Customer Relationship Management is about more than just the software. The point is to get to know (potential) customers at an early stage and provide them with tailored service. The CRM strategy sets out the organization's vision for CRM and the goals that have been determined. CRM software is the means to support this strategy. It may be an investment, but it's definitely one that's worth considering. Archie has listed a couple of reasons why.
Nowadays, almost everything takes place digitally and online. Anything important that still appears on paper gets scanned and stored digitally anyway. Managing data streams contributes to an organization's success. For example, it prevents customers from having to repeat their entire story over and over again every time they're bounced around inside the organization.
A CRM system contributes to the digitization of information. However, it's important to clearly establish what data is actually needed. This will prevent the CRM system from turning into a mere repository and avoid lots of money being spent on storing information that isn't relevant to the organization.
The larger and more complex organizations become, the more little islands will arise. But the customer doesn't want to hear anything about those. The customer just wants to receive good service. It's no concern of the customer that employee X has no idea who employee Y is or what he's done. With a CRM system, you don't need to know each other to be aware of the things you’ve done for the same customer as colleagues. A CRM system enables efficient teamwork within organizations, with a focus on the customer.
Segmenting according to customer needs
Keeping existing customers engaged and attracting new ones is all about offering relevant information. Tailored to their information needs. CRM software enables segmentation, so that information can be provided to measure.
Greater customer satisfaction
Reasons 1, 2 and 3 – not being bounced around and receiving relevant information – in turn lead to increased customer satisfaction. Higher customer satisfaction means customers are likely to interact more with your organization. They are likely to remain connected to your organization for longer, and may even begin to act as ambassadors.
The numbers tell the tale
Selling is about people, so people skills and gut feelings play an important role. But at the end of the day, you – or at least your manager – will want to see figures. How much time did it take to generate a lead, when did a lead turn into a deal, and how much did that deal yield for the organization? CRM tools offer the ability to perform analyses: which things are working as they should, and where are adjustments needed? Analyses that make it steadily easier for an organization to forecast; for example: based on what's happened in the past, is it realistic to expect those sales?