CRM vs Membership Management System - What’s the difference?

4 min read
January 12, 2023

The primary difference between a CRM (Customer Relationship Management) and a Membership Management System is the focus of each system.

A CRM is primarily focused on customer relationships and tracking customer interactions, such as sales and marketing activities, while a Membership Management System is focused on managing a membership organisation, such as associations, clubs, charities and nonprofits.

A CRM typically includes features such as contact management, lead management, sales tracking, marketing automation, customer service and analytics.

A Membership Management System typically includes features such as member profiles, membership directories, event management, payment processing, email marketing, website building and reporting.

In addition, a CRM is often used to track potential customers or leads and is usually used to generate sales, while a Membership Management System is used to manage existing members and is usually used to maintain relationships with those members.

Benefits of using a CRM

A Customer Relationship Management (CRM) system is an invaluable tool for businesses of all sizes.

It provides a centralized platform to manage customer relationships and track customer data, allowing you to better understand your customers and their needs.

A CRM can also help streamline processes and increase efficiency by providing an organized way to store customer information, track sales leads, and analyse customer behaviour.

The following are some of the key benefits of using a CRM:

1. Improved Customer Service: A CRM system can help you provide better customer service by quickly identifying customer needs and providing tailored solutions. You’ll be able to access important information quickly, such as past purchases or current inquiries, enabling you to respond more efficiently.

2. Increased Sales: By tracking customers’ past purchases and interests, you can better anticipate their future needs and provide customised offers that will lead to increased sales. Additionally, you can use analytics from the CRM system to identify trends in customer behaviour that can help inform your marketing strategies.

3. Better Data Insights: With data stored in one place, it’s easier to analyse patterns in customer behaviour and make decisions based on insights from the data. This helps you identify opportunities for growth, as well as areas where there may be issues that need addressing.

4. Automated Processes: A CRM system automates many manual tasks associated with managing customer relationships such as sending emails or tracking sales leads, freeing up time for other tasks or projects. This makes it easier for employees to focus on more important tasks instead of mundane administrative duties.

5. Cost Savings: By streamlining processes and automating certain tasks, a CRM system can save businesses time and money in the long run as they no longer have to invest resources into manual processes or hire additional staff members to manage them.

Common mistakes made by CRM users

While Customer Relationship Management (CRM) systems offer a variety of features, users often experience difficulty in using the system, especially if they lack technical proficiency or resources.

This can result in one of the most common mistakes made when using CRMs: failing to take advantage of automated features.

Many CRMs such as Salesforce, Hubspot and Pipedrive are equipped with automation capabilities that can help simplify tasks and optimise efficiency; however, not utilising these features may lead to manual processes that require more time and resources.

Benefits of a Membership Management System

A membership management system is a great way to keep track of your members and their activities. It can help you manage your member’s information, track their payments, communicate with them more effectively, and provide better customer service.

Here are some of the benefits of using a membership management system:

1. Automation – Automation allows you to streamline processes such as onboarding new members, tracking payments, and sending out communications. This helps save time and effort by eliminating manual tasks.

2. Data Analysis – A membership management system allows you to collect data on members’ behaviour and preferences so that you can better understand them. This data can be used to improve services or create targeted campaigns that will be more effective in engaging members.

3. Improved Communication – With a membership management system, it’s easier to stay in touch with your members and ensure they receive important updates or notifications about events or changes within the organisation.

4. Increased Security – By using a secure platform for managing member information, you can reduce the risk of data breaches or fraud.

5. Cost Savings – Automating processes with a membership management system eliminates the need for manual labour, which reduces costs associated with managing memberships and increases efficiency overall.

Why should you use a membership management system over a CRM for your community

A membership management system is specifically designed to manage memberships, while a CRM (Customer Relationship Management) system is designed to manage customer relationships.

Therefore, when it comes to managing memberships within a community, a membership management system provides a much better solution than a CRM.

A membership management system can provide features such as automated member onboarding and renewal processes, tailored membership tiers and pricing options, and streamlined communication with members.

It can also help you track member activity, gain insights into your members’ preferences and interests, and gain valuable feedback from them.

All of these features are essential for building strong relationships with your members and providing them with the best possible experience.

In addition to providing more specific features for managing memberships, a membership management system is also more cost-effective than using a CRM. This is because it requires fewer resources in terms of staff time and money to set up and maintain.

Furthermore, since it is specifically designed for managing memberships within communities, you can be sure that all the necessary tools are available for success.

Ugenie as a Membership Management Tool is an ideal choice for membership management due to its user-friendly interface and cost-effectiveness. It is easy to set up and use, with a simple member management interface, data reporting and customisability options.

Ugenie also provides powerful tools such as automated billing, event management, and automated emails, which make managing memberships easier and more efficient.

Ugenie's pricing structure is straightforward and affordable, making it an excellent option for membership organisations of all sizes. With Ugenie's robust features and low costs, membership management has never been simpler or more cost-effective.

Read our blog on the 7 best membership management systems here

Rounding Up

A membership management system is a better choice than a CRM for managing an online community due to its ability to provide more comprehensive features such as automated payment processing, membership tiers, and automated communications as well as many other features built for community/membership owners.

Discover how Ugenie can streamline the operations of your membership organization and save you time in managing members by scheduling a demo.

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