Customer Relationship Management Tools are enhancing relationships with customers and this is turning out to be more beneficial than anyone ever thought.
Every business owner aims to increase sales and profitability, but you can’t improve those things without customers and to manage customers effectively without losing out any communication you need to choose and implement a CRM that is best for your organization. A new program is being tested out by companies and it seems that Customer Relationship Management is the next BIG thing. Paliouras and Siakas, two professors in the Department of Informatics at Alexander Technological Institute of Thessaloniki, wanted to prove this in their experiment, Social Customer Relationship Management.
To prove this as an example – three family-owned businesses in Greece were asked to use a CRM system which was created by students, to focus on how it improved or made their business worse. It turns out that two out the three business owners tested in this study thoroughly enjoyed this system and continue to use it till today. It has become mandatory that a well-smart- easy to use CRM is definitely required for any business type. Let’s find out why CRM is making an impact and difference in business flow and routine.
CRM is Making its Way Through the Business Profitability. But How Exactly!
Interacting: Find time to speak and work with customers to learn what services and actions could help build a better relationship.
Analysing: Use what you learned from talking to customers and come up with ways to make it work (ex: helpful customer service, truthful prices).
Learning: Using the information you’ve analyzed, create new and exciting ways to reach out to customers again.
Planning: Putting strategy into action to meet the needs of customers and to build strong relationships.
Here are some of the benefits that have fuelled growth for CRM and raised a demand for it in the new market.
Focus on Retaining Existing Customers
A study from Bain & Company shows that the cost of generating new customers is about 6-7 times higher than the cost of retaining existing ones. Some studies have shown that the cost differential is even higher. Follow-up research has found that increasing customer retention by 5% can also improve profits by 25-95%.
This is one of the biggest advantages of a CRM software. Numerous studies have shown that utilizing CRM technology helps companies increase customer retention by about 27%. More businesses are likely to employ CRM solutions to protect their revenues in an increasingly uncertain economy.
Improves Team Collaboration
Customer Relationship Management software has helped companies keep their employees more connected than ever before. Fostering relationships between employees has become increasingly difficult in recent years. The increased use of mobile technology and shift towards a virtual workforce has complicated those relationships further.
Using a CRM allows employees to stay in contact and follow-up with their colleagues as easily as with their customers. Many employees have found that using these tools has enabled them to maintain a closer relationships with one another.
Automates Processes to Meet Sales Goals
Research has shown that human error accounts for 80-90% of disasters in many industries. There are a number of sources of human error, but it is usually caused because people are overwhelmed with their work.
Automating processes is a great way to reduce human error. Studies from the American Society of Safety Engineers, American Society of Health-System Pharmacists and countless other organizations have found that automation has helped companies reach their goals more easily by reducing the number of mistakes made by workers.
CRM technology is a great tool to automate customer relationship building. Using a CRM tool effectively will help meet sales goals much more effectively.
Save Time, Financials & Energy
Most business players feel that they don’t have enough time in the day. CRM systems allow them to streamline their customer relationship management process, which gives them more time to focus on other things.
By having a good CRM to keep your contacts and information organized so that you can easily follow-up and keep track of customers, you will find yourself being able to spend more time actually selling than looking up for information. Who doesn’t want that?
If you’re into sales, it’s time to think Smarter!