A lot of marketing, research and effort goes into converting potential customers into subscribers of your brand. Successful businesses know that the key to keeping the lights on in any business is to retain a loyal customer base. So just as much effort, if not more, needs to go into keeping those customers happy and persuaded to stick with you in the long-term. It is estimated that the cost of converting a new customer is approximately six to twenty times as much it is to retain an existing customer. Therefore, it also makes financial sense to focus on customer satisfaction and reduce customer churn. Good Customer Relationship Management (CRM) software helps you do just this.

Once your company reaches a certain size, depending on a small team to manually track the daily operations and requirements of existing customers is both time consuming and prone to error. At its most basic level, a CRM system acts as a database of your customers. But it can also be configured to send out reminders, help you stay in touch with customers at routine intervals, track complaints, requests and other interactions. It acts as a highly efficient organisational system that not only keeps your customers content but can also streamline your daily operations.

CRM applications have specific functions and it’s up to you to use them as creatively as you can to maximise their efficiency. CRM software can be an excellent way to automate several daily tasks that would otherwise take up valuable time from your team.

1. A CRM records interactions that customers have with your company:

Don’t depend on memory, or spend extra time writing up a report. CRM software is able to record customer details including their contact information, complaints, feedback, email/messaging and so on. This history gives you a good idea of the customer’s relationship with your company. You can also set reminders to make sure you touch base with them at regular intervals and none of your customers are neglected.

2. A CRM helps you personalise offers for customers

CRM systems can contribute to creating more specific, meaningful marketing campaigns. When you look at a customer’s purchase history, it can give you a starting point to form a picture of their buying behaviour and needs. Based on this, you can offer them more personalised subscriptions or offers that are likely to appeal to them.

Similarly, you can create different offers for customers who are dropping off or those whose activity has stagnated. This sort of information also provides cross-sales opportunities. Additionally, CRM software can help you track the response to your last bulk email advertising campaign and help you target specific categories.

3. Automate and streamline daily operations to increase efficiency

In terms of your daily operations, you can set up the software to take care of simple, repetitive tasks on its own. Whether it’s asking for feedback or sending reminders to customers. This should save your team plenty of time to focus on other tasks.

Businesses often use CRMs to issue quote reminders so you can give it your attention before it’s due. It can also be used to track potential leads and actions that have been undertaken to pursue them. Tracking a process ensures that due diligence has been followed by your team and you can also assess what could be done to increase your success rate.

4. A great CRM will track the performance of your team

CRM software can also be used to track the performance of your sales team. This way you can figure out their strengths and identify those areas that require additional training. When your daily operations are laid out objectively in a report, it could even give you great insight into adding certain roles or cutting down on redundant actions.

5. Gain insights into business operations and customer behaviour

A CRM system records a large amount of data that can give you a lot of insight into your own operations as well as customer behaviour. Don’t let this data sit idle. Besides making sure that updates happen regularly, run reports that help you identify patterns. For instance, pipeline reports can tell you which leads look promising so you can focus your energy on them. Issue reports can tell you which complaints are open and who has been assigned to them. You can ascertain which your most common problems are and how quickly your team rectifies them. This way you can identify the weak spots and fortify strengths. These reports can be generated automatically so you routinely receive the information you need to improve the overall functioning of your company.

How do you choose the right CRM application for your business?

Besides looking at the features that the software offers, pricing is an important factor to consider. The advantage offered by the software should be greater than the amount you spend on it in order for this move to make financial sense. Making a few calculations on your accounting software can forecast the revenue you stand to gain with CRM. Once you have a budget that works for you, you can shop around for good quality CRM software.

Remember to take into account the specific needs of your business and daily operations, what works well for another company may not necessarily fit with yours. There are few things to keep in mind while considering CRM applications.

Think about scalability

Look ahead. Even though you have a small team now, the goal is growth. Invest in software that can grow with your company. Will you be charged to add new users and does this cost work for your budget? If the software cannot be scaled up then, would it be possible to export the data easily and put into a new application at a later stage?

Does the provider offer sufficient support?

This will be key to iron out any teething problems as you attempt to apply the software to your business. You can read reviews in the software provider’s forums and there may be some negative reviews but assess how the company handled these issues. Are they committed to fixing errors and helping their customers achieve results?

Does it offer cloud connectivity?

Applications with cloud connectivity offer nearly instant updates and this tends to move things along much quicker. Members of your team can look up meeting statuses, calls or information while on the go, making everyday life much more efficient. Opting for in-built cloud connectivity offers a big positive impact.

Flexibility and integrability

A CRM software’s effectiveness in your business increases multi-fold if it can be integrated in with other applications. For example, if it can be combined with accounting applications, you’ll be able to see the financial transactions that you’ve had with each of your customers. This offers further benefits in terms of understanding which categories or sales offer the most profitability.

Being able to integrate systems together saves you the trouble of having to duplicate, shift or enter data twice. When used in conjunction with the cloud, it takes efficiency to the next level. Make sure you check the lists of partners connected to the software so you have reliable support for integration and cloud management.

CRM systems have been around for several years and even a simple one can make a big difference. To make it work for your business, you need to take the time to understand the workings of your company and of the software so you can find the perfect fit.