Customer Relationship Management 101: Get To Know the Most Used CRM Terms

//Customer Relationship Management 101: Get To Know the Most Used CRM Terms

Customer Relationship Management 101: Get To Know the Most Used CRM Terms

“Politeness will allow advertisers to walk,” James Cash Penney said in a purely entrepreneurial era. The idea behind his offer today is even more important. As our modern customers become more patient, decent accommodation becomes less important.

But just expressing politeness is not enough. Speed, efficiency and availability are very important. Customers want every step to feel special and enjoyable. The customer relationship management phase enriches your customer experience while accelerating growth.

We’ve created a list of terms and phrases that professionals and providers often use to familiarize themselves with terminology and take advantage of the best CRM solutions.

What is CRM?

Customer Relationship Management (CRM) refers to a set of practices and strategies that can be used for customer interaction and data processing, while CRM software systems record, store, analyze, and simplify these management processes throughout the customer lifecycle.

By default, the CRM tool acts as a database of customer information. In addition, the CRM system manages workflows, automates marketing campaigns, enhances sales and optimizes all aspects of customer service.

It has as many features as it does. The main purpose of practice and software is to identify customer needs, predict their needs and reduce their efforts based on future interactions with past data.

In-house CRM

The first two terms to be familiar with are “internal CRM” and “cloud CRM.” Both have advantages, but many companies choose the first solution for three reasons.

On-premise CRM is a kind of customer relationship management software that a company hosts on its own server. This allows for complete system customization and is not suitable for all cloud solutions. The second feature that attracts enthusiasts is to better control CRM data.

Cloud CRM

The cloud version of the software is called “on-demand CRM”, “online CRM” and “SaaS CRM”, maintained and managed by the provider’s server and accessible via an Internet browser.

The most common benefits of using Cloud CRM are ease of use and easy access. No internal software, no installation and maintenance, no internal software. The only way for users to access the system is through the Internet. Cloud CRM is available anytime, anywhere.

CRM entity

CRM entities are used to manage customer data within the system and model it as different data records. If you can work more easily, you can think of it as a database table. For example, a lead customer entity holds a lead customer record and a contact entity holds a contact record.

Each CRM system has a number of template entities, the most common of which are companies (also known as accounts), transactions (opportunities), quotations (recommendations), orders, etc., as well as potential customers and contacts mentioned above. On most systems, you can also add custom entities.


In the business vocabulary, the sales lead is the audience salesperson or an individual or organization that is interested in the proposal. In the CRM vocabulary, the term has the same meaning.

Not all potential customers are converted to paying customers, so not all CRMs need to receive the same CRM processing. The system uses many factors to assess interest and characterize it as “junk”, “worm” or “hot” clues.


Otherwise, potential customers called audiences are critical to all sales processes. They are hard to come by, and large and small companies are always looking for new ways.

Various strategies for finding and recruiting potential customers are properly referred to as prospecting. Outbound calls and emails are the most common exploration practices, and you can solve new prospects or reschedule and train cool people.


Unlike telemarketing, the term “contact” usually refers to “cold” and the CRM system does not specify an audience. In fact, CRM contacts represent an audience that has been converted by purchasing a product or service.

The CRM system detects customer conversions and automatically upgrades the status of potential customers to contacts. Allow direct import, but it puts the process in an automated process and focuses on building relationships and keeping customers.


The contact is no longer an audience, but it is an existing contact, so the audience must go through multiple CRM stages to reach the final contact. The term “transaction” refers to one of these pre-order steps, but it also relates to the post-purchase status of the buyer after becoming part of the customer base.

That is, a transaction is a sales opportunity that can be identified by a prospect or contact record. Since most CRM transactions are easy to visually represent sales channels, you can track and analyze behavior throughout the process and customize the steps until you finally make a purchase.


There are a lot of confusion about technical sales terms, such as potential customers, potential customers and transactions. It is worth noting that there are sometimes negligible semantic nuances and other important implications. In the case of “opportunities”, fortunately the situation is not so complicated.

In sales and customer relationship management, “opportunity” is synonymous with “transaction”. Opportunity management is the same as transaction management, so these two terms can be used interchangeably. Some CRMs use the first item and others use the second item.


If your CRM provider provides you with account management software, this system is sometimes called in two ways. Because the “accounts” in CRM software are called “companies,” remind them before you are confused about what you are buying.

The main aspect of a CRM account is that it can be associated with individuals and multiple contacts. This entity is especially important for companies that perform B2B sales because the account manager can handle multiple people within the same company.


