Why Different CRM Practices Exist

Customer Relationship Management (CRM) is not a one-size-fits-all concept. How you manage relationships depends on:

The type of customer (individual vs. business)
The industry you operate in (banking, healthcare, retail, etc.)
The nature of relationships (long-term partnerships vs. quick transactions)

Understanding these differences helps businesses choose the right CRM approach for their unique needs.

B2B vs. B2C CRM

B2B CRM (Business-to-Business)

Customers = Other businesses
Fewer clients, but deals are larger and more complex
Sales cycles are longer (weeks to months)
Involves multiple decision-makers (procurement, finance, operations)
Focus = Nurturing long-term partnerships

Example: A SaaS company selling enterprise software to corporations.

CRM tracks: Stakeholder mapping, contract renewals, deal stages, account history.

B2C CRM (Business-to-Consumer)

Customers = Individual consumers
Higher volume of customers but smaller ticket sizes
Sales cycles are shorter (minutes to days)
Buying decisions are emotional and fast
Focus = Personalization and customer experience

Example: An online fashion retailer.

CRM tracks: Purchase history, preferences, loyalty programs, abandoned carts.

Industry-Specific CRM

Every industry has unique requirements. Let’s break down a few examples:

Banking CRM

Tracks customer portfolios (savings, loans, investments)
Compliance and regulatory tracking are crucial
Focus on cross-selling (e.g., offering credit cards to loan customers)

Example: Personalized alerts about mortgage eligibility.

Healthcare CRM

Manages patient records, appointments, follow-ups
Tracks doctor-patient interactions securely (HIPAA/GDPR compliance)
Focus on care continuity and trust

Example: Reminders for health checkups, lab results follow-ups.

Retail CRM

Tracks purchase behavior, loyalty points, and shopping trends
Heavy focus on personalized promotions and offers

Example: Sending targeted discounts based on past purchases.

Hospitality CRM

Manages guest bookings, preferences, and feedback
Focus on customer experience and repeat visits

Example: Remembering a guest’s preferred room or meal choice.

Note: Industry-specific CRM is often customized with integrations (ERP, billing, POS, etc.) to meet sector demands.

Relationship-Driven vs. Transaction-Driven CRM

Relationship-Driven CRM

- Focus = Building long-term trust and loyalty
- Used in industries where repeat business matters

Examples:

- B2B SaaS → Ongoing subscriptions, renewals
- Healthcare → Lifelong patient-doctor relationships

Key CRM features: Account history, touchpoint tracking, customer success management.

Transaction-Driven CRM

- Focus = Optimizing individual sales events
- Used in high-volume, low-margin industries