Why a CRM?
CRM stands for Customer Relationship Management, and CRM software allows for easier and more efficient management and interaction with potential leads and current customers.
CRM software is essentially an interactive database that stores information on all your prospects and customers. They are grouped together in a way that makes it easy to perform various tasks and actions more efficiently, such as reporting, scheduling assigning, organising sales pipelines, storing lead capture information, and so on.
The main benefits of using a CRM system are:
Improved Customer Relations
The main purpose of a CRM system is to help you better manage relationships with your customers. In practice this might mean; setting reminders on customer accounts to speak to them every couple of months, storing personal information to help build relationship and rapport with clients, recording customer feedback. All this helps to improve customer satisfaction and the all round customer experience.
Maximise Up-selling & Cross-selling
It is said that 80% of a business' revenue comes from 20% of its customers. Often companies can get too distracted in seeking out new business and fail to maximize the revenue from existing customers. A CRM system will help increase revenue from current customers by helping to build better relationships. As the relationship with your customers develops, so does your insight into their needs. This allows you to be in a position to be able to up-sell and cross-sell your products more effectively according to their needs.
CRM systems allow you to store large amounts of valuable data on your customers and on your new prospects. As you begin to segment your data you can start to create more effective and targeted marketing campaigns, increasing the conversion rate of sales.
Better Internal Communications
Communication between departments and teams is vital to an organisations efficiency and productivity. A CRM system enables better internal communication by providing functionality to collaborate more effectively on projects, accounts, tasks, and responsibilities. Better internal communications and shared data among colleagues also leads to better customer service being delivered.
CRM systems provide you with the insight to spot important sales trends that are happening within your business. These may be upward or downward trends, and both are useful in learning about what your customers want and what the wider market is seeking.
Workflow automation eliminates the need for employees to perform a lot of tasks manually.
a sales process automation may trigger an alert to a sales manager whenever a business with a certain number of employees or turnover is added to the system.
an account management automation may automatically send emails to customers and clients when their contract or service is ending, offering specific renewal options.
a support automation could automatically change a client's status to "contact immediately" triggering an email to be sent out to a customer for example whenever the customer status is updated elsewhere on the CRM system.
For a more in-depth overview of the benefits, a CRM system will bring to your business watch the video below.