Why CRM?

By Sharla Sikes

If you are a business owner or executive—regardless of the size of the company—customer relationship management systems are a good bet to help you maximize your sales.

CRM systems become even more valuable in today’s uncertain economy. Your customers are the reason your business exists, yet many companies forget to place the proper emphasis on building a relationship with their most valuable resource.

That’s where CRM software systems come

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in. Fostering a positive relationship with your customers is easier when businesses have a way to track communications, sales, promotions and other forms of contact with each client.

Knowing each customer’s purchase and payment history can be valuable. Use it to boost your company’s customer service level. Making customers feel like they matter—no matter how much they spend at your business—will keep them coming back, and it’s often said that keeping current customers returning is far more lucrative with fewer marketing dollars required than attracting new customers. The Pareto Principle, or 80-20 rules, says that 20 percent of your customers bring 80 percent of your revenue.

Yet providing above-average customer service will do both. No matter what industry you are in, word of mouth travels faster and farther than the best ad campaign. Your happy customers will refer their friends, family, neighbors, business associates, hairdresser, postman, dentist …

CRM systems allow you to provide this heightened customer service by having knowledge about

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buyers near at hand and easily accessible for you to use to cater to their requirements and preferences. Throwing your best clients some extra-great deals is one way to keep them coming back, but remember how that will affect your bottom line in the long run.

However, there’s more to it than just having a CRM system in place. Learning to use it as effectively as possible is the other half of the equation. We’ll talk more about that later this week!

5 thoughts on “Why CRM?”

  1. It’s important to remember that the software is only a tool, it is not synonymous with CRM. When you say “CRM” think “philosophy” or “business strategy.” When you say “CRM software” you are only talking about the software itself.

    The most important part of successful CRM implementation is getting the humans in your business to engage in CRM as a philosophy and to use the software as a tool.

  2. I like how you mentioned CRM will “become even more valuable in today’s uncertain economy.” I totally agree. I ran across an interview that talked about just that. The president of Mindshare (a customer service company) talks with Fox about just what you are stressing in this article.

  3. CRM is a strategy, better CRM implementation are part of a business strategy to enhance customer experience, customer loyalty and customer retention, increase employee productivity, and streamline business processes, increase sales and profits.

  4. I have looked your post. It is very informative and effective one.
    I have gone through your blog, it’s good information. i would like to subscibe you blog and expecting you more informative blog on daily basis. I am also study on CRM and found lot of good informative website which is one of you and another company like shawaman software.
    Shawman Software launch Shawman CRM for batter relationship between there customer. ShawMan CRM comes with some of the great features and add-on applications, which includes loyalty engine to manage point or point less loyalty, Campaign manager, Customer Service.

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