Customer Relationship Management – the concept doesn’t really need explaining so let’s focus on the why and how.
If you’ve not got any system for recording information about your prospects and your customers – you’ve not got a business.
If you’re using Excel, Google sheets, Word or some other non-specific CRM software then at least you are storing the info somewhere other than the recesses of your mind! However, what you currently have is a database and, unless you’re an absolute Excel whizz, you don’t have the ability to analyse the data to help make informed decisions on how to improve your business.
In the modern world, customer relationships are more critical than ever. To survive (let alone thrive) and remain competitive, businesses must be effective at Customer Relationship Management (CRM).
An effective CRM system is the brains of your business allowing you to streamline operations, enhance productivity, build relationships with new customers and then nurture them into loyal customers to who you provide as many useful services to as possible.
So, why isn’t your business yet using one?
Lack of Awareness: Many businesses don’t understand the benefits a CRM system can provide and, until they do, they’re unaware of the functionalities and long-term value it offers.
Cost Concerns: Some businesses perceive CRM systems as too costly an investment (in terms of cost, time and resources) because, as above, they don’t understand the benefits it offers.
Resistance to Change: No sugar coating this, implementing a CRM system will require changes to existing processes, workflows and culture. Unless handled in a considered and structured manner, businesses may encounter resistance from employees who are comfortable with established systems or hesitant to adopt new technology.
But my business is doing just fine without one, Owain.
Sure, plenty of businesses get themselves off the ground and enjoy success without one. The question to ask yourself is whether your business can grow using your current CRM methods? How easy it for you to identify buying trends? Can you find out quickly which customers are spending less than previously? Do you know all of the products/services that your customer needs from you and does your system highlight which they have and which they don’t? What happens if, and I obviously hope it doesn’t, your office burns down – can you easily & quickly access the info to help keep your business running?
Still not convinced? These are 2 of the major issues that businesses who choose not to use a CRM system face which prevents them from growing:
Disjointed Customer Data: Without a centralised CRM system, data is scattered across different platforms and databases accessible by different users in different ways. This makes your business inefficiencient because of duplication of efforts & inaccurate customer information which is very difficult, if not impossible, to analyse and use strategically.
Missed Opportunities: If you don’t have a CRM system, how does your businesses understand and engage with your customers at the right times? How many times have you missed opportunities to personalise interactions, anticipate needs and deliver a superior customer experiences because of not having a way to know all of this?
So far this blog has explained what a CRM system is, sought to understand why your business is not yet using one, highlighted a couple of key issues which may resonate and, now, here are, based on research data from the UK, three key benefits of using a CRM system:
Improved Customer Retention and Satisfaction: According to a study by Aberdeen Group, businesses who use* a CRM system enjoy an average 27% increase in customer retention rates. By centralising customer data and tracking interactions, these businesses can provide personalised experiences, anticipate customer needs and proactively address issues. This means they see increased loyalty, satisfaction and positive word-of-mouth referrals from their customers which, ultimately, results in more revenue and more profit.
Enhanced Sales Performance: Research by Nucleus Research has shown that businesses who use* a CRM system boost sales productivity by an average of 15%. CRM systems enable sales people to manage leads, track customer interactions and identify upselling or cross-selling opportunities. This improves sales forecasting accuracy and increases conversion rates which, again, leads to more revenue and more profit.
Effective Marketing Campaigns: A CRM system provides valuable insights into customer preferences, behaviour and purchase history. By leveraging this data, businesses can tailor marketing campaigns to deliver targeted messages at the right time to the right audience and not waste marketing budget. Research by Merkle shows that CRM-driven marketing campaigns achieve an average 5-10% higher conversion rate compared to non-CRM campaigns. Can you guess what that results in??
*As mentioned earlier, investing in a CRM, whilst a wise move for any business wanting to grow, is not a simple process. After reading this blog, you may well be convinced it’s the right move for your business and you want to take action – just now don’t make the mistake plenty of other businesses do!
As the owner of your business, you will of course have lots of ideas as to what you can get out of the CRM and that is obviously important for you to think like that. However, please make sure you consult with the people who will need to be using it on a daily basis so as to get their input – this will help you choose the right package for your business as well as aid the adoption of it because the regular users will feel involved in the decision.
I cannot stress this enough – if you choose a package without consulting anyone and then inform your staff as to what’s happening along with your expectations as to how it needs to be used, it won’t matter how much training you arrange for them – it’s doomed to fail causing even bigger issues for your business because of no ROI, damaged credibility and extremely demotivated staff! I know as I’ve made this mistake before and I’ve seen plenty other businesses do it too….you have been warned!
There are 100s if not 1000s of choices available for you. If you’re serious about investing in one but don’t know where to start, contact me so I can first understand your why before making some recommendations as to which to explore further. If you then need some help building it in a way that’s bespoke to your business (this is key – don’t buy an off-the-shelf one with no customisation), I can also help you with that and help you quickly – mainly because I’ve wasted time and effort previously in building them so I like to think I’m nowadays pretty slick at it!
My final words are for you to remember that a CRM is for life and not just for Xmas.
