CRM software assists a business with compiling all customer interactions in one place in order to improve overall customer experience and boost profitability by employee productivity and increasing sales. CRM software operates by keeping track of the behavior and actions of an organization’s current or potential customers through the business’s website and social media. Then, utilizing this information, the software gets customers involved in the sales process by sending an automatic email or notifying an employee of the business of the customer’s interest.
The implementation of CRM software has become more crucial than ever for businesses. A business typically seeks to incorporate CRM software into its pre-existing system in order to boost its core business processes, which include organizing contact information and streamlining their interactions with customers. According to a range of studies, businesses that utilize CRM software can raise its sales by 29%. In addition, the CRM industry, as a whole, is projected to grow at a rate of 14% between 2021 and 2027. The reasoning behind this rapid growth is due to the overwhelming benefits CRM software can provide a large range of businesses. Here are 7 key reasons as to why a business should implement a CRM into their network:
- Manage communications with prospective leads
Without CRM software, communication can be tiresome and full of miscommunication. A CRM uses an automated process to send a business’s employees alerts with customer information and details about when to reach out. In addition, a CRM tracks all interactions with prospects and customers, ranging from phone calls to emails, notifying employees about following up with customers in a timely manner.
- Improve customer satisfaction
When customer interactions become tracked through CRM software, a business is in a better position to offer superior assistance and support to customers. With increased use of CRM software, businesses can develop in-depth customer profiles, ultimately resulting in a more well-rounded understanding of a customer’s values, preferences, and demographic information. A business can then pinpoint returning customers and adjust directed marketing strategies appropriately. Along with this, a CRM can collect reviews made by customers, allowing businesses to adapt their approach to ensure customer retention across certain demographics.
CRM software can also enhance sales outreach efforts. If business employees are able to determine a specific customer’s interest, they are more likely to be able to provide accurate support in an efficient manner. With this data available to the employees, they do not have to spend extra time digging for information, and can instead focus on solving more problems in a proactive manner.
- Centralized database across the entire organization
With a growing business comes a growing customer database. Over time, it can become increasingly arduous to centralize all of a customer’s information and past interactions. With a CRM, a customer’s contact information and a business’ inventory and marketing information becomes easily accessible,
making it increasingly easier for a salesperson to, for example, locate which products or services a customer has previously purchased or is interested in purchasing. Overall, a centralized database reduces the time an employee would spend on sifting through old files, and provides a more productive experience for the customer.
- Streamline collaboration
CRM software does not just track interactions with customers; the software also serves as a database of conversations and notes between employees, as well as serves as the facilitation of communication across all departments of a business, including external stakeholders like suppliers and distributors. This feature allows employees to combine forces on strategy, and present the best results in sharing customer information across different teams. Some CRM software offers tools that allow several employees to work on one project simultaneously or track the progress of a project, such as a sales quote.
By transferring customer information across different departments, employees can decipher the best means to contact a customer to guarantee a quality interaction. Sales people will be able to locate customer files efficiently, eliminating the need for in-person meetings. In addition, errors in a customer’s file are weeded out through constant checks made by other employees, leading to a decrease in service costs.
- Cost-effective
There is an array of current CRMs that can appeal to a range of organizations, from large corporations to mid-sized businesses. With the implementation of cloud-based Saas platforms, as well as increased competition, the cost of CRM software has gotten drastically cheaper. Along with this, the current standardized format across most CRM software has resulted in a reduced CRM learning curve, thus lessening installation time and removing the need for IT. Additionally, various features, such as machine-learning algorithms and artificial intelligence tools, are typically too expensive for smaller-sized businesses and freelancers to integrate into their systems. However, modern CRM software includes these features as a lower-cost solution.
- Increase Profitability
Statistically, gaining a new customer costs six times more than retaining a pre-existing one. Customer retention is one of the most vital aspects of a successful business. CRM software can assist with establishing and preserving long-lasting relationships with existing customers, resulting in increased profitability. When a business maintains a strong relationship with existing customers, a business will lose the need to spend large sums of money on marketing to obtain new customers. Recognizing and adapting to a customer’s desires and needs is crucial for retaining them as long-term customers.
- Improved customer segmentation
A cohesive list of all of a business’s customers can be daunting. How would it be possible to identify which customer would want to receive word about an incoming product or service? Through the use of a marketing CRM, an organization can employ segmentation features to institute separate brand campaigns for different demographics. On the other hand, in terms of sales, an organization can utilize segmentation to separate customers based on type, location, or deal stage. Additionally, employees would be able to calibrate a specific pitch and increase their chances of making a deal with a new prospect.