Why is CRM Now More Important Than Ever Before?
According to Peter Drucker, the goal of any business is to create a customer. But more importantly, maintaining these customers and deepening relationships with them.
Research has shown that most customers will benefit your organization after at least two years Because new customers would cost you so much. It consists of the cost of marketing and advertising, the cost of understanding their needs and expectations, and the cost of teaching them how you work.
Customer Relationship Management (CRM) is your best solution as a manager to ensure customer loyalty. Even more important is the importance of CRM to employees. Because human resources are at the core of any business, employee performance can increase or decrease depending on the strategy you choose and the tools you provide. Customer relationship management is exactly the strategy and tool that will ensure your success if it is in your hands and the staff of your organization.
With CRM, loyal customers are not a random phenomenon caused by the friendly behavior of a sales or service employee. Rather, these customers are created through an organizational insight and intelligence that results from the data being transformed into information that results in behavior consistent with customer preferences.
In the current business environment, the benefits of CRM has grown so much that CRM implementation is no longer a choice but one of the key factors for success in any organization.
Better time management
One of the benefits of using CRM is providing more customer satisfaction. With this strategy, all operations, including servicing, marketing, and selling products to customers, are performed in an organized and principled manner. Understanding the issues can help you better serve customers, which in turn helps to increase customer loyalty and reduce customer dissatisfaction. This way, you can save time and get constant feedback from customers about your products and services. You are also likely to be introduced by your customers to their acquaintances because of efficient and satisfactory service delivery.
One other benefit of Using a CRM strategy for your business is that you can significantly increase your revenue. Also, Using data collection methods can make it easier to introduce marketing campaigns to people more effectively. This will lead to better time management and thus, your company’s revenue will raise the roof!
Upsell and cross-sell
You probably went to a store to buy a casual suit for a medium price and when you entered the store you were sure you wouldn’t pay more than $ 3,000 for it, but when you got out, you realized that The seller made you pay $ 6,000 for this dress. This technique is called Up Selling. In this case, the seller will convince you to pay a higher price for what you originally intended to acquire a more valuable commodity.
Also, You have gone to a mobile phone shop to buy a 500$ smartphone for example. When you buy a 500$ smartphone, the seller also suggests you get a protective cover for its screen. After gluing the cover, he (the seller) offers you a good case for your new smartphone. After you purchase a cover, he also suggests you with a memory card and he also sells you a Bluetooth handsfree to use your phone when you are driving. Navigation software is also needed…
You will come to a summary and you will find that 720 dollars have been invoiced to you! This technique is called Cross-Selling, which involves selling accessories and extras for a product.
Another example of this is done by fast food retailers, When ordering hamburgers, they also sell you fried potatoes (Cross-Selling) and sometimes lead you to buy a combo of burgers, potatoes, soda and a dessert (Up Selling).
Following a CRM strategy helps build a better relationship in a company. Sharing customer data across different parts of a company allows you to work as a team. It’s better than working as a standalone entity, as it helps you increase your company’s profitability and provide better customer service. With the assist of CRM, sales staff will be able to collaborate better with other units such as marketing and finance because the data they need is stored in a system. They can also share marketing ideas that lead to similar potential customers.
Unlike email that scatters customer information, CRM provides you with an integrated platform for communicating with customers. With this capability, employees can easily view and respond to customer messages.
The reason why customer retention and customer relationship management has such a huge impact on profitability is clarified by Rich Held and Sasser:
- Acquiring new customers involves costs that can be dramatic and may take several years for the new customer to become a profitable customer.
- When customers are more satisfied with their relationships with their suppliers, they are more likely to give a higher percentage of their trust and revenue to the supplier.
- As customer relationships develop, greater mutual understanding, collaboration and efficiencies will be achieved that reduce operating costs. Sometimes customers tend to integrate their IT systems, including scheduling, ordering, and supplier scheduling, which further reduces costs.
- Satisfied customers are likely to refer others to your company, which increases profits because the cost of acquiring these new customers has been greatly reduced. In some industries, customer advocacy can play a very important role in acquiring new customers, especially when there is a high risk of choosing a supplier.
- Loyal customers can be less price-sensitive and less likely to turn around due to price increases. This is especially true in company markets where relationships with the supplier are valued and the cost of switching from one supplier to another is high.
However, despite these findings, the present study indicates that managers have been slow in realizing changes in marketing activities to emphasize customer retention.
Research has shown that 75% of customers believe that if their waiting time is long, they will be upset and may even hang up the phone on you. Customers do not want to wait more than a minute or two, so try connecting them quickly or providing them with a voice mailbox. In this case, customers will not be dissatisfied with your company and will not leave you.
