Do You Need a CRM System?
As a business owner, you understand the importance of customer relationships and you know that you need a way of managing those relationships. Customer Relationship Management, or CRM, is a term that refers to the tools/systems that are used to track interactions between a business and its customers. It allows a business to see the big picture of customer experience. Therefore, they can make informed decisions to improve that experience and increase sales.
In this blog, we’re going to explain more about CRM and how it works- and help you decide if your business needs a CRM system.
Customer Relationship Management Defined
CRM, is the systems/processes a business puts into place to measure and improve how they interact with and influence their customers. The goal is to gather information about customers and then use it to increase positive interactions with the company. Which ultimately increases sales.
The systems/processes included in CRM for small businesses are as follows:
• Lead generation/conversion
• Building relationships
• Customer service
A CRM system is collaborative. It is used to gather information about the customers through each phase of the relationship. For example, marketing, sales, and service. When a business owner can get a big picture view of the customer experience via CRM, they are able to make decisions to improve customer experience and increase sales.
How Does CRM Work?
CRM systems/tools include both desktop and browser-based software/cloud apps that collect and organize customer information. Many times, accounting software packages include CRM modules or will integrate with a third-party CRM add-on. These systems gather information about customers and their interactions with your business. This information can then be used to:
• Improve overall customer service
• Lead customers through the buying journey
• Improve product development
• Make advertising/marketing more personal
• Recruit new customers
• Increase overall sales
The goal of a CRM system is to effectively collect information about customers. You should have data capture points at every interaction with current or potential customers.
Types of CRM Data
Depending on how/when your business interacts with customers, there are several points where information can be collected. The information you need will also depend on the information that is relevant to your business. Below, we’ll list the types of CRM data you may collect:
• Contact info (address, phone #, email address, web address, social media, etc)
• How they prefer to be contacted
• How they found your business
You will gather this information over time as you build relationships with your customers and includes:
Family info (birthdays, anniversaries, other important milestones)
Group associations (for potential lead generation)
This information is necessary for analytics. You can use sales history to tailor the products you offer to suit your customers preferences. Responses to ad campaigns/promos can be used to adjust your marketing strategies. When late payment issues come up, credit payment history can be helpful. Valuable info regarding sales history includes:
• Products/services that were purchased, when, and how much was spent
• Method of payment
• If payment is credit, details of credit terms/history of payments
• Response to campaigns/promos/etc.
Communication with Customers
Ideally, your CRM should be linked with your email. Most systems do have this capability built in or you can link a third-party app to integrate with the popular email providers. By collecting customer communication data, you can reach out to customers the way they prefer, send out reminders to inspire additional sales, and more. You will want to collet the following:
• Preferred communication method
• Likely response to various communication
• Actual response to calls, emails, promos, etc.
Finally, you can track customer feedback:
• Complaints, returns, details of support calls
• How issues are resolved
• Customer survey responses
• Online/social media ratings and reviews
• Lost customers- why and where did they go?
Do You Need a CRM System for Your Business?
The short answer is yes. By collecting customer information through CRM, you can build stronger relationships with your customers. This will increase sales, which increases revenue. No matter how big or how small, a CRM system is beneficial.
Of course, CRM doesn’t just improve customer interactions. It also can help you determine where your business excels and where you need improvement.
Through effective use of a CRM system, you can understand/improve your business and your relationships with your customers. Contact Masters Commercial Capital Group for more information on Customer Relationship Management.