Why does my business need CRM?
The better a business can manage the relationships it has with its customers the more successful it will become. Therefore IT systems that specifically address the problems of dealing with customers on a day-to-day basis are growing in popularity. CRM is not just the application of technology, but is a strategy to learn more about customers’ needs and behaviors in order to develop stronger relationships with them. As such it is more of a business philosophy than a technical solution to assist in dealing with customers effectively and efficiently. Nevertheless, successful CRM relies on the use of technology. CRM helps businesses to gain an insight into the behavior of their customers and modify their business operations to ensure that customers are served in the best possible way.
In essence, CRM helps a business to recognize the value of its customers and to capitalize on improved customer relations. The better you understand your customers, the more responsive you can be to their needs. Implementing a CRM solution might involve considerable time and expense. However, there are many potential benefits.
A major benefit can be the development of better relations with your existing customers, which can lead to:
- Increased sales through better timing due to anticipating needs based on historic trends.
- Identifying needs more effectively by understanding specific customer requirements.
- Cross-selling of other products by highlighting and suggesting alternatives or enhancements.
- Identifying which of your customers are profitable and which are not.
This can lead to better marketing of your products or services by focusing on effective targeted marketing communications aimed specifically at customer needs and a more personal approach and the development of new or improved products and services in order to win more business in the future.
Ultimately this could lead to: enhanced customer satisfaction and retention, ensuring that your good reputation in the marketplace continues to grow, increased value from your existing customers and reduced cost associated with supporting and servicing them, increasing your overall efficiency and reducing total cost of sales, improved profitability by focusing on the most profitable customers and dealing with the unprofitable in more cost effective ways.
Once your business starts to look after its existing customers effectively, efforts can be concentrated on finding new customers and expanding your market. The more you know about your customers, the easier it is to identify new prospects and increase your customer base. Even with years of accumulated knowledge, there’s always room for improvement. Customer needs change over time, and technology can make it easier to find out more about customers and ensure that everyone in an organisation can exploit this information.
Stilesforce has been dealing with CRM solutions since we came in to existence. We’re more than happy to share with you what we know and how you should get an effective CRM system set up for your business.