Every business is built around its customers. Effective customer relationship management (CRM) will enable a company to grow successfully and have a long, profitable future. So, what exactly is CRM, and why is it important?
What is CRM?
The term CRM is often used when referring to the software used to track the actions of your customers, but it actually has a much wider meaning. CRM involves learning about your customers and their needs, behaviours and activities that drive them to interact with your brand, then using this knowledge to adapt your processes and deliver an improved service. Technology can be used to support this understanding; collecting wide-ranging consumer data for your analysis.
Why is it so important?
CRM is crucial for fostering customer loyalty and retention. Studies have shown that it can cost five times more to attract a new customer than it does to retain an existing one. Furthermore, the probability of selling to an existing customer is 60-70%, compared to 5-20% when selling to a new lead. By using CRM to recognise the value of your customers and improve your business activities, your customer retention will increase, which will have a knock-on effect on your sales and long-term profitability.
Working with CRM software will give your business data on all kinds of customer interaction, for example, phone calls, emails, online activity and meetings, as well as insights into how deals are won and lost. This customer data is hugely valuable to improve your understanding of your target market and to guide your future sales and marketing strategies. It will also inform you about your customer service operations; what areas need attention to facilitate customers through the sales funnel?
Having a CRM solution is invaluable for a business’ survival. Not only will it help you maximise revenue and longevity from your current customers, but it will also ensure your sales, marketing and customer service are optimised for converting new business.