Posted on by naveen

CRM Importance In Business - A Comprehensive Overview

Before signing up your company for any CRM software and leveraging its powerful customer relationship management feature, the firsthand question that you have to ask yourself is, “Why do I need a CRM Software?” Yes, the question ‘Why’ simplifies your CRM selection process, and you will end up choosing the right CRM solutions for your business. Though it is frustrating to go through numerous product sites and review sites to identify the best online CRM, we have made your task easier by listing down the importance of CRM in the business world.

By going through this list, you will be able to identify “the qualities” that your business requires and easily sign up for a software that caters to this prerequisite. Remember, it is not at all recommended to choose the best CRM, instead, go for the CRM Software that is actually beneficial and right for your business operations.

Before venturing into the advantages of customer relationship management software like Apptivo in business, we will discuss the evolution of this automated solution.

Evolution

The concept of “Customer Relationship Management” has existed since the beginning of time. Be it – the very first model of business, the barter system, transaction through coins, or now, currency notes. In any mode of a business transaction, businesses have to have a good reputation to bring in more customers and retain the existing customers. For this, there has to be efficient management of customer relations. In short, the role of CRM in business was never absent from the world. Rather, it had left its footprints since the development of trade.

CRM Evolution Inforgraphics

Importance Of CRM In Business

The significance of CRM solutions varies based on the scope of your business. Imagine you are running a small-scale business, you may not be in need of all the features endorsed in an online CRM. Rather, the importance of customer relationship management in small business is quite specific. Based on that, you have to select the app.

Some of the most prominent businesses of the world utilize relationship management software to manage their business operations. They invest in advanced automation tools to streamline their operations and put together the inter-departmental engagement. The end result – more productivity, less workflow redundancy.

On the query of the value of Customer Relationship Management in business, the following section would shed light on the ‘why’ part while going for CRM software.

Database Management

With the influence of this powerful cloud solution, sales and marketing teams can manage an exclusive database to feed information on their customers, leads, opportunities, employees, and contacts. Here, you can keep track of all forms of engagement with the customers.

The collaboration tools like task manager, notes, calendar, call logs, and emails assist in improving transparency among your employees. This can be accessed effortlessly from anywhere at any time.

Picture this: Dave is one of your employees in the sales department and due to some personal reason, he had to leave his position midway without any prior notice. To take over Dave’s position, you have hired Caroline. Since there was no proper time for the handover of responsibilities, it will be difficult for Caroline on what to do and where to start. Though someone from the team can explain the basics, the main tasks managed will not be clear unless there is a proper system. If you have opted for an online CRM system, Caroline can easily retrieve the tasks assigned to Dave and find information on the status through the collaboration tools.

Customer Retention

There is no doubt that customers are the pillars of a successful business. That being said, businesses focus on retaining their customers. According to Smallbizgenius, 82% of companies agree that customer retention is cheaper than bringing in new customers.

Therefore, a small rise in the customer retention rate results in higher profits for your business with minimum investment. The main ingredient of a customer retention strategy, the customer service becomes efficient and simple by leveraging the helpdesk tools offered in the customer relationship management solutions.

Consider: You are running a retail store that sells clothes to customers. Clothing is a basic necessity. However, not all people purchase clothes all the time. For this reason, most clothing stores collect information about their customers when they purchase their products. This will help them to keep in touch with their customers and help them communicate important information like the store timing, sales, loyalty programs, and other major news to their customers. The importance of CRM in retailing is that it helps to increase the lifetime value of customers through their help desk management system.

Data Analysis

Though there are different types of selling, the one method that has gained popularity and acceptance from market analysts is Data-Driven Selling Approach. According to Gartner, 60% of B2B sales organizations will transition from experience and intuition-based selling to data-driven selling by 2025. This explains the gravity of metrics and how they structure the sales strategy of businesses. Hence, key performance indicators (KPIs) based analysis helps not only in sales analysis but also in introspecting your teams’ performance.

Assume: You are managing a global business and hence, you cannot apply the same sales strategy throughout the globe. Instead, you have to analyze the customer segments and devise your sales strategy accordingly. Similarly, it is crucial to monitor the performance of your salespersons regularly in order to ensure stable delivery of customer service. In short, metrics design your overall sales and marketing strategy.

Conclusion

What we covered in the above post covers the most fundamental importance of CRM in business. As your business grows, and you start exploring your CRM system, you will move away from your traditional business management and make use of the powerful automated tools to manage your overall business workflow. Your customer relationship management software combined with an engaging sales and marketing team opens the door to multiple opportunities and scope for your business. We can conclude that this powerful software has become an integral part of business management applications and sales communities across the globe.

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