Why do businesses need Customer Relationship Management (CRM)? — Top 5 Reasons
“Focusing on the customer makes a company more resilient.” — Jeff Bezos (Founder, Amazon)
As of 2021, Jeff Bezos is positioned atop the Forbes’ 2021 400 Richest in America list. Bezos shares the secret of the tremendous success of Amazon to lie in customer-centricity. In fact, in the list of Amazon’s 14 leadership principles, the very first principle is Customer Obsession.
As a businessman, if you’re looking for a magic formula to outgrow your competitors, so you need to focus and build the best products for your customers. Amazon’s growth and success is the best example of strong customer service.
This blog post is to help you guide the ways you can improve your business processes with smart tools, accelerate your organization’s operations, such as marketing, service, and sales activities, create a wow factor for your customers, and win their trust for a lifetime.
The solution lies in making use of the Customer Relationship Management (CRM) System. No matter you’re a large enterprise, medium or small, CRM software adds viability to your firm, scales your business, and helps you tackle the matters related to your customers.
What is CRM?
Customer Relationship Management (CRM) is a technology to manage an organization’s business and interactions with its customers. The system connects the company with its customers. It helps to organize and interpret data of the customer, as a result allowing the company to keep a smooth business relationship with its customers.
The way how a business manages its customers is directly proportional to its success. When the business adopts the CRM system, it is finding a way to build customer loyalty through quality and consistent relationship management.
Now coming back to why do businesses need CRM, so let’s deep-dive into the top 5 reasons:
Why need a CRM system?
1. CRM improves customer retention
CRM functions as a great tool to keep your existing customers happy. Most importantly, you don’t neglect any of your past, existing, or potential customers. The CRM system keeps you updated about when to schedule appointments with them, gives reminders for follow-up emails, conducts email marketing campaigns effectively, for instance, you can send free promotional offers to your customers, or post-purchase customer survey forms — all just when required!
2. CRM simplifies sales and marketing processes
CRM provides a central customer database to store information about your customers, their contact information and makes it accessible when needed. It assists in identifying sales opportunities through lead nurturing strategies. It allows orchestrating marketing campaigns, optimization of cross-channel engagement, and enhances individualized customer experience.
Without CRM, sales administration becomes time-consuming. Many sales opportunities can be lost because of the lack of a proper system to regulate the follow-up emails/calls and lead nurturing messages. The market budget may not be handled effectively resulting in insufficient and unsatisfactory leads. Failure to have a single environment further makes it hard to view and understand customer relationships and maintain history on the interactions which are beneficial to explore new sales opportunities.
3. CRM provides better knowledge of customers
CRM is a dynamic communication tool — an application where your entire customer’s contact and order history are fed and stored. CRM system offers a competitive advantage to your customer support, sales, and marketing departments. They have a detailed insight of the customers, to name a few personal information like their name, postal address, social media accounts, and other many nitty-gritty details, which makes it easy to comprehend their specific requirements, customers’ trends and behaviors, run specific marketing campaigns and closely recognize the customers that can add profit to you and which ones can’t. Once you know your customers better, you’re already a step ahead to build the best customer experience.
4. CRM speeds up the communication
CRM technology is known to be the fastest-growing enterprise software category, enclosing the broader software-as-a-service (SaaS) market. As the system allows saving all customer activities, email threads, live chats, order history, customer service requests — the response time is fast and smooth. CRM system automates the communication by keeping track and streamlining the processes to narrow down the gap with your clients. You can easily send personalized service messages, timely updates, resolve issues, answer FAQs, and follow up from where you left without wasting time asking the same customer for information over and over again.
5. CRM allows predicting purchasing and production scheduling
To forecast the demand patterns, it is best to integrate CRM into your sales and operations planning (S&OP) process. Doing this allows you to analyze the historical patterns that influence the decision-making process for both the present and future. The customer data and insights are crucial elements to be utilized by the operations to understand the customer’s purchasing characteristics.
Benefits of building your CRM with Psmorfia
- Customize intelligent software solutions that help the business to automate their routine operations.
- Devise CRM systems that support complex workflows.
- Facilitate productivity for your customer services, sales, and marketing teams to achieve the desired business results efficiently.
- Ease inter-department communication.
- Monitor your organization’s performance and measure your success.
- Build customized products, specific to your need, with experts at Psmorfia.
Therefore, contact us if you are looking for any help. We would love to help you in the process and make your business a success with the right tools and a customized CRM system.
Reach us to get more information and help you make your project a success.
