Business Automation and Software Blog

The Difference Between CRM Strategy and Tactics—And Why You Need Both

Posted by Robert Baran on Wed, Apr 01, 2020 @ 11:00 AM

When referencing CRM—or, customer relationship management—most people will likely think of a software solution that enables them to track customers along their journey from prospect to purchase and maintain up-to-date contact information. But treating CRM as only a software solution misses a vital point. CRM is the tool by which you acquire, retain, and create loyal customers.

When it comes to employing CRM, there’s often confusion between strategy and tactics. Either the terms are mixed up, or they’re lumped together, when in reality, they’re vastly different. How you choose to approach both CRM strategy and CRM tactics can make a big difference in the success of your customer relationship management.

The Why (CRM Strategy) and The How (CRM Tactics)

The big difference between strategy and tactics is the questions they answer.

Strategy almost always asks why:

  • Why do we need to capture this data?
  • Why will customers care about this email?
  • Why is this approach better than our competitor’s approach?

While tactics answer the “how” questions:

  • How do we add new data fields to the CRM system?
  • How do I integrate social media into the CRM?
  • How do I reach 200 prospects with this email?

Strategy typically focuses on the underlying reasons, which flow up into an overarching strategic approach to customer relationship management. This approach may take a longer time to implement and cultivate, but the relationships built from a strategic approach tend to be built on a solid foundation over multiple transactions and communications.

On the other hand, tactics can be rapidly deployed and may get a quick hit in terms of sales or other metrics. But single tactical campaigns disconnected from an overarching strategy will often fail to build mindshare among customers. Customers can’t connect the mental dots if tactical campaigns are initiated without a strategy. You may see a quick hit or bounce in sales, but tactical campaigns may contribute to customer churn and increased acquisition costs, making them pricey in the long term.

Building a CRM Strategy

For best results, you’ll want to build your CRM strategy before choosing a CRM software solution. Consider all the ways customers currently contact your company for information, and how often conversations turn into relationships and sales. This forms the basis upon which you’ll build your CRM strategy, discovering the best ways to cultivate customer relationships and build long-term connections that lead to repeat sales.

CRM is a strategy—not a software—enacted through tactics that support the overarching strategy. Once you understand this difference and begin building out your strategy, you can begin looking for the software that supports your CRM goals and the partner who can help you achieve them.

Chicago-based software provider PositiveVision has been helping businesses connect with the right software solutions, like SYSPRO, for decades. SYSPRO’s CRM system is web-based and mobile-friendly, and connects seamlessly with SYSPRO’s ERP for a complete overview and insight of your business. With integrated modules, real-time customer, order, and invoice data, your SYSPRO CRM and ERP solutions make a powerful team for your business success.

Let PositiveVision get you connected with a SYSPRO CRM software solution that fits both your strategy and your tactics. Contact one of our experts now.

Topics: CRM Strategy