The path from potential customers to customers is long, so there is also a way to separate the product catalog from the invoice. There is a “quote” in CRM terminology that represents the official sales quote for pricing that you can send to potential customers before making a final purchase decision.

Of course, the focus of CRM quotes is to make this road more seamless. This is why modern systems integrate with product catalogs and automatically convert quotes into invoices for the other party. For your convenience, you can email or print template quotation marks.


“Invoices” are not technical terms as funds have already begun to travel around the world. Although the CRM invoice is only a digital format for the same commercial account that the seller sent to the buyer, there are many convenient options.

Modern customers expect an effective and professional service, so look for a system that can use the brand logo to customize invoices. For the same reason, you can choose a solution that supports custom fields and print invoices, or send them directly to customers via email.

If your company provides project-based services and bills every month, please apply for periodic billing. You can pre-book invoices to reduce manual tasks and let the autopilot complete the rest of the tasks.


In CRM terminology, “activity” is a separate entity that is used to set up a single target, just like the project management software “task.” Most CRM systems come with a set of built-in activities such as email, phone and appointments, but they can also be customized.

Work process

In addition to its core capabilities, the best CRM system offers many features designed to streamline business processes such as sales, accounting or customer service. One of the most beneficial is to increase productivity and improve performance through workflow management and automation.

We are pleased to find that the CRM workflow includes most of the basic job management features. The automation of everyday tasks is still considered a gem in the crown. With just a few clicks, you can create automated responses and set up triggers for almost any CRM event, such as sending an email or ticket verification to the customer after notification.

Sales funnel

The Sales Funnel is a visual representation of your sales. Some CRM solutions show all transactions at all stages of the customer journey, from the moment a potential customer becomes a qualified potential customer to the time when a potential customer becomes a paid customer.

Because sales are alpha and omega for customer relationship management (meaning there is no acquisition and parenting without actual conversion) the funnel is an integral part of every CRM system.

Sales channels

The terms “sales funnel” and “sales channel” are common synonyms and are not identical. Both describe the sales process for potential customers, but the pipeline allows you to specify the current sales status for each sales line. For example, if your company sells cars, accessories, and car services, you may want to understand how each area works. Therefore, there are three sales channels: “automobile sales”, “accessories sales” and “automobile services”.

Visualizing the CRM sales channel that represents the sales process enables you to track and maintain each line of business throughout the process. Usually, provide your own reporting system.

Marketing automation

Regardless of the business aspects of system automation, the principles are always the same. As with CRM workflows, CRM marketing automation is triggered by a number of predefined events, eliminating the need for manual intervention and reducing the risk of human error.

For example, this applies to many CRM software systems that provide this functionality. By allowing users to track customer behavior on the system, you can manage remarketing lists with a minimum of people. Phones and emails are easy to automate and sales channels are automated.

360 degree customer view

Before the advent of complex technology, the “customer’s 360-degree perspective” was a purely conceptual idea that gained the idea of ​​a perfect view of the customer by collecting data from each single point of contact in the company’s brand.

Today, this idea is very real. This is due to the advanced customer tracker, data collector and analysis tools (all CRM systems are available to users), which are no longer the dream of making strategic decisions based on comprehensive customer data.

Business Process

Business processes in CRM software allow you to customize and sort the system’s “active” entities in a way that best suits your company’s unique workflow. Regardless of your task management or email marketing automation, business processes provide fully customizable and very useful features that simplify virtually every aspect of your day-to-day operations.

Adoption rate

This term does not imply any specific function or functionality of the CRM software system, but does not imply that it is not important to the company that uses these solutions. Conversely, “adopting” may be the most important factor in choosing one CRM rather than another.

The adoption rate represents the percentage of organizations that actually use the CRM solution they purchased. Compared to the number of organizations that are difficult to adopt software. In short, this ensures effectiveness.

Web form

Finally, a trusted CRM solution requires a web window builder and a set of customizable templates to facilitate insertion into your website. The purpose of the CRM web form is to collect information left by customers on the website and bring the data into the system for further classification and management.

If you don’t have a reliable retention rate and you don’t have a successful company, and you don’t have a trusted CRM, you don’t have a successful business. This is all you need to know about this software solution. We want to learn some supplements. Distinguish your identity before hiring and observe as you move from sitting to living, breathing and walking.

Bitrix24 is a free CRM solution with over 20 sales and marketing tools. Omnichannel Contact Center, Gantt Chart, Document Management and Task Collaboration Tools.


By | 2019-01-31T16:53:37+04:00 March 13th, 2019|Categories: Bitrix24|0 Comments

Leave A Comment