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What is CRM? Also explains the popular Microsoft Dynamics 365

Table of contents

  • CRM concept
  • Benefits of using CRM tools
  • CRM can also be implemented with Microsoft Dynamics 365
  • Key features of Microsoft Dynamics 365
  • summary

CRM is a tool used for customer relationship management, and many companies are implementing it. Some of you reading this article may be considering implementing a CRM tool. There are various types of CRM tools, including one called Dynamics 365 provided by Microsoft. This time, we will explain CRM tools and Dynamics 365.

CRM concept

What is the purpose and background of CRM? Here, we will touch on the concept of CRM.

What is CRM?

CRM is an abbreviation for “Customer Relationship Management”, which is translated into Japanese as customer relationship management. CRM is equipped with various functions including customer management. CRM has two meanings: as a customer-centered business method and as an IT tool, which will be explained later.

Background to the spread of CRM

Advances in IT technology are behind the spread of CRM. Up until now, we had been managing documents using offline tools such as documents and Excel, without using IT technology. However, with the development of technology, various IT tools have appeared and the amount of information has become enormous, so there is a need for efficiency using digital technology. CRM is starting to be used by many companies as a way to solve customer management issues.

Purpose of CRM

The purpose of CRM is to maintain and improve profits over the medium to long term by maximizing LTV (customer lifetime value). LTV refers to the value a customer gives to a company over its lifetime. In other words, improving LTV leads to improved business performance. In order to improve LTV, it is effective to use CRM to understand customer needs and conduct sales activities that are tailored to each individual customer.

What is CRM tool?

A CRM tool is literally a tool for running CRM. The tools mainly have customer information management and data analysis functions. Customer information management is the most important function of CRM, and is characterized by the ability to centrally manage various information about customers. Since customer information is managed on CRM, you can easily view customer information managed by each person in charge. Data analysis allows you to see trends for each customer by combining and analyzing customer information and sales results. After the analysis, it will be useful for determining the appropriate approach to customers and formulating measures.

Benefits of using CRM tools

Utilizing CRM tools provides the following four benefits:

  • Centrally manage customer information to improve efficiency
  • Visualize and manage customer information
  • Share information in real time
  • You can develop existing customers into good customers.

Centrally manage customer information to improve efficiency

When managing customers with a CRM tool, all users refer to the same data, so once registration in the database is complete, unified management is possible. Centralized management allows everyone to view the same data, making it easier to obtain customer information. Furthermore, since you can view data on customers you are not in charge of, you can refer to customer information in advance and consider the appropriate approach method.

Visualize and manage customer information

By using CRM tools, you can visualize customer information, making it easier to manage it than ever before. When managing outside of the tool, each person in charge uses different management methods, so it is difficult to know which information is up-to-date, and sharing methods also vary. However, by managing it on a CRM tool, you can immediately access and check the information you want. Additionally, since the information is aggregated, it is also possible to convert the desired information into graphs, tables, etc.

Share information in real time

Information entered into the CRM system is shared with stakeholders in real time. In CRM, all users refer to the same database, so all users can view the latest data when the data is updated. Thanks to smooth sharing, you can view the history of customer interactions even when the person in charge is not present, allowing you to deal with any problems that may arise. Additionally, information can be shared not only with the sales department, but also with the marketing and customer support departments, potentially leading to new discoveries never seen before.

You can develop existing customers into good customers.

CRM systems specialize in approaching existing customers. By collecting information on existing customers and analyzing the collected data to understand their needs, you can provide products and services that match those needs. As a result, customer satisfaction will improve, and existing customers may become loyal customers. By becoming a good customer, you will continue to purchase products and services, which may lead to greater profits for your company than ever before.

CRM can also be implemented with Microsoft Dynamics 365


Microsoft Dynamics 365 is a business application provided by Microsoft that covers various areas. Here, we will explain the features of Dynamics 365.

Many functions are compatible with CRM

Dynamics 365 is a business application that consists of many features. Among them, apps that specialize in CRM include “Dynamics 365 for Marketing” and “Dynamics 365 for SalesCRM.” The detailed functions will be explained later.

Can be linked with Microsoft Office

Dynamics 365 is highly compatible with Microsoft Office and has a usability similar to other Microsoft products. Data created with Dynamics 365 can be exported to Excel, so subsequent data editing can be done smoothly. Furthermore, data entry into Dynamics 365 can be done through Excel, so you can use it without having to learn any special operations.

Highly scalable and flexible

With Dynamics 365, you can choose between cloud or on-premises, so you can operate it to suit your company’s environment. Furthermore, if there are any deficiencies in the items used in Dynamics 365, changes can be made without programming, so you can modify Dynamics 365 to suit your business.

Key features of Microsoft Dynamics 365

Microsoft Dynamics 365 has the following main features:

  • Dynamics 365 Sales
  • Dynamics 365 Marketing
  • Dynamics 365 Customer Service
  • Dynamics 365 Field Service
  • Dynamics 365 Operations
  • Dynamics 365 Finance
  • Dynamics 365 Commerce
  • Dynamics 365 Human Resources

Dynamics 365 Sales

Dynamics 365 Sales is a function that plays the role of CRM and SFA, making sales activities more efficient. Specifically, we will identify more promising relationships among existing customers that are centrally managed, and proceed to build them into high-quality customers. Dynamics 365 Sales improves sales productivity and performance.

Dynamics 365 Marketing

Dynamics 365 Marketing is a function that plays the role of MA. We target potential customers who can become our customers in the future, and will lead to building customer relationships later on. Another feature is that we grasp market trends and select and develop appropriate customers.

Dynamics 365 Customer Service

Dynamics 365 Customer Service is a feature that enables enterprise customer service. This function is used to respond to inquiries, and the content up to now is stored as data, which will be utilized in future customer responses. As a result, smooth response becomes possible, which leads to improved customer satisfaction.

Dynamics 365 Field Service

Dynamics 365 Field Service is a function that supports field services such as inspections and repairs performed at customer sites. When on-site repair work or inspection work is required, it is possible to manage employee schedules and optimize resources, increasing the work efficiency of technicians. Furthermore, it will be easier to manage and reduce operating costs.

Dynamics 365 Operations

Dynamics 365 Operations is a feature that allows you to manage and analyze project progress. In addition to general project management functions, you can also grasp the number of required members and manage schedules at the same time.

Dynamics 365 Finance

Dynamics 365 Finance is a function that integrates and streamlines sales, production, logistics, and accounting operations. By integrating a company’s core systems, collaboration between departments becomes possible and data is shared smoothly. Additionally, since all operations are linked to the final accounting system, the credibility of financial information increases, leading to improved corporate reliability.

Dynamics 365 Commerce

Dynamics 365 Commerce is a feature for enterprise retail stores. The purpose is to improve the customer experience, and it can be used in initiatives to make the customer feel more valued. Furthermore, it is equipped with functions such as inventory management and stock receipt management for each retail store.

Dynamics 365 Human Resources

Dynamics 365 Human Resources is a function that allows companies to manage human resources such as recruitment and training. Since you can set employee skills and goals, you can manage each employee more efficiently. In addition, it will help you understand the resources a company has, so it can be used in recruiting activities for people with missing skill sets.

summary

CRM is a system used for the purpose of managing customer information. There are various products related to CRM, but Microsoft Dynamics 365 can be used in conjunction with Office products, so it can be used without sacrificing the user experience. 

 

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