Understanding What CRM Data Is and How to Use It

Introducing CRM

You run a bustling coffee shop downtown. Every morning, a wave of customers floods in, each with their preferences—some ask for extra foam, others want a dash of caramel, and a few just want their coffee black, no fuss. 

Now, imagine if you remembered each of these preferences and greeted each customer with their perfect cup as soon as they walked through the door. That's the power of CRM data in action. 

In the business world, CRM data is all about harnessing deep insights into customer behaviors, preferences, and needs to tailor experiences that resonate and build loyalty. 

“It’s more than seeing who your customers are, but what they want and how they want it.”

In this blog, let’s dive into the basics of CRM data and explore why it's a goldmine for businesses aiming to enhance their customer interactions and drive growth. 

Types of CRM data: A Detailed Guide

Did you know? According to a study by Salesforce, companies that leverage operational CRM systems see a 29% increase in sales productivity.

The reason?

Each type of data serves a unique purpose, offering insights that can help tailor marketing strategies, improve customer service, and boost sales. This helps significantly enhance how you interact with and serve your customers. 

Here's a breakdown of the four main types of CRM data: 

• Identity data
• Descriptive data
• Qualitative data
• Quantitative data.

Let’s take a closer look at each of these CRM data!

1. Identity Data

Identity data forms a solid database that supports various business functions from marketing to customer service. It comprises the crucial information about a customer that helps you recognize and communicate. 

Examples

• Full name: Knowing exactly who you are dealing with.
• Company name: Useful in B2B interactions to understand the business context.
• Email address: A direct channel for digital communication.
• Physical address: Important for shipping, invoicing, or regional marketing efforts.
• Phone numbers: For more immediate or personalized contact.

Purpose

The primary purpose of gathering identity data is to facilitate ease of contact. 

Having accurate and up-to-date identity data ensures that businesses can reach out to their customers through their preferred communication channels, whether for service follow-ups, marketing, or sales efforts.

Methods of Collecting It

Identity data can be collected through various means, depending on the touchpoints a business has with its customers:

• Phone calls: During conversations, customers can provide contact details verbally.
• Emails: Customers might share additional contact information in their email signatures or through email interactions.
• Surveys: Whether digital or physical, surveys can ask for essential contact details.
• Website forms: Sign-up forms, contact forms, and checkout processes are prime places to collect comprehensive identity data.

Benefits of Identity Data

• Businesses can segment their audience based on location, company affiliation, or other demographics. This segmentation allows for more targeted and effective marketing campaigns.
• When you have reliable contact information, reaching out to customers becomes streamlined, reducing the time and resources spent on finding the right contact methods.
• Quick access to identity data enables customer service teams to assist customers more efficiently, providing a smoother and more personalized service experience.

Also Read: Understanding What is CRM Experience

Descriptive CRM Data 

Descriptive data enriches a customer's profile beyond mere contact details. This data type paints a vivid picture of who the customers are in their day-to-day lives, allowing businesses to connect on a more personal level.

Examples

Descriptive data captures a broad spectrum of personal information that may include:

• Educational level: Insights into a customer's educational background.
• Marital status: Whether a customer is single, married, or divorced.
• Number and ages of children: Useful for companies selling family-oriented products or services.
• Dwelling type: Information on whether they live in an apartment, townhouse, detached home, etc.

Purpose 

The primary use of descriptive data is to enhance customer interactions by making them more relevant and personalized. Be it a customer's lifestyle or personal circumstance, companies can tailor their communications effectively. 

For instance, a real estate agency can customize its property recommendations based on the dwelling type a customer currently inhabits or desires.

How to Collect It?

Accumulating descriptive data requires tactful and often direct inquiries that respect customer privacy:

• Businesses can design CRM input forms to include optional fields where customers can share personal information during interactions or transactions.
• Tailored surveys can gather comprehensive details, asking direct but respectful questions about aspects like home life or personal interests.
• Analyzing their activities on social media platforms can also offer insights into a customer’s personal preferences and lifestyle choices.

The Strategic Advantage of Descriptive Data

Descriptive CRM data is a catalyst for deeper customer engagement, supporting more segmented and targeted marketing strategies. It anticipates the customer’s individual needs based on life stage or personal circumstances and aligns with their interactions.

Qualitative CRM Data

Qualitative data captures the subjective aspects of customer interactions, focusing on attitudes, opinions, and motivations. This type of data helps businesses understand the 'why' behind customer behaviors.

Types of Qualitative Data

Qualitative data includes:

• Attitudes: How customers feel about your brand or products.
• Opinions: What customers think about your service offerings or business practices.
• Satisfaction: Measures of customer contentment with their experiences.
• Motivations: Reasons behind why customers choose your products or services over competitors.

Collection Methods

Gathering qualitative data typically involves direct interaction with customers:

• Customer Feedback via Surveys: Surveys are a primary tool for collecting qualitative data, allowing customers to express their thoughts and feelings about their experiences.
• Social Media: Monitoring comments, posts, and interactions on platforms like Facebook, Twitter, or Instagram provides insights into customer opinions and attitudes.

Common Questions

To extract valuable qualitative data, some common questions you might ask include:

• Satisfaction Levels: "How satisfied are you with our product/service?"
• Expectations: "What did you expect when you purchased our product/signed up for our service?"
• Evaluation Factors: "What factors did you consider when choosing our product/service?"

