What is a CRM Database?
A CRM database is a collection of all information about a customer. This includes static data such as their age, gender, and date of birth, alongside dynamic data like interaction history with the customer.
Everything from the first interaction with a lead or customer is recorded in the CRM database. This information is then processed and analyzed to produce meaningful reports.
These reports come in handy when prioritizing lead management, customer service, automating processes, and digging into insightful analytics for decision-making.
The Different Types of CRM Databases
We can classify CRM databases into three types based on how they store data. Here’s a quick overview of each one:
1. Open Source CRM
These CRMs have their source code open i.e. available for general public use, which makes it easy to customize. This is ideal for teams on a budget, as most open-source CRMs are pretty affordable. Plus, it’s your best bet if you’re after a highly customized CRM solution.
2. On-Premise CRM
These are traditional CRM systems, where the entire infrastructure, including hardware, OS, CRM data, and software, are stored on your own premises. All CRM data will be stored on your own servers, giving you complete control over them. This is more expensive than other systems.
3. Cloud-Based CRM
These CRM systems host your data on the cloud on the provider’s servers. You can access this data from anywhere with an active internet connection, making it ideal for scattered and remote teams. This also saves you from hefty upfront setup costs.
What Do CRM Databases Include?
A CRM database is the epicenter of all business information. This information might differ from company to company, but here are some common things CRM databases include:
- Demographic information about the customer, such as age, gender, income, and education, for example.
- Customer purchase history that gives your sales reps valuable insights into a customer’s buying habits.
- Information about customers’ interactions with your business, whether it’s with your sales or customer support team.
3 Reasons Why Businesses Need a CRM Database
Modern businesses can’t survive without a CRM system. With data becoming the new gold, you need a CRM system to make the most out of it. Here are some benefits of CRM databases:
A CRM database contains valuable information about a business’s customers, such as their age, gender, preferences, buying habits, and previous interactions, among others.
This data helps sales and marketing teams understand their customers better and design marketing campaigns accordingly.
There are several CRM platforms, like Monday CRM and Salesforce, which help businesses easily record customer data and then process it to generate various reports, which facilitate data-driven decisions.
Is SQL a CRM database?
What is the difference between a database and a CRM?
Where is CRM data stored?
- Open Source vs. Closed Source Software (GCFGlobal.org)