Customer relationship management (CRM) is the combination of practices, strategies and technologies that a company uses to improve relationships with its customers by focusing on retention and driving sales growth. CRM systems compile customer information from a range of different communication channels (including a company’s website, telephone, email, live chat, and so on) and make the data available in real-time.
Benefits of CRM solutions
A CRM system can be one of the most powerful management tools in your arsenal and here are some reasons why your business needs one.
- Increased sales
Since CRM helps to compile and analyze the massive data sets being generated from all of a company’s communication channels, you can use the data to know exactly what customers want now and in the future so you can tailor your products accordingly. CRM stands out because it doesn’t lump all the data of customers together as it can present the data on an individual basis.
- Optimizes marketing
By compiling and analyzing customer information, CRM can provide valuable insights that can give your marketing a boost. You will be able to know the needs and behaviour of your customers and discover the time and kind of message to use in promoting your products. It can also partition customers into groups based on their profitability so you can create customized promotions and know the ideal time to execute them. All of these can help increase your revenue.
- Lower costs
The start-up of a CRM solution might seem to be expensive, but the benefits over time far outweigh the initial costs. With CRM, your business can track and analyze data in real-time, which reduces dependence on traditional methods of consumer analysis. Most of these traditional methods aren’t just inaccurate but very expensive. You can now have a central database that everyone in the sales team can access without keeping a spreadsheet.
- Improved customer satisfaction
One of the biggest benefits of CRM is that it helps businesses to treat their customers as individuals rather than mass markets, thereby improving service delivery. For instance, your company’s representatives will be able to effectively resolve the complaints of customers as CRM makes it possible to retrieve all their activity and interactions with your company.
- Improved cross and up selling
The more you know the behaviour and needs of your customers via their purchases and interactions, the easier it will be to anticipate their needs and offer solutions to their next problem. This allows you to check available data in minutes to know the products that a customer might be interested in, thereby facilitating quicker offers.
- Automate everyday tasks
Completing a sale or attending to the needs of unhappy customers is never an easy task. However, CRM can help take the burden of many repetitive tasks off the shoulders of your employees so they can become more productive. For instance, CRM systems can automatically send emails to new prospects in the system with the goal of converting the lead into a loyal customer.
CRM systems can help your business leverage the wealth of data to grow for growth and expansion. CRM will remain an invaluable asset for a long time, especially for businesses that desire a quick balance between product provision and customer acquisition cum retention.