Why Your CRM System Is Most Valuable Asset

Finance & Investment

Nov 28, 2018

431 Views

Customer Relationship Management (CRM)

CRM means customer relationship management. It is a strategy for managing the company's interactions with current & potential customers. It is the process of identifying & generating potential leads and converting them into sales.
Once a new customer is made, it's our duty to maintain that relationship with him as it encourages repeat business. For ex - more frequent orders or high value orders from the customers. Everyone knows that it is much easier to generate a business from an existing client rather than selling to a new client.

Role of CRM System

CRM plays an important role in establishing the businesses. It allows you to centrally record number of things that are currently stored in phones, notepads, spreadsheets and in people heads to make sure that everyone is aware & working for the same goal i.e. increased sales and better customer experience.

CRM System-

1) Helps in centralizing all customer information by storing all the contact information and the relationships.
2) Helps in recording all means of communications such as important phone calls, e-mails & letters. With the help of this, you can easily know who said what & it also removes the need for forwarding e-mails to lots of peoples internally.
3) Helps in managing the number of quotes sent, number converted into orders or any revisions made.
4) Helps in managing the issues currently customer is facing or handling any complaint from the customer is undoubtedly the first work of a sales person to solve.

Benefits of CRM

CRM is a tool which helps the businesses to identify, understand & assist your customers. It offers many benefits to the businesses which are as follows -

1) It helps in increasing the sales of the business.
2) It helps in increasing the profitability & efficiency of the business.
3) It helps in improving the sales forecasting & productivity.
4) It gives you more accurate sales reporting.
5) It helps you in improving the service levels.
6) It helps you in maximizing the Return on investment (ROI) of marketing activities.
7) It helps you in increasing the level of customer loyalty.
8) It helps you in making better collaboration & communication across departments & teams.
9) It helps you in making differentiation among customers - which are profitable and which are not.
10) It also helps you in improving the customer satisfaction & retention.
11) It helps you in reducing the cost of sales.
12) It helps you in building & maintaining your goodwill in the market.
13) It also provides you a facility to work from anywhere through mobile app, web interface or an offline access. It empowers people to get work done from anywhere.
14) It gives you automatic software updates and allows you to update your system from time to time.

How Good CRM system is your valuable asset?

Now a days, many companies use spreadsheets for storing their customer data. Work stored on spreadsheets get lost, sometimes go outdated and sometimes might go into the wrong hands too. An effective CRM system can eliminate all such things and become most valuable asset of your organization in the following ways -

1) Generation of leads - CRM helps you in generating leads in the system and you can manage those leads easily on daily basis. It also helps you in organizing your customers & contacts so that you can take any action easily and without delay. It gives you accurate insight of each and every case by bifurcating the data into leads, prospects, opportunities, lost cases etc.

2) Helps in understanding your customer - CRM help businesses by giving better understanding of their customers. With the help of CRM, you can capture the customer information and easily identify who your customers are, what type of products they are interested in, what they are searching online, what questions they are asking etc. It also informs about their current purchasing trends. After understanding their choices in relation to product purchasing, it becomes easier for you to know what customer needs are, what they want and how to fulfill them. It also gives you strategic advantage over your competitors and helps you in managing your customers through each stage of their buying journey.

3) Helps improve customer service - Following up with leads helps businesses in improving their customer services. Nowadays only 37% of the businesses are following the web based leads in an hour and rest 71% of the organizations are wasting it by taking more than 48 hours in managing follow ups. With the help of CRM software, businesses can easily follow up with their leads in real time & contact that person right away or whenever it is needed.

4) Helps increase profitability - CRM helps in increasing the profitability of the businesses. In today's time, it is 6 times more expensive to acquire a new customer than retaining the existing one. CRM software helps in building & maintaining strong relationships with the existing customers and hence leads to increase in profitability. Businesses spend too much money on marketing activities to acquire new customers. Properly understanding the needs and wants of the existing customers is a key to retain them and later converting them into loyal customers.

5) Building a Good sales pipeline - Many of the businesses keep their current suppliers until they are ignored. CRM plays an important role here and helps in keeping them alive in your CRM database. Good sales depend upon converting the leads into the business. With the CRM software, you can put unlimited leads into the system and can later convert the same into sales.

6) Communication with the client - With the help of CRM software, you can communicate with the clients in timely & more effective manner and it helps in increasing the sales of the company.

7) Preserving your customer data - Data is the most important part on which business survives. Security of customer data is very important otherwise you will lose your customers. Without a CRM, it is difficult to focus on the customers. CRM helps in preserving your customer data by updating your customer's contacts & information from time to time.

CRM is the most important asset for a business as it helps in establishing your business. It is difficult to handle a customer without a CRM system. The companies currently using CRM Software know the importance of it & they understand how to satisfy their customers and build along relationships with them. It helps in enhancing the employee's performance too.

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