Also, Customer support and accessibility is one of the most important parts of the company. They are the bridge between you and your customers, so try not to ignore this. According to surveys, 78% of customers never go to businesses that lack support and accessibility. In fact, when you lose customer support, your customer service is lost. So try to take this part of your company seriously.
Most businesses have duplicate tasks that follow a specific pattern, such as sending monthly reports to customers or weekly follow-ups. These processes can be programmed automatically with CRM software so that uniform activities do not disrupt employees.
Business Task Automation is an approach that organizations use to perform many of the repetitive processes as systems instead of humans, to improve productivity, reduce costs and reduce paperwork. It is a subset of the larger discipline of business management, which also includes managing complex organizational processes through a combination of different approaches. In addition, task automation helps to simplify tasks performed manually and complexly, as well as a convenient application of office automation in business; It reduces costs, manages information and processes, monitors processes in real-time, and uses resources more accurately. Also, The long-term benefits of office automation tools and CRM will increase process efficiency and stability.
Acquiring new customers
In today’s competitive marketplace, finding a new customer is difficult. This makes customer acquisition and retention strategies cost-effective for startups to succeed, but what most startups overlook is the value of the best customers and their ability to help companies gain new customers.
Also Read: Why Your Business Needs a CRM System
For a startup, quickly identifying and building relationships with happy and popular customers can bring great benefits. If done correctly, new customers can be attracted through existing customers and their referrals.
- Using CRM to make new customers happy
A happy customer is the best spokesperson for a business, but how do we find them? Sometimes people want to take the first step toward achieving their goals and appreciate you for helping them, but most likely, you have to be forward-looking. It’s important to be available, keep track of your customers, and create channels for customers to easily refer to you with their praise or concerns. Asking will never harm you. Adding testimonials to your website is one of the easiest and most effective ways to validate your business and boost your sales by Acquiring new customers. By cultivating a happy customer, nurture your relationships with them, have personal conversations, give them feedback and get customer feedback, and always make sure you value them.
New customers are reluctant to hear your ideas about your business. They want to know if anyone else in your industry has succeeded with your product or support. Good feedback will solidify your sales pitch, so go out and hear real success stories and share them whenever you want.
Growth of business revenue
Sometimes selling more products alone is not going to meet your business threshold because you have incurred so much to increase sales! In this case, you should use CRM techniques to optimize your sales process. Every business owner expects to increase the sales of their products as the business grows. Given the current economic situation and the growth of online businesses, most business owners prefer to start their own business by starting an e-commerce business. Because the most affordable way to start a business is to start up online first.
- Pay attention to the needs and wants of the customer and interact with them
Having the right understanding of customer needs and desires is the key to success in sales. If you are designing a new product as a product provider by interacting with the customer and anticipating his needs, he will surely be much appreciated. In addition, keeping track of customer satisfaction with the purchased product can have a tremendous impact on improving customer service and understanding customer needs and thus the Growth of business revenue.
- Smart pricing
Smart pricing is the most important part of sales. Remember that consumers of luxury goods also tend to compare prices in their purchases to make the final decision. Pre-pricing market research, high-quality product offering, diversification of products with different price ranges, and customer value added are the most important pricing strategies. Paying attention to these points is the key to smart product pricing and a new selling technique for businesses.
Customer relationship management has come a long way in the last 5 years (at least compared to other business solutions). Nowadays, with the growth of social CRM, marketing automation solutions, Big Data and mobile CRM applications, the industry is constantly evolving to meet the new needs of 5th-century businesses. The CRM market is expected to grow to $ 45 billion by the year 2020, and this methodology will grow faster than other business solutions. Since CRM as a whole and one of the most unique types of business software is the foundation for the growth of the industry, it is important to know how businesses really use CRM Where they will be in the coming years to make progress. We provide you with a study, in which, five US customer relationship management software users were surveyed through an online questionnaire to find out how businesses find, buy, and use their CRM software. Whether you use this software, are looking to buy it for your company or you are a CRM technology vendor, you can use the results of this review. Below, we provided some statistics about CRM usage in companies and it’s importance:
- Cloud-based services as a CRM solution!
Cloud-based services are considered very important in CRM solutions for today’s businesses. in the picture below you can see the difference that cloud-based CRM software and services can make.
- Why companies choose CRM?
- Investment of CRM
In the business arena, customer retention and business expansion are vital. The costs involved in finding new customers demonstrate the importance of maintaining each existing customer. The more customers have the opportunity to deal with your business, the more likely you are to succeed. Customer Relationship Management (CRM) enables senior executives and supervisors of different business teams to identify the best practices and empower them to retain customers.