As businesses evolve rapidly and become more complex, the competition only grows higher. As such, it’s crucial for organizations to focus on their single most valuable asset, customers. The success or failure of your business depends on how you handle your customers. This means understanding your audience better to ensure customer satisfaction.
This is where CRM (Customer Relationship Management) comes in. A CRM system can help improve interactions with both existing and potential customers. It can also boost profitability by employee productivity, increasing sales, and streamlining various processes pertaining to customer service, sales management, contact management, and more. According to a survey, 91 percent of firms with 11 or more employees now use Customer Relationship Management software.
In this article, we’ll take a closer look at what the CRM system is and why it proves to be an essential asset for any organization.
About CRM System
CRM system is a type of software that helps companies efficiently in managing interactions with b2b clients, individual customers, colleagues, suppliers, and so on. CRM helps with various processes, from winning new business, finding new clients, offering add-ons and providing further support.
The CRM system retrieves data from various online and offline sources, such as the company’s database, survey forms, consumer transaction history, forms filled while making a purchase, etc. Nowadays, CRMs rely on social media platforms like Facebook, Instagram, and Twitter to retrieve relevant customer information.
The Value of CRMs for an Organization
Building a relationship with customers will help retain consumers and create loyalty. This, in turn, will help in maintaining your company and increase profits as well. The simple interface of CRMs helps companies in interacting with the audience, collecting information, and executing various tasks in the most simple way possible.
CRM can also track opportunities stuck in different stages and notifies the sales representatives CRMs are of great help for the sales team as they can track phone calls, email conversations, in-person meetings, and voice mails with prospects.
How CRMs can prove to be an organization’s most valuable asset?
It’s the first system that representatives from different departments access when a consumer contacts the firm with some queries. Regardless of whether it’s the supplier, customer, vendor, partner, or prospect, CRM is a shared database and as such, it integrates with company websites, HR, accounting, ERP, and various other systems in the organization.
CRM can perform a number of actions, including sending emails, making notes, scheduling appointments, placing/canceling orders, and raise tickets for complaints, set follow-up alerts for managers and associates, and many more. Effective implementation of a Customer Relationship Management (CRM) system is paramount to the success of your business.
Here are 6 reasons why CRMs is an essential asset for an organization:
Key to understanding your customers
CRM software helps firms in understanding their customers better. With the information retrieved by utilizing CRM, you can determine who your customers are, the type of products they want, why they buy your products, what they’re looking for online and the questions they’re asking, and their purchasing trends.
When you’re able to understand your customers better, it becomes much easier to anticipate the needs of your customers and fulfill them. When you learn to use CRM effectively, you’ll have a strategic advantage over other companies easily. Well analyzed and organized customer data can make it easier for you to choose suitable recipients for promotions and new products.
Offer tailored offers to each consumer
When you go to a brand’s website, you might have come across a pop-up that asks you to sign up and create an account. If you’ve been wondering why company websites keep on bugging the visitors on their site with such pop-ups? This is because when you register and sign-in, the website can keep track of your activities and offer product recommendations on the basis of your preferences.
CRM allows you to integrate with the website, examine the data using ML and AI solutions, and craft personalized recommendations to be offered when the customer interacts with the company next time.
Streamline organizational processes
You’ll be able to manage organizational processes more efficiently when you have more information about your customers. It’s essential to identify, document, and continuously record every activity of your customers. In doing so, you’ll be able to offer a great customer experience. Whether it’s sales, business analytics, or marketing campaigns, CRMs help in automating and streamlining various aspects of an organization.
Customer relationship experts around the world agree that companies that utilize the latest organizational tools, such as the CRM, are able to categorize and analyze customer data accurately across various business departments. Companies then use this data to refine organizational processes, leading to improved product quality and streamlined services for customers.
Improve customer service
Only 30 percent of organizations respond to their internet-based leads in an hour. This means most companies are wasting the opportunity to turn their leads into sales. In today’s competitive market, the only way to gain an edge is by making lasting first impressions and responding to your prospects as quickly as possible.
According to research, 71 percent of businesses waste their internet-based leads by taking about 47 hours before responding to them. With the help of the right CRM system, firms can easily respond to their prospects in real-time. CRM software also helps the sales team in nurturing and building relationships with new leads and existing clients. Engaging customers in real-time helps in improving customer service.
You might be aware that it’s 6 times more expensive to gain a new customer as compared to retaining an existing one. As such, the main objective of any company should be to retain their existing customers. CRM software can help in building and maintain lasting relationships with existing customers, thereby increasing profitability.
When you retain loyal customers, there won’t be a need to spend much on marketing to acquire new prospects. Understanding your clients in terms of their wants and needs is essential for retaining, nurturing and turning them into lucrative long-term customers. It’s also essential to acknowledge the importance of developing relationships with new prospects to boost your revenue.
Reduce sales cost
Selling is key to your company’s growth. However, acquiring a new customer is an expensive and complicated task. This is where CRMs can help again. It assists the sales team to explore and pitch the best product renewal or cross-selling opportunities.
Choosing the right CRM tool for an organization
The right CRM application will help your organization in building strong relationships with customers and provide the necessary tools to your sales team to refine customer service and experience. Picking the right CRM tool is essential for achieving the aforementioned business goals.