Customer Relationship Management (CRM) enables small business owners to address operational challenges, including declining sales, high customer churn, and inconsistencies between corporate revenue targets and salesperson commission policies (Aileron, 2014). CRM is probably one of the most valuable systems that any small business can implement. It is as important as the person being hired and has a much more important role than any employee in the long run (Jarrett, 2016).
According to Christian (2016), here are the reasons that value of your CRM system is so great:
- It allows you to register your leads and contacts. You never know when lead is ready to buy from you. Probably not today. Keep it warm. Getting started with organizing your customers and contacts is never too late. You need some basic categories to make your data efficient so that you can implement your CRM strategy to meet their needs (Christian, 2016). You need to be similar to customers, lost customers, prospects, suppliers, partners, potential partners, influencers, and inactive customers. You can also consider dividing your customers into A, B, and C customers according to the different customer plans for each segment.
- You can track all customer interactions – everyone from your company. The next time you talk to a customer or potential customer, you get the upper hand when you know what the company is talking about. You can make this person feel is considered and important. This history establishes a long-term relationship. E-mail should be on your system, not in everyone’s mailbox (Christian, 2016).
- It reveals the possibilities. How many prospects do you have “not sold”? Probably a lot. Most companies retain their current suppliers until they are ignored. That’s why keeping them alive and kicking in your CRM database is so important (Christian, 2016). If you have a choice of communications or a great seminar program, their business may be your next quarter.
Simpson (2016) stated that with a CRM system, you can readily tap into your customer database to:
- Identify profitable vs. unprofitable customers and take appropriate action
- Customize your offerings to meet customer needs
- Market the right products to the right customers
- Adapt your business to the changing requirements of your customers
- Measure customer satisfaction
- Increase your efficiency
- Lower costs for both sales and service
- Keep track of customer issues and respond effectively
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Aileron, A. (2014, July 07). Why Your Small Business Needs CRM. Retrieved February 12, 2017, from http://www.forbes.com/sites/aileron/2013/05/01/why-your-small-business-needs-crm/#70e5df626e72
Christian, H. (2016, December 08). 3 reasons why your CRM system is your most valuable asset! Retrieved February 12, 2017, from http://www.superoffice.com/blog/3-reasons-why-your-crm-system-is-your-most-valuable-asset/
Jarrett, C. (2016, December 16). 5 Reasons Why CRM Is Important for Small Businesses. Retrieved February 12, 2017, from http://www.businessbee.com/resources/sales/customer-relationship-management/5-reasons-why-crm-is-important-for-small-businesses/
Simpson, K. (2016). Why Every Small Business (Yes, Even Yours) Needs a CRM System. Retrieved from https://sba.thehartford.com/marketing/why-every-small-business-needs-a-crm-system