What is a CRM?

Key Features of a CRM System

While a CRM system is considered a database of customer information, it’s also an essential tool that can help you streamline processes, personalise communications, and drive sales. We’ve included some key features below: 

1. Contact management

At its core, a CRM stores and organises customer data in one place, making it easy to track contact details, interaction history, and customer preferences. This ensures that businesses always have up to date and easily accessible information on their customers, whether it’s a hotel tracking a guest’s room preferences or a restaurant logging a regular customer’s favourite dishes.

2. Sales pipeline tracking

For businesses that sell services or high value products, a CRM helps manage leads and sales opportunities by tracking where each potential customer is in the buying journey. This feature is particularly useful for event venues, hotels, and high end restaurants, where bookings and reservations require multiple steps. With a CRM, you can see who has inquired, who needs a follow-up, and which leads are close to converting, ensuring no opportunity is missed.

3. Customer segmentation

A CRM allows you to group customers based on different factors, such as purchase history, location, interests, or spending habits. This is incredibly valuable for targeted marketing campaigns. For example, a hotel can send exclusive offers to past guests who have stayed in their luxury suites, or a restaurant can promote special deals to customers who frequently order a specific dish, giving you ways to pinpoint your marketing and appeal to individuals. 

4. Automation (emails, follow-ups, tasks)

One of the most powerful aspects of a CRM is automation. Your business can set up automated email sequences, follow-up reminders, and task notifications, saving time and ensuring consistent communication. For example, a CRM can automatically send a thank you email after a guest’s stay or remind a sales team to follow up with a lead who inquired about private dining.

5. Reporting & analytics

Another fantastic tool is how CRM provides valuable insights into customer behaviour, sales trends, and marketing performance. Your business can track which marketing campaigns are driving bookings, which customer segments are most engaged, and how well sales teams are converting leads. This data driven approach allows you to make smarter, more strategic decisions.

6. Integration with other tools

Most modern CRMs integrate seamlessly with other business tools, such as email platforms, social media, booking systems, and payment processors. This ensures that businesses can manage customer interactions across multiple channels from a single dashboard, improving efficiency and ensuring that no customer inquiry or booking request slips through the cracks.

How Does a CRM Work?

A CRM system works by collecting, storing, and using customer data to help businesses manage interactions and improve relationships. It centralises customer information, making it easy for businesses to track every interaction, personalise communication, and automate tasks. Whether it’s logging inquiries, managing bookings, or sending follow-ups, a CRM streamlines processes and ensures no customer is overlooked.

Basic CRM workflow

1. Data collection: A CRM gathers customer information from multiple sources, including website forms, email inquiries, social media interactions, past purchases, and in-person visits.

2. Data storage: All information is securely stored in a centralised database, accessible to different teams (e.g., sales, marketing, customer service).

3. Customer interaction tracking: Every time a customer engages with the business (such as making a booking, calling for information, or signing up for emails), the CRM logs and tracks these interactions.

4. Automation & follow-ups: The system automates tasks like sending confirmation emails, reminders, and post-visit surveys, ensuring smooth communication.

5. Personalised customer engagement: Businesses can use CRM data to create targeted marketing campaigns, special offers, and loyalty programs, leading to better customer retention.

Benefits of Using a CRM

1. Improved customer relationships

One of the biggest advantages of a CRM is its ability to personalise customer interactions and improve communication. With a CRM, your business can store detailed customer profiles, including past interactions, preferences, and purchase history. This allows teams to tailor their messaging, remember customer details, and provide a more personalised experience.

Example: A CRM can help a hotel remember a guest’s room preference and past stays, allowing staff to offer a more customised experience upon their return.

2. Increased sales and conversions

By tracking leads, managing the sales pipeline, and automating follow-ups, a CRM ensures that businesses never miss an opportunity. Sales teams can see where each lead is in the process, send timely follow-ups, and prioritise high value prospects. Automation features, such as reminders and email sequences, help nurture leads and drive conversions.

Example: A CRM can automatically send reminders to a restaurant’s event team to follow up with inquiries about private dining, ensuring no potential booking is lost.

3. Better data and insights

CRMs provide real-time reporting and analytics, helping businesses track customer trends, measure sales performance, and optimise marketing efforts. With detailed insights, businesses can see what’s working and where improvements can be made.

Example: A CRM can show a spa business which services are most frequently booked and help them tailor marketing campaigns to promote their most popular treatments.

