Because contact management systems generally lack automation features, businesses are constrained to manual data entry, thereby increasing the chances of errors and duplicate records and demanding that employees spend more time on data entry and less on more important tasks—which in turn hurts the organization's productivity.
Limited accessibility
Contact management systems generally restrict accessibility to one or two physical locations, which can make it difficult for people working from home or in the field to update data in real time. This limitation can also lead to less contextual conversations with customers, thereby lowering customer satisfaction.
Scalability issues:
Even the best contact management software can fail to accommodate the needs of large organizations that have multiple teams spread across different locations. They don't have the basic functionalities needed for proper collaboration, data scrutiny, or even data protection for businesses that operate on a large scale. MNCs tend to have complex procedures and compliance requirements that need workflows in place, which contact management systems can't achieve alone.
Lack of integrations:
Contact management software seldom has the option to integrate with other apps, which makes sharing data, collaborating within teams, and even communicating with customers a tedious task. It's not news to anyone that companies need to collaborate across departments to keep their customers happy, and without such integrations, contact management systems are simply databases for customer information.
Analytics and reporting:
Data is at the core of every important business decision. To understand what's working with customers and what's not, it's necessary to analyze customer responses to different initiatives. Contact management software doesn't offer advanced analytics and real-time reporting, which are prerequisites for strategic business decisions.
To overcome these shortcomings, businesses of all sizes are now adopting customer relationship management systems (CRMs), which have all the functionalities that contact management systems have, plus additional features and enhancements that can help businesses boost customer satisfaction and convert more prospects in a fraction of the time.
Contact management software (CMS) vs. Customer relationship management system (CRM)
A CRM is a platform businesses can use to unite and streamline sales, marketing, and customer support activities. It's the go-to solution for businesses who need to store their customer data while also keeping track of their customer interactions. Sounds familiar doesn't it?
Contact management systems and CRMs, although similar in nature, have their own distinctions, one of the biggest of which is that a contact management system can only store your contacts, while you can use a CRM to align sales, marketing, and customer support activities. A recent study has revealed that 74% of businesses say CRM software gave them improved access to customer data. CRMs can help you manage your contacts as well as undertake all the activities necessary to keep your customers happy.
Contact management software allows you to store all your data under the same roof, whereas CRMs help you organize it into different modules like leads, contacts, accounts, etc. CRMs are also often powered by AI, which can help you accurately forecast sales, generate reports, determine the next best actions, and a lot more. It's almost like you have your own personal assistant.
CRMs also have the ability to integrate with various communication and other productivity apps so you can collaborate and create new modules without having to leave your CRM. A CRM can help you unite your whole customer experience within a single screen so that you have access to all the information you need, wherever you are.
CRMs also have the added ability to scale with businesses. As your business grows, you can simply add more users to your CRM and even upgrade plans to accommodate your new requirements. With privacy at their center, CRMs allow you to restrict access to sensitive information so that people can view only the information that's necessary for them. Unlike contact management systems, CRMs are equipped with automation capabilities that can help you set workflows and validation rules to avoid completing mundane tasks yourself.
CRMs are power-packed software tools that can help you take your business to the next level.
Benefits of using a contact management CRM
Companies that use a CRM typically see their sales increase by up to 29%. Apart from increased sales, adopting a contact management CRM comes with multiple benefits:
Contact management CRMs have a lot more to offer than just managing your contacts. With features like automation, data validation, and generative AI, this software can help you manage your entire sales process from first contact to closing the deal—and even to after-sales support. CRMs can help you manage your sales pipelines and streamline sales processes by creating blueprints and even detecting anomalies. CRMs have all the tools you need to manage your sales pipeline.
By adopting a contact management CRM, businesses can automate mundane tasks and set necessary checks at every step of the sales process to ensure their employees follow organizational norms. By automating mundane tasks like data entry and email follow-ups, sales reps have more time to do what they truly specialize in: closing deals. This can help your organization boost its overall productivity levels while significantly increasing sales.
Contact management CRMs come with tools that can help you make data-driven decisions for your business. With capabilities like real-time reporting, sales prediction, and anomaly detection, they're the perfect sidekick to have when you're looking to analyze your business data. You can also set restrictions and checks at multiple data entry points so you know only the right data is entering your CRM. Integrated dashboards and consolidated reporting can help you get a bird's-eye view of your business within seconds.
CRMs are built to grow as your business does. As the size of a business changes, so do its requirements. There arises a need for collaboration, management of complex business processes, and even heavier data storage. CRM systems come with options and tools that can help you deal with organizational changes seamlessly. Increase your number of user licenses, limit access for each user, enable remote access, and add in new features as and when the need arises.
Closing a deal requires the collaboration of multiple teams. With a vast array of plugins, users can collaborate from within their CRM. They can easily transmit data to those who need it and apply checks wherever necessary. By integrating communication apps within your CRM, you can ensure that proper communication drives your organization.
Start managing your contacts intelligently
with Zoho CRM!
Key features to look for while selecting a contact management software tool
Choosing the right contact management software can give your business the push it needs to grow. With so many options to choose from, it is imperative that you evaluate them thoroughly before you come to a decision. Here are some features you should look for before you settle on a contact management tool:
Having all your data in one place is of no use if it's unorganized. Your contact management software should enable you to label and list your data under different headings so that you can easily locate it whenever necessary. Additionally, using filters, you can dive deep into your data without getting lost. Choosing a system that can help you add proper labels, allow you to update from time to time, and also put checks in place to ensure only the right data is registered can help you save a lot of time and money. Contact managers should have the power to control who can access what kind of information in order to strengthen the organization's data security and privacy.
