What Does CRM Software Do For A Business: Is It Useful In Your Company?
Today’s business market landscape is very competitive and to get an edge over their competitors companies are often making use of customer relationship software (CRM) and other SaaS applications. This explains the growing popularity of cloud-based CRM solutions such as HubSpot or Pipedrive as the worldwide CRM software market is expected to top $37 billion in 2017. If you are still unsure of the efficacy of CRM apps we are here to help you. This article details what does CRM software do for a business exactly and explains how such tools can solve real-life problems for both small and large companies.
CRM can enhance the efficiency of your processes
You can use CRM software to replace inefficient manual processes in your company. Most apps usually have a simple and intuitive interface that can be easily managed even by inexperienced users. Another way CRM software improves efficiency is by seamlessly integrating with other business systems such as marketing automation apps. This enables companies to interact with customers in multiple profitable ways even with limited resources.
CRM allows for better team collaboration
You can migrate from old-fashioned spreadsheets to a modern CRM platform to improve collaboration in your company. Managing customer relationships effectively needs the help of multiple employees in units such as sales, marketing, technology, and customer support. With a cloud-based CRM system, your employees in different units can collaborate and work together effectively. You can even make use of workers in diverse geographical locations as cloud-based solutions can be easily accessed from anywhere at any time.
Another benefit is you can improve communication and collaboration between the employees in different units by enabling effortless sharing of customer data between them. Different departments will not function as isolated entities, but rather work as a single unit to provide better customer service and enhance your company’s profitability.
It offers you data insights
Many companies have a huge storehouse of data on customers. They can use this data to learn more about their customers’ buying patterns, purchase history, product interests and other aspects by using the visualization and data analysis tools offered by CRM apps. For example, leading CRM solutions such as Pipedrive and HubSpot CRM offer useful data analysis tools to help companies get actionable insights from their customer data.
It allows for enhanced accountability
If you don’t have the required tools to manage your customer lifecycle efficiently, you may miss out on many opportunities to enhance customer relationships and sales. This can be avoided by using CRM software which allows you to make your employees more accountable. They will understand their tasks better and be more responsible for meeting your customers’ needs. If they fall short, you can easily learn where they went wrong and take remedial steps to correct the issues early and make their customer interactions more effective and profitable.
It can improved company revenues
With a good CRM strategy, you can boost your company revenues a great deal. As mentioned earlier, you can analyze customer data to craft more effective marketing and sales campaigns. This way you can ensure your promotions for new products are targeted at a new set of customers and not previous ones. Plus, you can contact existing customers with good offers to encourage them to make repeat purchases. All these strategies can help to boost your customer revenue.
It lets you use up-sell and cross-sell opportunities
With information on customers’ interests, buying patterns, and purchase history at your command you will be able to improve your offer by up-selling related premium products. Plus, you can also do cross-selling more easily by offering complementary products you know they will need. The CRM software stores all customer data in a central database that can be easily accessed by your company executives. When the opportunity arises, they can contact customers to promote your products and engage in effective up-selling and cross-selling processes.
It improves your marketing efforts
By getting actionable insights on your customer needs and buying behavior, you can identify your most valuable customer segments. Plus, you can also get info on similar prospective segments. You can then focus on these two groups to efficiently optimize your sales resources. This strategy can also ensure that you don’t waste valuable time on less promising customer segments.
It contributes to better customer experience
Perhaps the most important benefit of all is your customers can enjoy a more delightful experience in their interactions with your company. You can segment them, identify their needs, and engage them with relevant content at the right time. This can enhance your sales, improve customer satisfaction, and enable you to engage your most valuable customers in profitable long-term relationships.
With an effective CRM strategy, you can market, sell, and service your products in a more systematic and organized manner. Plus, you can understand customer issues clearly and improve support which can enhance customer loyalty. You can also get valuable feedback from your customers on your services and products and take appropriate action. In short, if your customers are satisfied and happy with your product and service, they may recommend you to their contacts which will further boost your sales.
Real-life Problems Solved by CRM Software
A research study by CEB and Google indicates that customers who find emotional comfort in a brand are more likely to buy its service or product. Plus, they will make the effort to defend their buying decisions. Thus, it is not surprising that companies are using apps like CRM software to enhance their customer relationships. In this section, we look at examples of how businesses of various sizes are effectively using CRM software to enhance their customer satisfaction.
Wells Fargo is one of the top four banks in the US and it manages the property and money of about 70 million customers. Therefore, they go out of their way to optimize customer satisfaction. Wells Fargo uses CRM for social media to ensure their support staff is always accessible to customers. They also utilize CRM to make sure that customers with concerns are quickly directed to readily available staff members who can offer a prompt solution. Thus, Wells Fargo effectively uses cloud-based CRM software to enable their employees to connect around customers, building products, and risk management procedures.
Bespoke is a small business that offers art experiences, memberships, and fine wines. Their company depends on building intimate relationships with their customers. For this reason, they use CRM software to understand their customer’s buying habits and behavior. Their increasing customer base poses challenges, but Bespoke continues to offer personal attention to each one of them. When a customer buys a product, the next morning they receive a personalized email. Thus, Bespoke places great emphasis on relationship-based sales, rather than transaction-based. This enables them to enhance customer satisfaction and retention, order value, and referrals.
Activision is a leading player in the US video game market. In 2011, its Modern Warfare 3 video game raked in more than $400 million on the first day of launch. But, money is not the only reason Activision is in business. The company also focuses on providing great support to its customers to ensure they are enthralled and satisfied long after buying a game. It uses CRM software to track social media comments and conversations about its products. Then it acts on these conversations to learn about what customers need. Customer support via social media is less expensive compared to traditional methods, so the company has been able to reduce support costs by 25% while enhancing customer happiness at the same time.
CRM software can also be useful for small businesses such as Munchery. This company provides high-quality meals prepared by experienced chefs and sends the items directly to the customer’s location. The company is experiencing a high number of repeat customers as they are extremely happy with the food and service. Plus, there is also a huge number of new customers. Munchery uses a CRM solution augmented with an integrated proprietary application to provide what its customers want even at the last minute. The company explains that its goal it to go above and beyond customers’ expectations so that they can convert frustrated customers into evangelists. Munchery also uses CRM to share feedback with chefs, track orders, monitor performance, and measure customer happiness.
CRM Example: Freshsales
Sales teams often use three different systems for their daily work which are email to contact customers, a phone setup to make calls, and a marketing automation app for email campaigns. Freshsales is a boon in this case as it integrates these three important tools into one solution, thereby saving time and money for sales teams.
With a growing number of leads, companies may find it difficult to identify hot leads who intend to buy their product. This issue is solved by Freshsales’ automated lead scoring feature which helps your sales reps to contact promising leads at the appropriate time.
Sales reps often use LinkedIn and Google search to get more info and data on a lead. They can benefit from Freshsales’ Auto-profile Enrichment feature which automatically maps the social accounts of a lead in the software.
We hope this article has apprised you adequately on what does CRM software do for a business. There is no doubt that companies can benefit a great deal by effectively using a suitable CRM solution. If you are already experiencing the benefits, feel free to share the details with us.Category: B2B News