What is CRM and Why is it Important for Business?Aug 2022
What is CRM and Why is it Important for Business?
A CRM (Customer relationship management) system is a software application that helps businesses track and manage their interactions and communications with prospects, leads and customers. It can keep track of contact information, past interactions, purchase history and more.
At its simplest level, it's about capturing and using client information so that you can personalise the experience you provide to your customers. At its most sophisticated, it is part of a joined-up strategy to provide a 360-degree view of customer behaviour so that you can retain customers for longer and increase their spending over time. This information can help businesses better understand their customers, as well as provide targeted marketing and customer service efforts, depending on how far along they are in the customer journey.
With a comprehensive CRM system, your business can increase sales, grow your customer base and improve customer loyalty. Additionally, CRM can help businesses save time and money by automating tasks that would otherwise be done manually, and often painstakingly.
Moving Away from ‘Old School CRM'
According to one 2020 survey, the lack of a cohesive CRM system is costing businesses 52% more in lost revenue. The problem? Many companies still can't get an accurate 360-degree view on their customers across various applications and data silos which leaves them unable predict when someone might leave before it's too late.
CRM software is evolving to better measure customer engagement - encompassing a much broader spectrum of applications. No longer just a contact database, it now encompasses your:
• Marketing & Lead Generation
• Sales lead/opportunity tracking
• Customer Care/support
• Process automation and more.
Streamline your sales process with CRM
CRM is about delighting customers, improving customer service and generating more sales.
CRM systems can help salespeople keep track of their interactions with customers. CRM systems can also help businesses with some of their sales processes, such as follow-up emails and appointment scheduling.
Gartner says as much as 80% of your future profits could come from just 20% of your current customer base. If this is true, then your business needs a methodology for identifying these potential stars and investing resources in them proportionate to the potential returns.
A CRM system can provide your salespeople with the ability to see which deals are the most likely to close sooner, and which deals are at risk of being lost. This allows your salespeople to focus their time and energy appropriately. CRM systems can provide valuable insights into customer behaviour, helping salespeople to target their marketing efforts more effectively.
Decrease the time, effort and cost of acquiring new customers and increase the lifetime value of existing customers.
The benefits of a CRM system are numerous - If you’re looking for ways to improve your business efficacy, we suggest downloading our free CRM whitepaper. In it, you will learn about the benefits of CRM systems and how they can be tailored to fit the specific needs of your company, along with why your CRM may not be achieving its full potential.