A customer relationship management system (CRM) is a critical tool for any real estate agent. Yet, so many agents both new and experienced lack a system to keep a detailed record of their customers and business efforts.

A CRM is more than an address book. The information you collect from your transactions will help you run a more efficient and profitable business. If you are not using a CRM, or if you are not using your CRM to its full potential, here are four surefire ways your CRM will help you grow your business:

1. Use your CRM to keep in touch with your past customers.

The foundation of an agent's business is built on customer referrals. At the basic level, your CRM will help you keep track of your past customers. Using a CRM to manage your past clients will allow you to continue to build relationships with them through regular contact and your marketing efforts.

2. Find out the types of clients you work with.

You need to know where your business is coming from. Your CRM will allow you to find trends in the types of clients that you work with. Do you work with more buyers or sellers? Do you work with any corporate clients or investors? When you know this information, you can make sure you are spending your marketing dollars targeting the right clients. Additionally, if you are looking to work with different types of clients, you can easily identify where to spend your money.

3. Do you know your average sales and listing conversation rates?

You do not have to add more clients to your database to make more money. Many times, making more money can be achieved by shifting the average sales price point which you are working in. If you know how many listing appointments you take versus how many listings you secure, you can look at building your skill set to increase your listing conversation rate. Both efforts will increase your bottom line.

4. How long does it take from prospect to close?

Most who buy or sell a home enter the real estate world as a prospect. Most prospects are not immediately ready to act with buying or selling a home. Keep track of when your clients enter your business as a prospect and end as a closed transaction. When you know on average, your leads take three or six months to move through the real estate process, you can better manage your finances and the expectations you have of your clients and your business.

Your CRM does not have to be complicated or expensive to be effective. Many systems can range from $10 per month to $1,000 or more depending on your business needs. Overwhelmed by the thought of utilizing a CRM? If you are new to the idea of using a CRM to track your business efforts, start by entering your clients into a simple Excel spreadsheet. You can move your client database to most systems using the Excel program. Regardless of the system you choose, using a CRM will help you identify ways your business can work more efficiently and become more profitable.

Kellie Tinnin holds a full-time position as the Training Administrator for the Greater Albuquerque Association of REALTORS® in Albuquerque, NM. Kellie embodies a passion for the real estate industry. Before accepting the position with GAAR, she was a top-producing real estate broker and real estate trainer. On a personal note, Kellie is one of those “dog” people, and her English Bulldog Momo is her fur child. When she is not working, she can be found relaxing with Momo and her husband, exploring many of the excellent eateries and attractions that Albuquerque offers.