All the moves a company makes towards establishing an interactive and pleasant relationship with its known and prospective customers can be referred to as CRM meaning (Customer Relationship Management). It can also be defined as the systems a company put in place to manage relationships and interactions with current and future clients.
The average worth of a loyal customer is over ten times his first purchase. However, it’s downright impossible for humans to keep track of thousands of customers and still maintain efficiency. Even if an organization had such a workforce, CRM still saves precious time. It’s become a necessary investment for most organizations, big or small, because of the sheer benefit it brings. But how do companies actually use CRM? What are its specific purposes?
How do we use Customer Relationship Management (CRM)?
- Streamlined data: CRM serves as a database for all your customers’ information. A functional CRM collects details on customer and company interaction in real-time and stores the data for later use. It makes for easy access to information, and an organized company is an efficient company.
- Faster response to complaints: Using social CRM enables you to react faster to customer complaints. By interacting with customers on social media, a business can answer queries, rectify problems, gain or maintain customer satisfaction, and build up a good image.
- Leads: The sales team is generally in charge of producing leads, that is, finding prospective clients. A CRM could be invaluable to them by tracking the leads and information entered into the database, tracking customer interaction on that lead, and analyzing such data to create a more straightforward process.
- Automate tasks: There are more than a few processes in an organization that, while entirely mundane, are necessary for the growth and efficiency of the business. Some of these tasks include analyzing customer data to help design targeted marketing campaigns, automating repetitive processes to save time, handling simple customer requests, optimizing processes, etc. This gives your employees more time to focus on more creative or demanding work.
- Employee details: You can also use your CRM system to reduce the workload of your human resources department. Your CRM can track workers’ information, such as contact information, complaints, performance, vacation days, company benefits, etc. Any changes in these details can be quickly recorded, which takes a massive load off HR.
Departments that require CRM
To do business efficiently in today’s market, all organizations require a CRM, but some departments need it even more than others.
- The Sales Department
The sales team is in charge of generating and cultivating leads; selling the product generally. A CRM takes unnecessary load off their shoulders by helping them find valuable opportunities with segmented data and optimizing their schedules to make sure customers are attended to.
By keeping track of customer data, they also help sales representatives remember when specific customers need to be contacted. This same data allows salespeople to analyze customers’ wants and even anticipate them. CRM cuts down on administrative tasks for salespeople. This leaves them with more time to focus on converting prospective customers.
- The Marketing Department
A good marketer knows that there’s no detail too small to collect about the customer. CRM provides an organized and centralized information system in which to store that data until it’s needed. This organized and segmented data can be used to personalize messages to customers and to create more targeted market strategies or advertisements. CRM also allows you to market products to customers based on their purchase history for a higher chance of sales. The integration of CRM across all platforms makes everything that much easier to store and track.
- The Customer Service Department
Full access to customer details and interaction data can make all the difference when resolving an issue for a customer. This data tells the customer service representative how to respond to such a customer to provide excellent service. Providing a personal touch to your answers might be a way to settle unhappy customers and enhance their experience. CRM allows you to send canned emails with a personal touch, such as the person’s name. A purchase or an event can trigger these emails, to create more of a rapport with the individual.
- The HR Department
The Human Resources department can use the CRM system to manage employee relationships effectively. By storing employee data and streamlining it, the HR representatives can quickly resolve problems brought forward by employees. It also helps to generate automated emails for any event, training, or meeting.
A CRM is fast becoming an absolute necessity of 21st Century business. Studies have shown that ROI on CRMs is 8$ to 1$ invested. But while testing our CRMs, make sure to find one that will take care of your clients’ data while not breaking the bank, especially for smaller businesses.