Technically put CRM stands for Customer relationship management (CRM). It’s a software tool that helps organization manage their connects to existing and potential customers. Simply put it is a technology for managing your organization’s relationships and interactions with all the people in their life cycle, i.e. customers, suppliers, service Users or colleagues. The goal is simple, to Improve business relationships. The system uses the past data collected and analyses it to see potential growth activities, customer retention and driving sales growth. The system helps companies streamline processes and stay connected to their clients, finding potential customers and providing support and services throughout customer lifecycle. It is a multitasking system that provides you with timelines, day to day statistics, reports, customer preferences etc. it also helps in automating daily tasks performed on regular basis and on each client accounts. The possibilities are huge and the functionalities countless. The system is here to stay and a mark to be made. What are its benefits and utilization? CRM systems are a huge asset to a company if utilized in the right manner. Organizations ranging from small to largest corporation are using CRM’S to their advantage. Here are a few key benefits of using CRM that most agree on. 1.Customer Retention: The single most important factor in any organization is customer retention. It is a known fact that higher customer retention rates translate into increased revenues. Studies conducted by HBR have showed that 5% reduction in your customer defection rate can increase your profits anywhere from 25% - 85%, this in itself is a golden benefit to use CRM. Analysis done using CRM system helps in gauging out touch-points for an account. This in order helps your team to proactively target customers and reach them at the right point. 2.Customer Satisfaction: Another crucial benefit of a CRM system is customer satisfaction. By data analysis everything from communication to handling issues to marketing efforts can be done in an organized and systematic way. Better services can be provided to the customer through improved understanding of their needs and requirements. Since CRM provides a collated data for each account in case an issue arises it can be quickly tackled by a representative, as all data relating to that customer is a keystroke away, starting from preferences, past issues(tickets), purchases etc. 3.Improved Marketing Strategy: The marketing strategy of a company always runs on hundreds of variables through all ends of the company. With each changing variable the strategy changes as is apt. A CRM system is a goldmine when it comes to these variables. By understanding the customer needs, his preferences and behaviour one can target his strategies to target potential customers, sell new products or even upgrade existing products and services. The system helps in customer segmenting. It helps in target group recognition. As well as tap into more profitable customer group. All in all, it will help focus and manage marketing resources to its maximum potential saving time, money and efforts. 4.Improved Analytics & Reporting: CRM is a shared central data repository; it is also analytical tool that helps in creating insightful reports. It helps in eliminating possibilities of miscalculation leading to poor management decisions. It generally has a customizable dashboard, home to all statistical information, sales goals etc that your team wants to have an eye on at all times. 5.Improved Internal Communication: Organizations work best as a well-oiled machine; information sharing is the key for a smooth flow of work. We have seen many projects fall apart since people in different departments were lacking mission critical information. The central repository system ensures that all needed data for a smooth operation is always at your fingertips and everyone is ready to play their part efficiently and swiftly. 6.Automation: There are hundreds of day to day tasks that have to be done repeatedly with each of your clients such as form fillings, filling, reports, legal paperwork, disclaimers. This in itself is a tedious labour and monotonous work. The organization would greatly increase efficiency by automating such tasks and will also reduce manual errors by doing so. A CRM system has functionality to automate such task built into the system. Overall a CRM system has huge benefits that justifies the cost of implementing one in your organization. That is probably why we are seeing a trend in the popularity of CRM systems and an increase in CRM service providers across the globe. Where can A CRM System Be Implemented & Do you Need It The short answer to this question is “everywhere by anyone and yes”. If you have a product to sell, a service to provide, or you deal with clients and customers in any way, you probably do need a CRM. If you want your business to grow, you would probably need to invest In a CRM system sometime in the future or now. No matter how large or small your business is, having all of your customer and business data in one place will definitely make it streamlined and organized, and your business more efficient. CRM are naturally being used by organizations with a customer base. Thy are their biggest users for sure. It is the biggest asset for a sales team. Giving them the greatest tool to generate leads and close deals. It also ensures a positive customer experience. CRMs are sales centric but also incredibly useful for marketing and customer service. All said CRM can and is used by many different departments and business types, if there is a relationship to manage, a CRM can help. Just like no business and operations are alike CRMs are customizable and comes with may shapes and sizes and most often modules customized to the organization it is implemented in. CRMs are being majorly used in retail, business services, technology, banking and finance, and manufacturing industry.
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