Long gone are the days where Customer Relationship Management (CRM) was just for large businesses. In today’s fiercely competitive market, businesses of all sizes need to leverage CRM software if they want to stay competitive.
Despite what one might think – or the name may suggest – a CRM software is not only used to build a relationship with customers. A CRM software can increase your business’s productivity and efficiency. It does so by allowing you to organize your data, streamline the sales cycle, and get insights into the performance of your business.
Small businesses looking to increase their profitability should also be using a CRM software. In fact, companies that have integrated CRM in their business infrastructure are consistently reporting a 20% increase in profit margin, and the average ROI on CRM is reported to be around 5.6% for every dollar spent.
By focusing on their relationship with customers and building these relationships, businesses can grow their relationships with their customers, engage their customers, and – most importantly – maintain them.
What is a CRM Software?
In one sentence: A CRM software is a consumer data management software that helps business owners grow their businesses.
A CRM software is – in its simplest form – a consumer database that contains all the consumer data that a business manager or owner needs to track the customer’s communication with the company.
The software allows the sales team to gather in-detail information about the customers such as their shopping behavior, preferences, and buying habits.
The software also makes it easy for managers to track pending tasks, forecast sales, make quotes, and schedule appointments and calls.
So, in a nutshell, a CRM software can be a game-changer for your business. If you’re not convinced and/or haven’t yet integrated it into your business, then the next part may convince you to start using it.
8 Reasons Why Small Businesses Need CRM
- Increase sales
Probably the most important reason of all. A CRM software helps you increase sales by giving sales personnel a more granular view of a sales cycle. It will allow your sales team to identify the buying preferences of existing customers as well as potential customers.
Once your sales team figure out the requirements, needs, and preferences of your existing and potential customers, they can target the right customers quickly while also nurturing the current leads. This means your sales team will also not waste time following prospects that won’t lead to anything useful.
- Increase efficiency
Speaking of not wasting time, a CRM software can improve the efficiency of your whole workforce and not only the sales team.
By knowing what the preferences of your customers are – both existing and potential – you can become much better at offering them something that they are more likely to go for. A CRM software helps you keep all the detailed information about your clients in a single dashboard that’s easily accessible by your team.
- Keep your team on the same page
Many CRM Systems helps you collaborate with your team. So, if one person communicates with a customer or lead, he or she can put the relevant information into the software so that any member of the team can access this information the next time they communicate with that person
- Organize Your data
A CRM tool is designed to help you input and manage data about your customers and leads in a way that helps your team without you needing to waste time and resources to create your own system to manage the data.
The software also ensures that whenever you are communicating with a customer, you have all the info you need to know about them and their history, so you can have the best chance of making a sale to them.
- Improve and grow relationships with clients
Customers want to be heard. They want to feel like they are connecting with another human – and not a robot-ruled company. They want to be able to express their ideas, excitement, and complaints.
Research has shown that 55% of consumers are willing to pay more for a product when they are satisfied with the customer service of the company selling the product.
It is a rule of thumb that customer’s satisfaction is crucial to the success of any business, and it is especially the case for small businesses looking to grow their customer base.
The customer is always right being not an outdated saying from the past. It is very much true today as it has ever been, and a CRM system that can respond to the needs and complaints of customers quickly will have a significant effect on the overall customer experience and thus helping you grow relationships with customers.
- Improve Customer satisfaction
You can expect great improvements when implementing a CRM system into your business. It can give customers the impression that the company remembers and understands their unique needs and preferences. Some CRM software has advanced features like updating your clients with the company’s happenings and sending them happy-birthday messages and things like that.
- Minimize Costs
If you are not using a CRM software, you are using some old-fashioned way to manage your clients’ data. This could be using paper, documents, and files.
In fact, 58% of European companies use paper and store their records in office premises.
This kind of paper waste is not only harmful to the environment, but it is also a waste of resources that could be completely avoided by using a digital system. There are so many benefits of using a digital system over a manual one that the choice shouldn’t take any thinking at all.
You save time, money, and you store the records permanently. It’s much easier and faster to access the data and navigate the software than it is to do with documents. Any employee can find and access the data of any customer with the click of a button.
You also never have to waste office space for piles of documents because everything is stored in the cloud.
- Access it anywhere
Many CRM software solutions are cloud or web-based and offer mobile solutions. This means that the data can be accessed from any device from any place in the world at any time. There’s never a reason to hold-off work till you get to the office because work can be done on the go.
I hope you now know why you need a CRM software and have become convinced to try it out and see the results.
The next logical step would be to decide which software to get, and for this, we’ve got you covered. Take a couple of minutes to learn how to choose the right CRM software for your business and if you have any questions or comments, feel free to leave them below.