(1 votes, average: 4 out of 5)
Loading ...By Sharla Sikes
You don’t need me to tell you times are a bit tough right now. Buyer confidence is low, and that means that keeping the customers you have is even more important—let alone attracting new customers.
Can a customer relationship management system be the way to do this?
A white paper published by VendorGuru.com claims it is.
While everyone’s avoiding the R-word (recession), most businesses as well as consumers are tightening the purse strings. Customers are suddenly more valuable than just a short time ago.
CRM systems can help a company of any size ensure these customers keep returning—and it’s common knowledge that existing customers are cheaper to retain and more likely to buy than new customers.
“Businesses could find an effective CRM approach will give them an important competitive advantage under recessionary conditions,” states the white paper.
With an effective CRM system in place, businesses may retain profitability and grow even during a recession. Some view recessions as a bit of “natural selection” in the business world, allowing the fittest to survive and paring away those without the strength to weather tough times.
The white paper highlights three strategies for surviving—possibly prospering—during a recession.
Increasing customer penetration is the first. Customer relationship management tools can work to boost profitability as much as 70 percent, according to the white paper. Acquisition costs for new business tops the cost of servicing current customers; there are also opportunities for cross selling. CRM software guides your sales force by offering scripts for cross selling and showing the customers’ order histories.
Achieving efficiencies is second in line; streamlining a business from within is key during lean economic times, and unproductive salespeople can be identified and helped. In fact, CRM can help a company automate processes and develop greater efficiency throughout the entire sales cycle.
Finally, the white paper says CRM can help to use resources effectively. During slower times, keep your staff busy by trying new CRM strategies and solutions.
I believe that an economic slow down is the perfect time for business owners to look perfect their business by organizing (or streamline as you said), researching, and effectively marketing. This forces business to do better work or rethink their strategies, a task that is usually prioritized way too low.
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