Understanding CRM Terminology

Campaign- A Campaign is a marketing effort to increase sales through a set of marketing activities. The goal of this effort is often to generate new leads and help convert them to new sales. A campaign can have other goals, e.g. improve the awareness or brand of the company. A CRM system can help manage, execute and monitor marketing campaigns.

Leads- A lead is a prospective customer. In a CRM system, prospective customers are first entered into the system as leads. You may collect leads from your marketing events such as conference, advertisement, trade show etc. The goal is to convert a lead into a customer. Not all leads will result in a sale and be converted into a customer.

Opportunities- When you determine a lead could generate a potential sale, the Lead will be converted to a Opportunity. In addition, an Account and Contact entries for this lead will be automatically created in the CRM system. Each business will determine when a lead should be converted to a opportunity.

For example, a business may decide a lead that requests a quote can be converted to a Opportunity.

The Lead entry will be deleted to avoid confusion and duplicate entries.

All the information collected for the Lead is still available in the CRM system, but will now be maintained as Account, Contact and Opportunity.

Account- An Account is a customer account record for a customer or prospective customer. In this you maintain all the information about account.

Contact- A Contact is the contact information for a given customer or prospective customer.  One Account may have many contacts.

Quotes- A Quote is record information for a sales quotation, i.e. price, quantities, and other terms, for a potential sale to prospects. The CRM system supports you in the creation of quotes for potential customers. A quotation can be created for an Opportunity, for easy and automatic transfer of the customer data to the quote.

Purchase Order- A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. The Purchase Order is a formal notification and approval for a customer order, and kicks off the next stage in the sales process when the PO is received.

Invoice- An invoice is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. Once a quotation is approved, an Invoice can be created based on the Quote.

Product- A Product is a business offering from a business to it’s customers. A CRM system allows a business to record it’s Products and related information so that sales staff and other CRM users can use product information fully and correctly in their business activities.

Vendor- A Vendor is a supplier of a product.

Price Book: A Price Book is a named collection of products and pricing created to serve a specific purpose, e.g. a segment of the market. Price Books in a CRM system allow sales staff to more easily quotes prices when serving different types of customers that need differentiated pricing strategies.

Case or Service Request or Ticket- A Case is a record of information related to a customer issue. A CRM System, as well as many other Help Desk and Issue Tracking systems,  use Trouble Tickets to capture, track, and manage, customer issues or service requests.

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