CRM interview Questions and Answers
CRM Interview Questions and AnswersThis section covers commonly asked CRM Interview questions and answers. The types of questions covered are general, conceptual, knowledge and experience based. You can also find interesting examples and sample answers with each question.
Who are these CRM Interview Questions useful for?These questions on nursing will be very useful for all CRM professionals aspiring to join the workforce as CRM Manager, CRM consultant, CRM architect etc. Both freshers and experienced candidates will be benefited by these questions.
1. What is CRM?Answer:
CRM is a software application and its full form is Customer Relationship Management. It is a tool which helps to develop a relationship with the customers. It helps to make contacts, sales processes, productivity, and workflow more manageable.
This software has customer details such as their contact number, address, email address, etc which are confidential. These details can be used only by the company. The software shows what relationship is there between the company and the customer.
It helps in understanding the target audience better which helps to improve company's profitability.
2. What are the benefits of using CRM?Answer:
Here are some of the important advantages of CRM:
i.) Stores vast information an organized way, properly categorized for future reference.
ii.) Task tracking:Lets you fix appointments and alerts you about the upcoming task. Allows synchronization of data with calendars for timely reminders.
iii.) Efficient management of employees' performance, progress assisting you with recognizing training needs.
iv.) Selling opportunities:With information about customer's likes and preferences you get more selling opportunity.
v.) Helps in analyzing data:It can prepare automatic reports which saves a lot of time.
vi.) Improves efficiency of teams: Stored information can be easily accessed by different teams. Each team can get valuable information improving its efficiency and productivity.
vii.) Improves customer service: Information about customers buying habits, preferences, and history allows you to easily find solutions to the customer's problems. Check the database for potential issues and providing a solution helps in improving customer experience
viii.) Customer retention:Better customer service implies improved customer retention.
3. Are there any disadvantages of using CRM?Answer:CRM helps to keep a track of customer information. It has a lot of advantages but there are a few disadvantages. Here are a few:
i.) Transition from manual to automatic processes may be cumbersome.
ii.) Keeping the backup of information becomes expensive.
iii.) In large companies, you need to have specialized training for employees. Training for managers differs from the training provided to the regular staff as there are specialized functions for managers. Training can take up a few days and rolling out schedules at times is difficult for large companies.
iv.) If the CRM application is not stable, sometimes it can result in loss of data and retrieving records becomes difficult.
4. Why should a company use CRM?CRM is a tool which helps in analyzing all of the interactions with your customers. CRM helps to make your business more efficient and increase the productivity of the employee. Here are a few reasons why you need CRM for your business.
i.) Effective reporting :CRM helps you to understand the activity of every executive. This will help you to identify if any sales executive needs help.
ii.) Helps to grow business: CRM helps to identify new product requirement in the market. It can be used by the employees to cross sell and up sell.
iii.) Ensures best sales practice: CRM helps you to provide consistently high quality service to the customers.
iv.) Helps to understand customers better: CRM captures information about customer's behavior, their likes, and dislikes, preferences, and needs.
v.) Reduces workload and overhead costs: Most of the work is automated which reduces the administrative overhead cost and the work is performed faster.
5. How do you know the buyer's persona?Answer:
The buyer's persona helps you to target the desired customers, make product improvement and helps to understand the real needs and concerns of the customers. It also helps you to create content that you can be used towards your prospects.
In order to know your buyer's persona you need to keep in mind the following:
i.) Identity your buyers: Use demographics such as their age, gender, etc.
ii.) Know what they need: Try to understand the challenges they are facing and how your product or service help them.
iii.) Identify what is important to them: When selecting a leader what do the buyer looks for- expert advice, technology leaders, etc.
iv.) Identify their source of information.
v.) What are their goals for making the purchase decision?: It can be price, support, service etc.
6. How will you improve your CRM strategy using Social Media?Customer relationship management is high priority for most of the companies but most of them are leaving behind social media. By using social media CRM tools you can provide a better experience to your customers.
Here are a few ways through which you can improve your CRM strategy with social media:
i.) Keep an open eye on your customer's journey and try to know the engagement metrics which helps to build a long-term relationship. Connect with your customers at each step of the journey. Connect so they remember your brand.
ii.) Do not neglect the negative comments.A CRM strategy needs to understand the buyer's journey at all stages.
iii.) Have a powerful Social CRM tool that allows your brand to get all the information about the customers and the conversation history every time you reply to a complaint.
iv.) Look for keywords and hashtags which will help you get more potential customers who you might not have come across while using traditional sales funnel.
v.) Keep a consistent brand experience across all your social channels. Make sure you maintain your brand voice on all the channels.
7. What are the different types of CRM?Answer:
There are three types of CRM:
i.) Operational CRM: Operational CRM helps in the efficient running of business processes which includes sales automation, marketing automation, and service automation. The main focus of operational CRM is to get leads and convert them into customers. It also ensures that you capture all the customer details and provide service throughout the customer life cycle.
ii.) Analytical CRM: Analytical CRM helps to determine the best way to serve customers. In this application, the main focus is on data analysis. It analyzes the data and helps management to take better decision. It also helps to build a strong customer relationship.
iii.) Collaborative CRM: This application enables an organization to share customer's information with various teams such as sales, marketing, etc. This is also known as Strategic CRM. The aim of this CRM application is to use the information to increase sales by acquiring new customers and gain customer loyalty.
8. What do you understand by On-premise CRM?Answer:
On - premise CRM is the case where the CRM is hosted and run by the systems within the company.
9. How is On-premise CRM different from Cloud CRM?Answer:
In Cloud CRM, the software and data are both hosted on Cloud. They are outside the organization.