Why CRM? Know the Importance of CRM

Introduction

According to Peter Drucker, the goal of any business is to create a customer. and maintaining these customers and engaging relationships with them.

Cost/Pricing:

Most of the customers will benefit your organization after at least two years Because new customers would cost you so much. It consists of the cost of marketing and advertising, the cost of understanding their needs and expectations, and the cost of teaching them how you work.

Customer Relationship Management is your best solution as a manager to ensure customer loyalty.

Organization Scenario:

The human resources are at the core of any business, employee performance can increase or decrease depending on the strategy you choose and the tools you provide. CRM is also the strategy and tool that will ensure your success if it is in your hands and the staff of your organization.

In the current business environment, CRM benefits are the key factors to success in any organization.

Why CRM so important to any organization?

Better Time Management

One of the benefits of using CRM is providing more customer satisfaction.

With this strategy, all operations, including service, marketing, and selling products to customers, are performed in an organized and principled manner. Understanding the issues can help you better serve customers, automatically it turn helps to increase customer loyalty and reduce customer dissatisfaction.

This way, you can save time and get constant feedback from customers about your products and services. You are also likely to be introduced by your customers to their acquaintances because of efficient and satisfactory service delivery.

Upsell & Cross-Sell

Upsell:

In this case, the seller will convince you to pay a higher price for what you originally intended to acquire a more valuable commodity.

Upsell Example:

You probably went to a store to buy a casual suit for a medium price and when you entered the store you were sure you wouldn’t pay more than $ 3,000 for it, but when you got out, you realized that The seller made you pay $ 6,000 for this dress.

Cross-sell:

In this case, the seller will convince you to pay a price for what you pay the product along with extra addons of the product.

Cross-sell Example:

You visited a mobile phone shop to buy a 225$ smartphone. the seller also suggests you get a protective cover for the mobile screen. After gluing the cover, the seller offers you a good case for the mobile. After you purchase a cover, he also suggests you with a memory card and he also sells you a Bluetooth handsfree to use your phone when you are driving.

summary: Finally, you will find that 600 dollars have been invoiced to you! This technique is called Cross-Selling, which involves selling accessories and extras for a product.

Another example of this is done by fast food retailers when ordering hamburgers, they also sell you fried potatoes (Cross-Selling) and sometimes lead you to buy a combo of burgers, potatoes, soda and a dessert (Up Selling).

Enhanced Communication

By following a CRM strategy helps to build a better relationship in a company. Sharing customer data across different parts of a company allows you to work as a team. It’s better than working as a standalone entity, as it helps you increase your company’s profitability and provide better customer service. With the assist of the CRM sales team will be able to collaborate better with other units such as marketing and finance because the data they need is stored in a system.

Cost-Effective

The reason why customer retention and customer relationship management has such a huge impact on profitability is clarified by Rich Held and Sasser:

• Acquiring new customers involves costs that can be dramatic and may take several years for the new customer to become a profitable customer.
• As customer relationships develop, greater mutual understanding, collaboration and efficiencies will be achieved that reduce operating costs.
• Sometimes customers tend to integrate their IT systems, including scheduling, ordering, and supplier scheduling, which further reduces costs.
• Satisfied customers are likely to refer others to your company, which increases profits because the cost of acquiring these new customers has been greatly reduced.

Task Automation

Many(traditionally) companies followed to create a few tasks manually. It may occur major issues like repetitive scheduling tasks, time and assigned to the team members, and also followup emails, reports, specific pattern etc..

These processes can be programmed automatically with CRM software so that uniform activities do not disrupt employees.

Business task automation is an approach that organizations use to perform many of the repetitive processes as systems instead of humans, to improve productivity, reduce costs and reduce paperwork. It is a subset of the larger discipline of business management, which also includes managing complex organizational processes through a combination of different approaches.

In addition, task automation helps to simplify tasks performed manually and complexly, as well as a convenient application of office automation in business; It reduces costs, manages information and processes, monitors processes in real-time, and uses resources more accurately. Also, The long-term benefits of office automation tools and CRM will increase process efficiency and stability.

Final Words

Customer relationship management has come a long way in the last 5 years.

Nowadays, with the growth of social CRM, marketing automation solutions, Big Data and mobile CRM applications, the industry is constantly evolving to meet the new needs of 5th-century businesses. We provide you with a study, in which, five US customer relationship management software users were surveyed through an online questionnaire to find out how businesses find, buy, and use their CRM software.