Benefits of CRM
A CRM System is not just a packet of software that is applied to a business. It is a complete eco-system of people (employees), procedures (the way you do your business) and finally software (programs and supporting applications). It is not just another application which runs on a computer. CRM is also not just another form of marketing. Again, it is a way, a philosophy, and a strategy for doing business. There are many benefits that a well applied CRM strategy can bring to a business. The following benefits, not in any particular order of importance or priority are typical;
- Shared Knowledge, Information and Content
CRM applies to an entire organization. Not just the folks who work the front office, or other functions that deal with the clients and customers on any basis. Companies that deploy a solid CRM practice quickly realize huge inherent value in the data and knowledge that they collect about their clients, their habits, their preferences, their spending and can build a much stronger strategy by making more informed decisions, and importantly, be able to react and follow-up on activities across all levels of the business. - Improved Profits, better margins, and reduced cost of sales
A company which enjoys a solid CRM practice will be able to do more business, more efficiently, and more effectively. Doing more business at a lower cost "of sale" equals more profits! Many companies realize huge increases in 'inside-sales' to the existing client and customer base by simply having a 360 degree view of the customer, and being able to target promotions, new products and services to the existing clients in ways that meet the customers needs by 100% Instead of blanket marketing to public markets in an attempt to drive sales which is so typical, companies begin to collect data about their existing clients and can cross-sell and up-sell to those clients very easily, and very effectively - Cost Reductions
A powerful factor in Customer Relationship Management is that it makes your customers a partner in the business! The customer is no longer just another 'subject' or 'entity' in your markets. Is is even possible to extend the CRM systems to allow customers to place their own orders directly on your systems, resulting in less order entry and validation from your own employees. CRM also reduces costs by making existing workflow and processes much more efficient. - Improving Customer Service
Dealing with problems, complaints, questions, queries, support and other factors around managing your existing customers are key opportunities for dialogue. It is naturally critical for your business that these dialogues be as healthy as possible, and leave your customer, despite the current challenge faced actually impressed with your companies attitude and abilities. CRM centralizes data about all the history and current interactions with all clients. Because your employees now have all the information at their fingertips, employees that have never dealt with the customer in the past are instantly armed and empowered with the same knowledge and 360 view of the customer as any other employee. Theres no second guessing. Theres no "Well, I'll have to ask the person you spoke to about this last time", theres no "I'll look into it and get back to you when I have an answer" CRM allows all of your business to be more able to deal with ongoing relationship with clients, even pushing appropriate information to affected clients and customers proactively. Improving Customer Service is a key facet in growing your companies "Net Promoter Score" - a well defined scoring mechanism for referrals to new clients by your existing clients. With a well positioned and managed CRM solution your net-promoter score will improve. - Stronger Customer Retention
Your CRM solution will help to improve your brand equity; or the active or passive perceptions that your client holds about your business. Happy and satisfied customers increase their loyalty, not necessarily enough to become strong 'net-promoters' of your business, but enough to that they will remain loyal to you. Their loyalty is hard earned and a very valuable commodity to your business - Higher Customer and Client Satisfaction
Don't you personally feel very alienated and annoyed when you receive sales calls either in person or on the phone, where the sales rep is working 100% towards satisfying their own needs? They pretend they know a lot about you, but in reality they know nothing. CRM solutions help your business to to make your clients feel more 'part of the team', a person, rather than another number. By anticipating the needs and especially the history of each client their overall satisfaction with your business will improve. No CRM system can help with poor products though! A satisfied customer is potentially a good prediction of repeat future business. Not really! Only delighted customers deliver any greater sense of loyalty and repeat business. Satisfied customers only maintain a view that says "Well, that is how business should be done anyway" - Seeding more new business
Happy and Delighted customers thrive in a very professional experience with you. They attitude and philosophy towards your business seeds the entire market through word of mouth, votes of confidence, telling friends and family. These positive reflections of your business will spawn more new business - Increased Confidence in the Market
One of the toughest jobs in managing a company or a product is ensuring that you remain competitive, not just in the short term 6 months to 1 year out, but in the mid and longer term. Having very strong relationships with your clients allows you to identify those clients that may become effective 'advisors' to the management team, almost in the form of an advisory board. A strong CRM philosophy across a business will promote the activities necessary for your clients to reach out to you, and help you when you ask them to complete surveys, or forms. CRM also allows the management team to target specific market analysis and focus efforts on the right customers and clients within the installed base to help drive the future strategy and direction of the entire company. - Customer Self Service Savings
Your CRM Solution should allow your existing clients 24 hours by 7 days a week access to their records, their history of purchases, their documentation, invoices, new quotations, knowledge-base, newsletters, help-desk and support. Let's call all of these factors the "Portal". CRM provides a company a view around their Client base, whilst at the same time providing the client themselves the ability to interact with those elements of the system relevant to their relationship with you. This customer and client self service capability provides the client the chance to engage with you as 'part of your business'. Of course, providing accurate and updated data to you is also important for your marketing efforts! These facilities and functions lend themselves to increasing Customer Loyalty; again! More loyalty means more repeat business; means more sales, more revenue and the cycle continues! - Give yourself a strategic advantage!
Do you competitors treat their customer better or worse than you? Do you competitors have a well implemented and planned CRM strategy? If you provide a better service, and are able to personalize all of your engagements with clients will you be doing a better job than your competitors? Can you treat all of your customers uniquely? Can you prioritize your interactions with your clients in accordance with the clients value to your business? Are you more responsive than your competitors? Is your competitor agitating their customers? Can you take advantage of this? - Market Segmentation and Analysis
Can you track your entire sales pipeline, sales stage, by opportunity priority? Can you identify trends and swings in the buying patterns of your customers? Is anything they do seasonal or dependant on other factors? By better understanding your own markets, and how clients react to sales initiatives you will be better able to anticipate their purchases. For example, a customer that buys flowers in spring for their gardens is very likely to need fertilizer in the fall! - Close your deals faster!
CRM helps your sales force close their deals faster. They are quicker and more efficient in their responses to leads, potentials and opportunities and the associated customer information. The turnaround time for the promotion of a lead, to a possible, to an opportunity to a client is significantly shorter, even dramatically shorter in some cases. Remember too, that in the pre-internet era a customer would contact a potential supplier only 2 or 3 times before entering into a purchase commitment. In todays 21st Century this number has risen to 12 to 15 interactions, often across different channels including web, email and telephone conversations. CRM helps you deal with these multi-channel interactions easily and very effectively. This efficiency and effectiveness drastically reduces the sales-lifecycle!