Smart business owners and managers know that the two pillars for a successful business are finding and retaining customers and expanding their business. The two go hand in hand. No matter what size your business is, you can’t afford to ignore the importance of having a customer relationship management (CRM) strategy. Have you ever lost important customer contact information? Have you missed a rare opportunity to connect with a customer? Or, have you noticed your best customers seem to have migrated elsewhere? This is why your business needs CRM.
What Is CRM?
At its most basic, CRM is a system of record keeping that ensures that important information about your customer base doesn’t slip through the net. It could be as simple as a database, a spreadsheet of contacts, or a sophisticated, tailor-made system. Regardless of the method you put in place, if you approach it effectively, CRM can boost customer retention, increase sales, improve profit margins and reduce your marketing expenses.
Why Your Business Needs CRM
The more opportunities that you provide potential customers to conduct business with your company the more successful your company will be. One of the best ways to achieve this is to open multiple contact channels such as direct sales, online sales, utilizing agents and franchises, and other lines of potential contact. However, the more channels you open, the more important it is to stay on top of and manage the interaction you have with your customer base.
CRM will help your business gain insights into your customer’s behavior to modify your business operation to ensure that they are being served in the best possible way. In short, being better able to recognize the value of your customers and capitalize on and benefit from improved customer relations is the reason why your business needs CRM. Whether you are a small, medium or large business, customer relationship management can help you track the details that are key to growing your business. Here are the top 7 reasons why your business needs CRM:
1. Know Your Customers
With CRM, you’ll know your customer’s buying habits, preferences and opinions. By having access to their sales history you’ll be able to identify buying trends and when to contact them with offers and incentives. With up-to-date contact information you’ll know when a customer has lapsed. Likewise, you’ll be able to reach out to win them back. CRM will allow you to analyze your customer base and identify your most valuable customers, and form strategies to grow those relationships.
2. Have All Your Information At Your Fingertips
A dedicated CRM system will allow you to connect your sales and marketing data to records like accounts, delivery and stock on hand. You’ll know everything about your customer’s interaction with your company, from whether they’ve received orders on time to whether they consistently pay late.
3. Track Profitability
Are you worried about tracking every cent of revenue? Stressed about dealing with client returns, product discounts or shipping costs? Keeping track of your total revenue is one of the reasons why your company needs CRM. This tool can also provide a speedy bookkeeping system for small businesses, including accurate financial reporting.
4. Improve Sales By Refining Your Marketing
A CRM system lets you target your sales efforts more efficiently and precisely. With a more strategic approach you can improve your sales conversion rate and increase the sales-per-customer ratio. You’ll be able to analyze the success of different marketing initiatives and adjust them as needed. By refining those initiatives you can change the way you operate, to better improve your customer service and marketing.
5. Improve Customer Service
Good customer service is the backbone of any successful company. Have you been frustrated by poor customer retention? Your approach to customer service may be at fault. This is another good reason why your company needs CRM. With a CRM system in place you can help your employees respond to your customer’s questions quickly and effectively. You can track complaints to determine where your company isn’t performing well, and get insight into customer ordering trends, ensuring that employees don’t drop the ball on order-related issues in the future.
6. Find New Customers
The data you have about your existing customers can be a road map to helping you find and market to potential customers matching your best client’s profiles. Profiling individuals and groups will enable you to target your marketing and increase your bottom line – sales. Tracking inquiries will also help you keep in touch with new prospects and develop a relationship you can nurture.
7. Increase Efficiency and Reduce Costs
Successful businesses are efficient. You can reduce sales and marketing costs by improving your targeting and reducing wastage and time expended. CRM will allow you to eliminate duplicate processes, which will save you time and money.