The Impact of Qualitative Data

Using qualitative data allows businesses to:

• Refine marketing strategies
• Enhance product development
• Improve overall customer service.

This might find useful for you: Integration of CRM and Marketing Automation

Quantitative CRM Data 

Quantitative data revolves around numerical measurements that help businesses quantify performance and customer behavior. This data type is vital for making data-driven decisions that affect sales, marketing, and overall business strategies.

Here are some key metrics commonly tracked in CRM systems:

• Customer Renewal Rates: The percentage of customers who choose to renew their subscriptions or services. This metric is a direct indicator of customer satisfaction and loyalty.
• Customer Lifetime Value (CLV): A prediction of the total value a business can expect from a single customer account. This helps companies understand how much they should invest in maintaining and acquiring customers.
• Acquisition Costs: The total cost associated with acquiring a new customer, including marketing and sales expenses. This helps businesses determine how effective their marketing strategies are in terms of return on investment.

Purpose 

The primary purposes of using quantitative data in CRM include:

• Measuring Sales Progress: Quantitative data allows businesses to track sales performance against targets and historical benchmarks.
• Forecasting Sales: By analyzing trends and patterns in sales data, companies can forecast future sales, helping in resource allocation and strategic planning.
• Targeting Marketing Efforts: With insights from quantitative data, marketing efforts can be more accurately targeted to reach the most profitable customers, thus optimizing marketing spend.

How to Collect It?

• CRM System Statistics: CRM systems automatically collect and analyze data from every customer interaction, providing a wealth of information about sales performance, customer engagement, and more.
• Sales Data: Transactional data and sales records provide concrete numbers that feed into performance metrics and help quantify business activities.

Making the Most of Quantitative Data

• To effectively utilize quantitative data, businesses should integrate this data into regular reporting and analysis routines. 
• By continuously monitoring these metrics, companies can quickly identify trends, adjust strategies in real-time, and make informed decisions that drive growth. 
• Plus, sharing this data across departments ensures that everyone from sales to marketing to product development is aligned with the company's goals and understands the impact of their work on overall business performance.

Give it a quick read and reap the benefits out of the article on: How CRM Transforms Customer Experience and Support

How to Effectively Maintain CRM Data?

Maintaining CRM data is crucial for ensuring that your system works efficiently and supports your business objectives. 

It’s not just about collecting data; it’s about keeping it accurate, up-to-date, and usable. 

Here’s a step-by-step guide to help you maintain your CRM data effectively.

1. Regular Maintenance

Just like any other system, your CRM needs regular maintenance to stay effective. 

It’s a good idea to set up scheduled reviews where your team can check the accuracy of the data, correct outdated information, and fill in missing details. 

Think of it like spring cleaning for your CRM—if you leave it unchecked, clutter builds up, and things get harder to find.

• Set a reminder to review your CRM data monthly or quarterly. 
• Look for outdated contact information, incorrect records, or inactive leads that can be archived.
• Regular reviews prevent data from becoming stale or irrelevant, ensuring that your sales and marketing teams always have fresh, accurate info to work with.

2. Avoid Data Hoarding

It can be tempting to collect as much information as possible, but data hoarding can actually make your CRM harder to use. 

More data isn’t always better—what matters is collecting the right data that your team can actually use. 

• Do you really need to store every bit of information?
• Or just the data that helps your sales, marketing, and customer service teams improve customer relationships?

Because, focusing on storing only useful data, you reduce clutter and make it easier for your team to access what’s important. 

Plus, it helps with data security, as you’re less likely to store sensitive information unnecessarily.

3. Usability

Make sure your CRM data is usable and fits seamlessly into your team’s daily workflows. 

If the data is difficult to access or doesn’t align with your team’s processes, it’s less likely to be used effectively. 

• Work with your team to understand how they use CRM data. 
• Ensure that the way the data is organized makes sense for their tasks—whether that’s customer service following up on inquiries, or sales teams tracking leads.
• This improves overall performance and ensures that your CRM investment delivers real value.

4. Use Data Quality Tools

Clean data means more reliable reporting and better customer interactions.

Duplicate records are one of the biggest pain points when managing CRM data. Not only do they clutter the system, but they can also lead to confusion and inconsistent customer interactions. 

Fortunately, there are tools that can help automatically detect and merge duplicate entries, ensuring that your data remains clean and accurate.

• Implement data cleaning tools within your CRM that flag duplicate records or inconsistencies. 
• Use tools designed to merge these records without losing valuable information.

Feel free to visit our blog archives! 

The Bottom Line

When CRM data is leveraged thoughtfully, it transforms raw information into actionable strategies, allowing you to stay competitive and responsive to customer needs. 

Also, maintaining your CRM data isn’t a one-time job—it’s an ongoing process that requires regular attention. Strive to keep your CRM data clean, organized, and ready to serve your business. 

Your teams will thank you for it, and your customer relationships will benefit from more consistent and accurate interactions. Ensure the data is collected accurately and maintained meticulously. 

Are you ready to boost profitability but also foster a customer-centric culture that ultimately leads to lasting success?

Whether you're managing customer service across multiple platforms or looking to elevate your CRM within your enterprise, Omind delivers an unparalleled customer experience.

Schedule a demo with us today! We ensure that all sensitive information is well-protected, giving you peace of mind in the security of your data.