4. Enhanced team collaboration

Because a CRM centralises customer data, multiple departments (sales, marketing, and customer service) can access the same information. This improves team collaboration, ensuring everyone is aligned and working with up to date customer insights.

Example: If a customer contacts support with an issue, the CRM allows the customer service team to see past interactions with sales or marketing, enabling them to resolve the issue faster and more effectively.

Types of CRM Software

Not all CRM systems are the same. Different types cater to specific business needs, whether it's streamlining operations, analysing customer data, or improving team collaboration. Choosing the right CRM depends on your business goals, size, and customer engagement strategy. Here’s a breakdown of the three main types of CRM software and their key functions.

1. Operational CRM – automating and streamlining customer interactions

An Operational CRM is designed to automate daily processes and improve customer interactions, which is particularly useful for hospitality businesses, sales teams, and customer service departments. It helps businesses manage lead tracking, follow-ups, and customer inquiries more efficiently by automating routine tasks such as appointment scheduling, booking confirmations, and email follow-ups.

Best for: Hotels, restaurants, and venues looking to streamline guest interactions, manage reservations, and automate marketing efforts.

2. Analytical CRM – data driven insights for smarter decision making

An Analytical CRM focuses on gathering, organising, and interpreting customer data to improve business strategies. It provides in-depth reporting, customer trends, and predictive analytics, allowing businesses to understand customer behaviour, track sales performance, and optimise marketing campaigns. This type of CRM is ideal for businesses that rely on data-driven decision making to improve customer experience and maximise revenue.

Best for: Hospitality brands and marketing teams looking to track customer spending habits, measure campaign performance, and personalise offers based on data.

3. Collaborative CRM – improving team coordination and communication

A Collaborative CRM ensures that sales, marketing, and customer service teams work together seamlessly by sharing customer data and interaction history. This type of CRM is particularly useful for businesses where multiple departments engage with the same customer base, ensuring that all interactions are consistent and well-informed.

Best for: Businesses where customer service, sales, and marketing teams need to coordinate efforts for a seamless customer experience.

Popular CRM Platforms

• HubSpot CRM: A user-friendly, scalable CRM with strong marketing automation features.

• Salesforce: A powerful, enterprise-level CRM with advanced analytics and automation.

• Zoho CRM: A cost effective solution with sales automation and reporting tools.

• Pipedrive: A CRM designed for sales pipeline management and lead tracking.

• Microsoft Dynamics 365: A flexible CRM that integrates seamlessly with Microsoft Office tools.

How to Choose the Right CRM for Your Business

1. Consider your business size and needs

Different businesses require different levels of CRM functionality. A small boutique hotel or independent restaurant might only need basic contact management and email automation, while a large hospitality group or event venue may require detailed analytics, sales pipeline tracking, and multi-location customer data management.

• Do you need a CRM primarily for sales, customer service, or marketing automation?

• Will multiple teams (e.g., reservations, events, marketing) be using the CRM?

• Do you need a CRM that can track customer history and preferences for personalised service?

2. Look at ease of use and integrations

A CRM should streamline your processes, not make them more complicated. If the system is too complex, teams might struggle to use it effectively, leading to low adoption rates. Additionally, it’s important to check whether the CRM can integrate with your existing tools, such as your email marketing platform, booking system, payment gateway, or social media accounts.

• Is the CRM user friendly and easy to navigate?

• Does it integrate with email marketing tools (Mailchimp, HubSpot), reservation systems, or POS software?

• Can it sync with social media for customer engagement tracking?

3. Pricing and scalability

CRM pricing can vary from free basic plans to enterprise-level solutions costing thousands per year. It’s essential to choose a CRM that fits your budget but also has the ability to scale as your business grows. Some platforms charge based on the number of users, while others operate on a feature-based pricing model.

• What’s the monthly or annual cost, and does it fit your budget?

• Can the CRM scale with your business, allowing you to add more users or features as you grow?

• Are there hidden costs (such as extra fees for integrations or customer support)?

4. Customer support and training

Even the best CRM won’t be effective if your team doesn’t know how to use it properly. Some providers offer comprehensive customer support, onboarding assistance, and training resources, while others rely on self-service help articles.

• Does the CRM offer 24/7 customer support via phone, chat, or email?

• Are training sessions, video tutorials, and knowledge bases available?

• Is onboarding assistance included to help with implementation?