These days, businesses are more and more aware of the importance of customer relationships. That’s why Customer Relationship Management (CRM) systems have increased in popularity in recent years. But, what exactly is CRM, and does your business need one? What are its benefits and how does it work? Let us start looking into CRM and discover how it can help your business!
CRM and digital CRM
Customer Relationship Management (CRM) is a technology that businesses use to manage how they interact and build relationships with customers. With CRM, customer data is turned into information that helps in improving the overall customer experience, resulting in a more targeted and effective marketing campaign. The CRM system helps them streamline the processes to boost sales, improve customer service, and increase profitability and sustainability.
Meanwhile, digital CRM is an advanced form of CRM where Internet communication channels and technologies are used to further enhance CRM processes. In this digital era, it’s safe to say most CRM systems have gone fully digital.
How CRM boosts revenue
Is CRM directly impactful to a business’s revenue? According to Forrester, CRM helps increasing sales conversion rates up to 300%. With CRM, a business can know its customers in greater detail.
CRM systems help businesses manage customer profiles, keep important notes about them, and address their needs better. When customers’ needs are fulfilled, they will be retained longer in a business instead of leaving, and make more purchases. The long-term result is more sales and hence more revenue.
The importance of CRM for businesses
CRM is not just important for knowing customers’ needs and boosting revenue. Here are other benefits of CRM that businesses can reap:
Turn customers into advocatesWhen customers’ needs are better addressed, they are more satisfied with a business, and more likely to spread the word about it.
Improve products and servicesUsing CRM enables businesses to keep track of customers’ feedback on their products and services. If certain products are underperforming, they can easily identify and evaluate the reasons.
Increase customer retentionRetaining an existing customer is much more profitable than acquiring a new one. CRM helps businesses stay connected with customers for the long run.
How CRM works
Now that you know the benefits of CRM, it’s time to find out how CRM works in practical terms so that you can apply it to your business.
CRM systems usually offer a wide range of features. Here are some of the most common ones that you should know:
Lead managementCRM helps businesses to keep track of their leads by entering their data, communicating with them, and tracking their journey.
Marketing automationCRM eases tedious marketing tasks such as blasting emails to customers, posting on social media, sending messages about ongoing offers, and so on. The main goal is to stay engaged with customers in every step of their journey, so that the business always stays in customers’ minds.
AnalyticsWhen running a campaign, businesses are not always sure which campaign is the most successful in bringing sales or attracting customers. With CRM, businesses no longer have to second-guess this because CRM systems provide valuable insights which allow businesses to evaluate the success of their campaign. If the results are unsatisfactory, businesses can save a considerable amount of resources from re-running similar campaigns and come up with more effective ones instead.
PersonalizationNo matter how niche-specific your product or service is, not one of your customers is 100% similar to the other. Each of them has unique preferences, habits, and needs. Manually, it may be impossible to cater to all the different needs in the same level of effectiveness.
With CRM, you can create more personalized and consistent experiences in every marketing channel your business has. For example, you can tailor rewards based on their favorite products, or send specific rewards on their birthday or customer anniversary. This makes customers feel more valued and stays in your business longer.
CRM is an essential tool for businesses. The sooner businesses realize its importance, the sooner they can start retaining their customers better. TADA has helped many businesses launch effective CRM systems to sustain themselves better. Feel free to contact us if you would like to learn more about CRM or want to start implementing it in your business!