Data is the core of any business. If your business decisions aren't based on analytics, then you're losing out on some critical points. Contact management systems should have analytics features to help you understand patterns, see what works for your customers, spot anomalies, and even help you track the progress of the projects you have underway.
Collaboration within teams is crucial to deliver superior services as well as to maintain your business's overall data quality. Your contact management software should be equipped with integrations to help you get more done without having to run multiple software tools for each task. From collaboration to automation, there are a ton of integrations businesses can leverage to make life easier.
First impressions are almost always the most important. With lead management capabilities, you can ensure that leads are assigned to the right people without delay and that you have a bird's-eye view of each lead. With AI integrations, you can determine a lead's likelihood of converting, the next best action to take, and the best time to contact them in order to strengthen your interactions with leads—thereby increasing your chances of conversion.
There's no one-size fits all approach when it comes to contacts. You might have a certain set of practices you need to follow while managing your contacts, which a standard system can't accommodate. Your contact management software must be customizable to fit your business needs. Having a low- or even no-code customization platform can help you significantly reduce the costs related to customization and adoption.
Comparison of contact management systems
- Free Contact Management
- Data migration support
- Import/export options
- Record notes
- Reminders
- Data enrichment
- Advanced filters
- Yes
- Yes
- Yes
- Yes
- Yes
- Yes
- Yes
- No
- No
- Yes
- Yes
- Yes
- No
- Yes
- No
- No
- Yes
- Yes
- Yes
- Yes
- Yes
- Yes
- No
- Yes
- Yes
- Yes
- Yes
- Yes
Why use Zoho CRM as your contact management system?
Highly rated for its usability, Zoho CRM is one of the best and most user-friendly contact management software platforms in the industry. Power-packed and high-performing, Zoho CRM is the perfect partner to help you to manage your contacts as well as your sales, marketing, and customer support operations, all under one roof.
Refreshingly simple, with an industry-leading adoption rate
Dedicated programs for migration and onboarding for 50% faster implementation
Privacy-focused platform with zero trackers or surveillance
Ecosystem of 45+ integrated business applications to run your enterprise operation
Flexible contracts with no lock-in periods
No hidden costs—we don't nickel and dime features
Don't take our word for it;
listen to what experts and users have to say!
How does contact management
work in Zoho CRM?
Manage your contacts seamlessly
with Zoho CRM!
The World's Favorite CRM, Zoho CRM is a cloud-based contact management CRM for managing data, sales, marketing, and customer support operations in a single system. Zoho CRM helps businesses of all sizes build excellent customer relationships using a built-in AI sales assistant and other features like sales pipeline management, marketing automation, analytics, and much more.
FAQs
A contact management CRM can help you take your business to the next level. Packed with powerful tools like a built-in AI assistant , a CRM can help you manage all of your business operations under one roof. They're often customizable to suit your unique business needs. A good CRM also comes with a variety of integrations that can help you get the most of your CRM without having to employ multiple software tools. By bringing all your data into one system, a contact management CRM can help boost productivity and even reduce the chances of data redundancy. Features like analytics can help you make data-driven decisions and grow your business exponentially.
A CRM can unite all your sales processes in one place. From the time a prospect interacts with you to the time they convert and need after-sales support, you can rely on a CRM to track it all: where the customer engaged with you, what their requirements were, which representative has been handling them, what stage the deal is in, the likelihood that they'll convert, and more details. CRMs are equipped with all the tools you need to covert a lead and build lifelong connections with customers.
There's no one-size-fits-all solution when it comes to a CRM. Every business has their unique requirements and processes, which a standardized software can't always match. It's crucial that businesses closely evaluate a software tool before investing their time and money into it so that they get the maximum return. Here are some pointers you should keep in mind while evaluating a CRM for contact management:
- Cost:
A CRM shouldn't burn a hole in your pocket. If you're a solopreneur or a small business, you can opt for a free CRM that offers all the functionalities of a CRM system without costing you a fortune. Make sure you read into the terms and conditions and discuss it with your vendor to determine whether there are any hidden costs or additional charges for integrations and added functionalities.
- AI integrations:
AI is the future of business. You should check whether your CRM is equipped with an AI assistant that can help your representatives get work done in a fraction of the time. Having an AI-driven CRM can enable better analytics and useful sales predictions, determine the best time to contact leads, assess the chances of conversion, and other useful information. Using generative AI can also help your salespeople save time by simply auto-completing mundane tasks.
- Mobile app:
Like your sales reps, your CRM should be able to work on the go. Having a mobile CRM can help your sales reps access while they're in the field or working from home. They can also add notes, close deals, and even map out an ideal route when they're out meeting multiple clients.
- Customization:
Your business has its own needs that cannot be fit into a standard software tool. Accordingly, your CRM should be flexible enough to accommodate your business' needs without costing you a fortune. Using a no-code customization tool with a simple drag-and-drop interface can help you make your CRM your own without hiring dedicated developers. Let your CRM fit your business; don't make your business fit the CRM.
Modern businesses need a lot more than just customer data to truly succeed. While they are a commonly used tool, spreadsheets don't match the functionalities businesses need to keep their customers happy. Using a CRM can help businesses overcome the shortcomings of using spreadsheets, such as through features that can help a business not just record data, but collaborate, fetch analytics, automate processes, enforce privacy, and even motivate their salespeople. Using free CRMs doesn't cost you anything. Users have reported higher ROIs, improved productivity, and even better data organization after switching to a CRM.
Zoho CRM is a highly rated CRM that can help you unite all your data on one platform. You can monitor data entry at multiple points to ensure that only quality data enters your CRM. To ensure privacy and data security, you can restrict user access according to your organizational hierarchy. Zoho CRM is equipped with features like blueprints, automation, sales pipeline management, customization capabilities, and even a built-in AI assistant to help you stay on top of your business.