Difference between SFA and CRM

What are the differences between SFA and CRM?

In this article, I will explain the differences between SFA and CRM.

Table of Contents

1. what is CRM

2. SFA and CRM

3. Concept of CRM

4. Key Points of CRM Systemization

5. CRM System

What is CRM?

CRM is a management approach that aims to maximize the value and effectiveness of a relationship between a company and its customers by building a relationship of trust with them over the medium to long term, thereby improving the profits of both the company and its customers.

CRM is an acronym for "Customer Relationship Management," the system to achieve this is generally called CRM.

SFA and CRM

SFA is an abbreviation for Sales Force Automation, a concept to improve the efficiency of sales activities, and it can also refer to a system to realize it. SFA has been attracting attention in the U.S. since the 1990s. SFA has been attracting attention in the United States since the 1990s.

SFA has been gaining attention in the U.S. since the 1990s. For salespeople in U.S. companies, where the turnover rate is high, establishing and managing the sales process makes it possible to achieve uniformity and visibility in sales activities. For example, SFA can manage whether a salesperson has explained a product to a customer or submitted a quote and the progress of business negotiations through daily sales report functions.

In other words, SFA can be said to be a concept or system for the automation of sales activities. Since then, companies have utilized the customer database centrally managed by SFA to achieve database marketing and other functions.

It has evolved from a sales tool to a CRM that supports overall sales activities, including marketing such as analyzing customer lists, extracting potential customers for new proposals, and implementing campaigns.

In the past, CRM systems, which strengthen relationships with customers, and SFA systems, which manage the sales process, were two separate systems. Recently, the boundary between the two has disappeared, and SFA systems are now positioned as a function of CRM systems.

Concept of CRM

In the case of companies that sell general consumer goods, CRM systems enable companies to provide more attentive service and guidance by centrally managing customer information, such as the past purchase history of individual customers and visits to websites.

In addition, by linking CRM and call centers, customer inquiries and complaints can be linked to the next customer order and prevent customers from leaving the company.

In the case of corporate sales, it is possible to focus on clients with whom you should have a close relationship and to conduct sales activities by checking the status of key personnel in the company in advance.

In this way, CRM can be said to be a system for increasing customer satisfaction and maximizing customer loyalty by providing different products, services, and information according to the different preferences and each customer's needs.

This makes it possible to optimize customer retention and expansion within the customer base. In other words, CRM is a system that aims to maximize the customer's LTV (Life Time Value) or the customer's disability value.

Key points of CRM systemization

CRM is easy to implement, and many companies are now implementing CRM. However, it is also true that few companies have successfully utilized and established CRM.

Some companies simply use CRM as a daily report management system and use it only for forecasting sales. CRM is a simple tool, and the company using it needs to have the knowledge, ideas, and strategies for CRM. Here are some key points for successful CRM system implementation.

1. Accumulate data

A company-wide customer master that stores customer attributes (age, gender, purchase history, contract status, etc.) must be in place. A mechanism for collecting this data must be in place throughout the company. Without this, it is impossible to understand the customer properly.

2. Company-wide efforts

CRM requires a one-to-one relationship with the company from the customer's point of view. Information such as inquiries to call centers, access to face-to-face sales, attending seminars from websites, and purchasing from EC sites must be centralized.

This allows the company to have a centralized understanding of customer behavior no matter which contact point the customer uses. CRM requires a company-wide approach that transcends internal departments.

3. Realization of PDCA cycle

In CRM, it is important to repeat the process of data collection, analysis, and utilization. A CRM system should not simply be a repository of information from customers. A culture of analyzing the data, formulating hypotheses, and verifying them needs to take root in the company. For example, in the sales department, there is a high probability that a customer who has purchased this product will purchase another product in addition, so we should propose.

4. Promotion by segment

A company that has implemented CRM can obtain all kinds of information from the attributes of its customers. For example, when a new product is launched, the purchase probability may be increased by informing customers who have already purchased the existing product. In this way, the CRM system should be able to realize One-to-One marketing rather than mass marketing by identifying the target attributes.

5. Flexible and scalable system

It is necessary to be able to handle data from all corporate activities to realize CRM. In the call centers, it is strictly prohibited to keep customers waiting, so the system must be able to respond quickly and without system stoppage.

In addition, most companies that can implement a CRM on their own will consider integrating it with sales management systems, e-commerce, and ERP. In other words, CRM needs to be a system that is not only high performance and reliable, but also flexible and scalable.

CRM system

In the past, most companies developed their CRM systems, but nowadays, most companies use products offered as SaaS. CRM systems also vary widely, with some offered as a package with e-commerce and ERP and others with intra-company SNS functions.