How Effective is Customer Relationship Management?
What is a CRM?
Customer Relationship Management (CRM) is a system which addresses your businesses relationships with both your existing, prospective and past customers. CRM systems can be brought into effect with existing or new systems, and will help you to collect new information on your customer base, and will then assist you in organising that information. CRM’s are beneficial to both small and large businesses, and they offer a lot of benefits for both you and your customers.
What a CRM allows you to do is manage your marketing efforts and merge them with your business processes. This allows you to identify and manage your relationships with customers and this will in turn allow you to understand your customers buying preferences so you can market your products to customers at the right point of sale. Using a CRM is all about managing your relationships with your customers both before and after the point of sale.
What are the Benefits of using a CRM
Using a CRM holds many benefits, and the way that we market products and services has changed dramatically in recent years. In the current day the customer is always right, so maintaining a good relationship with your customers is of paramount importance to your company’s success. One of the main benefits of using a CRM is the improved customer relations that come from the better understanding of their needs and issues. If you apply this knowledge successfully within your business model then your customers will become more loyal due to the fact that you are addressing the issues that they are actually concerned about.
Another benefit that comes from increased knowledge on each customer is the opportunity for cross sales. If you know what sort of product that a customer likes then you can quickly identify other products that they will likely be interested in, and when further selling opportunities open themselves your sales team can capitalise on this to sell more products to the same customer, which should in turn also increase customer loyalty and retention. If you can make the products that your customers would be interested in more readily available to them at the right time then you will be converting more and more customers into more than just customers.
Marketing optimisation is one of the most advantageous prospects that come from CRM systems, and the increased understanding that it gives you allows for you to optimise your marketing so you get the most return on investment from your campaigns. You will be able to identify the exact best time to market to your customers, as well as the best set of customers to market to for the best results. This decreases the amount of marketing spend that you waste on marketing to customers that do not convert.
The statistics on businesses using CRM systems speak for themselves and they show how compelling CRM systems really are in increasing the value of your business model. Below are some stats that you probably didn’t know about Customer Relationship Management Systems:
- For every £1 spent, the average return is £5.60.
- 91% of companies with more than 11 employees use a CRM system, compared with only 50% of companies employing 10 workers or less.
- Sales reps saw productivity increased by 15% when they had mobile access to CRM applications.
- 78% of consumers have dropped out of a purchase they intended to make because of poor service experience.
- 30% of all marketers say that having disparate data sources is the main reason that they cannot glean useful insights from customer data.
- 55% of all customers said they would pay extra to guarantee better customer service.
- After CRM implementation revenue increases up to 41% per sales person.
- After CRM implementation lead conversion rates increase up to 300%.
- Improved profit margins of over 2% after CRM implementation.
- Decreased sales and marketing costs of 23% after CRM implementation.
Who are CRM Systems For?
CRM systems are for any business that wants to capitalise on their customer profitability and customer satisfaction. It does not matter about the size of your business; a CRM will still benefit you. You will gain endless streams of data on your customers and this will give you unprecedented insights into your customers experience with your brand, and about what they are telling other about your brand. This will help you to identify the flaws, short comings and gaps within your business model. If you want to free up your time to focus on making your customers happy, rather than letting highly valuable insights and information about your business fall through your grasp then Customer Relationship Management is for you.
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