What is CRM?

 

Customer Relationship Management, aka CRM, combines technology and business strategy to build and enhance the relationship between a customer and a business. CRM tools gather customer data to establish and improve customer relationships. These tools analyze customer data during every interaction and create meaningful resources the company can use to target their customers better and create brand loyalty. The information gathered can determine each client’s value and the best means to retain the most valuable ones. Understanding the metrics allows a company to create better marketing, products, and services based on their most valuable customers’ needs. 

 

Goals of CRM

 

1. Increase customer revenue and value over time, resulting in higher profitability.

2. Increase customer satisfaction and brand loyalty through better customer service initiatives.

3. Optimize the customer life cycle management.

4. Improve the efficiency of sales and technical staff.

5. Allow immediate access to customer records, contact information, and sales data for better asset development.

 

Customer Relationship Lifecycle

 

Utilizing CRM tools, the professional sales force can predict and suggest analytics on the collected information. This allows the company to offer them better additional services and products that may interest them. This communication provides a helpful approach to anticipating the customer’s needs. CRM is also available for companies’ help centers, whether via phone, e-mail, text, or website chats. These more immediate avenues of service increase customer satisfaction. The three major areas of customer satisfaction that extend the lifecycle of a customer are:

 

1. Sales

2. Marketing

3. Service

 

CRM Tools

 

There are many tools that CRM programs offer to companies. The most common tools used to begin building customer relationships are:

 

1. Your online presence. Having a user-friendly website where customers can purchase goods and services is a must-have. Most CRM platforms can integrate with your website to collect the customer data your business wants to build solid relationships.

2. E-mail, phone, text, and postal mailers to customers encourage repeat business.

3. Promotional materials given to high-value customers will show increased appreciation to clients for doing business with your company.

 

How Much Does CRM cost to implement?

 

The cost of CRM implementation isn’t cut and dry. A 2001 survey conducted by The Data Warehousing Institute found that of the 1,600 companies and IT professionals surveyed, almost half had CRM project budgets less than $500,000. However, the same survey showed some companies with project budgets exceeding $10M. While the statistics are old and varied, a recent comparison of available CRM software options proves that costs are as diverse as the businesses. Business size, needs, and requisite features all go into factoring the cost. CRM doesn’t have to break the bank even if the sticker price may be higher than a business wants to pay. Keep in mind, CRM is an investment in the company for future growth and customer loyalty. In a Salesforce report, successful implementation can boost sales by 29%, increase sales productivity by 34%, and sharpen sales forecast accuracy by 42%.

 

What Causes CRM Projects to Fail?

 

The most significant pinch point for CRM projects is communication. This can include technology being implemented without buy-in from the end-users or without proper support. For example, if your sales team isn’t convinced that moving to a CRM platform will help them close more deals, they are less likely to utilize the tool after implementation. Communication is key.