Many business people rave about how the CRM software has increased their revenues and monetary gains. But this is not just because the software helps increase sales but it also helps in reducing expenditure. It’s easy to see how productivity can be increased. There is real time feedback from the customers, response to emails are quicker with the integrated email app, leads are organized and tracked effectively to increase conversion, social media is better implemented to connect with as many customers as possible and there are no longer missed tasks as the dashboard lists all things that have to be done. All these actions lead to better productivity thus better sales. Customers are taken care of greatly with this software and it has helped many small scale businesses vastly. We’ve seen how CRM can possibly increase productivity and sales but how does it actually help your business reduce costs and expenses?
Lower Costs of Production
When you are into the retail business, you mostly have more than one product. You can have a variety of things, from pens and papers to cabbages and other produce. With the use of customer relationship management tools, you will be able to immediately know which of your products are selling the most. And the software will automatically put a reorder for products that are running low. You can program your software to stop reordering goods that are not popular and are not selling. This will help you save money on stuff that are hard to sell, giving you more budget for products that are actually selling.
Another way the CRM can help lower costs is its ability to show information about any organization that you are doing business with. An example with be two companies are competing to give you their products. With the software, you will be able to know immediately who can give you cheaper but more quality products. This will save you a lot of money and time. You will not have to correspond with them and have them demonstrate their products, although this might still be a good idea just to validate how good their products are. But the point is, you are saving much more because you already have the knowledge that before you wouldn’t have without the help of CRM.
Reduce Costs for Acquisitions of New Customers
Customer acquisition is the gaining of new customers. But to gain customers, you have to put a lot of time and effort into it. You would have to woo them, send them emails, newsletters and reminders, cold calling possible new leads, spend money on travels, meals and marketing campaigns that might not even work, and many other business expenditures. With the help of CRM tools this bevy of expenses can be scrapped. If your CRM is implemented properly, customer satisfaction will soar. You will get new leads that you can nurture to get higher conversion rates. Word of mouth will be your major endorsement and marketing campaigns can be made more targeted with the help of the feedbacks you will get from customers.
Econsultancy reported in 2014 that there has been an increase in acquiring new customers by 3%, from 31% to 34%. But retention is down to 18% from 24% previously. Other than acquiring new customers, CRM is also great at retaining old customers. Having long term customers will also mean long term revenues. So instead of focusing solely on getting new customers, you should also work hard to keep the old ones.
Reorganize the Sales Process
The best customer relationship management tools will help your company reorganize the sales process to lower more costs but still increasing productivity. Before, you would need your sales staff to keep track of leads, call them to schedule appointments to pitch your products and manage orders themselves. Because everything is being done manually, sometimes it can’t be helped that other tasks will be overlooked and other things not done. With the help of CRM solution, this problem can be solved. CRM will help your staff take note of leads and book appointments easily. The software will also send reminders for schedules. There is a dashboard where all unfinished tasks are shown, arranged by priority so nothing will be missed. With everything done, you are sure that productivity is high and there are no possible losses of income. Transactions can be done faster allowing your sales staff to gain more new customers while taking care of old clients.
Not every CRM will work with your sales process, so be sure to select one that will work perfectly with your company. Read CRM software reviews to have an idea what it can do before buying it. You should also have a clear idea of what your sales process it so you know what you will have to get. Using CRM will streamline your sales process to reduce costs and increase sales.
No More Duplicate of Customer Records
Small businesses lose customers because of staying silent, according to an article from inc.com. You can be easily forgotten if you don’t keep yourself relevant to your customers. There are many companies that will gladly take your place if you don’t do your job. But just the same, you can also lose customers if you smother them with reminders. What clients do not like, is if they receive multiple calls from the same company pitching the same products. This is likely to happen if you have duplicate records of customers in your database. Using a CRM database software will ensure that this doesn’t happen. There is complete transparency in the CRM system that every employee will know who has been called already and who has not. This will help your staff keep track of who needs calling, or who needs to book an appointment and who is ready to close a deal. This will save time for your staff and make them efficient in their jobs. There will be no risk of alienating any more of your customers if you maintain only one record for each of your customers.
Less Travel Expenses
According to Harvard Business Review field sales representatives can bring 40% up to 90% more customers than inside sales representatives. But effective implementation of the best customer relationship management tools can change that. Imagine being an outside sales representative going from place to place to secure clients. That takes a lot of time and money for travel expenses and considerably less acquisition of new customers. With CRM, you can filter possible customers in one area and visit them at one time. This will save you and your employees a lot of money and effort in pursuing customers. You will also have more time for your customers meaning you might get more with this method. Sometimes, going to the field is not even a necessity anymore. Calling will most of the time do the trick, if you have great closers.
CRM will not actually remove the need to visit potential clients. But it has helped shorten travel time with the software’s ability for meticulous planning for the right routes to take. With less travel time, there would be less oil consumption with more clients visited at a given time. Miles are maximized and time is very well spent.
Better Customer Support
Top CRM tools were created to effectively manage customer relations. The software can improve efficiency of sales staff because they can know immediately if there are problems. All interactions are available for them to scrutinize to know where something could have gone wrong. Feedbacks from customers are also available in real time, so if there are negative things they find about your product or service, your customer support is available immediately to do damage control. The CRM enables sales agents to have trusting and lasting relationships with their clients. There are times that clients are more loyal to the people they interact with rather than the product itself. So having agents establish rapport with clients will help in retaining customers and possibly getting new ones from their endorsements. Not all software will have the same features and some you might need, others you might not. Read reviews of customer relationship management tools to know more about the software you plan to get.
For a business to succeed, you have to increase sales and reduce expenditures. But maintaining a lasting relationship with your customers is also key to a prosperous business. You can all do these with the help of customer relationship management tools. It is a software developed to help your business keep in touch with your clients. It helps with keeping tracks of leads, events and tasks to be done and a host of other things. It helps keep records digital so you also spend less on paper and printing. It has helped many business boosts their productivity and sales. This article aims to help business people know about how this particular software can help them grown their business.
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