7 Ways CRM Can Help Reduce Costs for Your Business

If your business is built on long-term relationships with customers, then sooner or later you physically will not be able to control all the tasks yourself.

The CRM system can do this for you, increasing sales, improving employee productivity and making your long-term customers more loyal to you. Of course, all this affects both your profit and the amount of money you can save. In this article, we will describe how a CRM system helps reduce costs while increasing efficiency.

CRM Reduces Costs When and Where You Need It

Very often, CRM systems are individual solutions created based on the specifics of a particular company. Yes, there is also a boxed software on the market that contains built-in features that will benefit any business. And even these applications are quite effective.

But creating an individual CRM system allows you to work with your personal pain points, and reduce your costs where they are impractical. For example, you may know that recently the load on your customer support staff has increased significantly and they no longer have time to cope with their responsibilities. In this case, the focus of the CRM system will be precisely on this problem.

CRM Reduces Production Costs

CRM system is a simultaneously powerful built-in analytics and accounting tool. These features give you the ability to manage your goods that are in the manufacturing phase or already in stock. Besides the fact that you can easily take into account each unit of goods, you can also create interim reports and analyze which goods are sold better than others.

This allows you to optimize your production and invest profits in creating those products that your customers want to buy. Surplus goods in the warehouse gradually become part of the past, and your production becomes optimized, dynamic and profitable.

CRM Reduces or Even Eliminates Paper Costs and Waste

The CRM system eliminates the need to store all data in print and add each new document to the appropriate folder. All data from your customers – from the name and the first call to the last purchase is stored electronically and in one place.

Thus, you can print only the most necessary documents, which must necessarily contain a manual signature and the seal of the company, but even this can already be done without using paper. As a result, you do not spend money on paper purchases.

Of course, if this is an office of three people, then it is possible to use one package of paper for half a year, but if it is a large company, then the costs are much higher. And yes, sooner or later all paper documents will end up in the bin, and then they will be thrown into the landfill. Think about this when developing your company’s social and environmental mission.

CRM Reduces Costs to Get New Customers

This is a long-known law of marketing and economics – retaining an existing customer is cheaper than attracting a new one. However, the business needs to grow, and growth without new clients is impossible. But if you want that attracting new customers not to become a heavy investment and a hole in the company’s budget; the CRM system can indirectly help you to get new leads. 

Since this solution makes the customer service seamless and constantly keeps it at a high level, your current customers themselves will recommend you at the opportunity. And recommendation and the world of the mouth are strong social evidence that works for the good of your business for free.

CRM Reduces Sales Representatives’ Expenses

As we already said, when your business is based on long-term relationships with customers, this means that your representative needs to meet with them personally from time to time. The CRM system makes it possible to plan these meetings competently and to localize them at a minimum distance from each other.

For business, this means lower transportation costs, and of course, reduction of harmful emissions into the atmosphere. Remember, we already said a few words about the environmental mission?

CRM Reduces the Costs of Customer Support Service Maintenance

Very often, a CRM system has a so-called self-service portal which allows users to resolve their issues on their own, without increasing the load on your support desk. For example, let’s look at a situation from the financial industry.

does crm save businesses money

The client wants to get a small loan. Instead of calling you or visiting your office, he fills out an application on the site, which is automatically redirected to the CRM system and assigned to a specific manager. Thus, the business immediately gets the opportunity to start working with the lead bypassing transit points like calls to the support service.

CRM Reduces the Cost of Mistakes

Because their likelihood is automatically reduced. And this is automatically reflected in the client service. The programmed system itself leads customers through the sales funnel, and managers receive instant hints about what task to perform.

How many times have you encountered a situation where your manager mixed up contact details, mixed up goods in a package, and sent them to the wrong customers, or simply forgot to call back? All this affects both finance and loyalty. An incorrectly sent parcel must be returned, just like the manager needs to call back to the forgotten client and apologize. With a CRM system, the likelihood of human error or forgetfulness tends to zero. Every manager knows what he needs to do right now according to the company’s strategy.

How Much Does It Cost and Where to Get Money to Introduce CRM? 

The price of a CRM system will vary depending on your needs. However, Nimble is one of the most affordable options on the market for small business teams at just $19 a month per user