Customer relationship management software (commonly shortened to CRM software) has been around for a long time but recently there has been a huge surge in CRM popularity. What’s behind this trend? Many authors cite the rise of web based CRM software which is generally more affordable, easier to install and more suitable for small to medium sized companies.
Should you become a part of the CRM software trend? Will a CRM system get more new customers?
The short answer to this question is no. Installing CRM software will not instantly throw a few extra zeros in your bank account. But CRM software, if implemented properly, can have a positive impact on your bottom line in a number of ways.
For starters, CRM software won’t make leads magically appear out of nowhere but it can help you increase your conversion rate on existing leads. As well as storing key information on potential customers you CRM software gives you the ability to automate your sales funnel. Steps that you take to move prospects along the path from ‘vaguely interested’ to ‘paying customer’ such as email follow ups, posting order forms or send them an ebook can be totally automated. By allowing your system to take care of the admin, your sales team can focus on things like follow up calls, understanding the clients individual needs and building strong rapport to close more sales.
When it comes to marketing activities CRM software can help you make more tactical decisions and ultimately achieve better returns. Most CRM systems can track the source of new customers and collate that information into charts (which are often very revealing). Using these features correctly means that you should be able to pinpoint exactly where about 95% of your new customers heard about you. You can then run reports to see which marketing activities are performing well and which methods are running at a loss. You might learn that the cheap ad you run in the tiny local paper brings in at least 20-30 new customers each month, while that radio spot you purchased for a small fortune has returned less than 10 new clients. there, axe the under performers and realize greater profits.
As an added benefit, when you implement a CRM software package you can expect to see an overall improvement in company efficiency within 6-12 months. It will also depend greatly upon the particular CRM provider you choose. Systems will vary in areas such as ease of use, speed and training required. Other CRM software programs will specialize in certain industries or business types. In any case, by the time the system is properly installed and your staff have sufficient training to use it with confidence you will begin to notice than many of the administrative problems that plagued your business before will begin to disappear. Important customers will receive regular service without anybody falling through the cracks. Any complaints will be able to be resolved quickly and efficiently as your CRM software will keep a complete log of correspondence and past transactions made by each client. Some systems even include full accounting capabilities which makes your life so much easier when tax time rolls around.
While CRM software can’t make new customers magically appear, it can help convert more leads into customers, show you how to spend your marketing dollars more wisely and reduce admin expenses company wide.
