CRM or Customer Relationship Management Software is one of the cornerstones of a successful sales and marketing strategy for businesses of any size. If you’re a decision-maker in a business, it’s likely you have heard the term thrown around, you’ve likely been cold called about it, and maybe – and you’re certainly not alone in this – you’re struggling to see what the deal is and where the return on investment (ROI) comes from.
CRM spend in 2019 hit £32 billion ($42BN USD), and is expected to hit £61Billion ($80BN USD) by 2025, and if those selling them are to be believed, they are an invaluable tool for helping you accelerate your sales and improve your customer service.
There’s real data to back up this claim. According to Nucleus Research, for every £1 spent on CRM, it returns £8.71, and this ROI is expected to trend upwards the more advanced CRMs become.
Why might you consider buying one?
1) You want to grow your business this year.
CRM is a valuable tool when looking to execute on a growth plan fuelled by Sales and Marketing.
A standard feature of most CRM software is the ability to profile your customers to see how much each customer spent with you last year, who increased or reduced their spend and who didn’t buy anything. This is invaluable information which allows you to accurately target your sales efforts and make the largest return on investment (ROI) from your Sales and Marketing spend.
Furthering examples of how CRM can help you determine your ROI against your marketing spend, consider this:
If you can generate 100 leads from a £100 Adword spend, which then generates £10,000 in the Opportunity pipeline, which closes £1,000 in sales. You can see you have a 10 X return on your investment, which can give you confidence a £200 Adword spend, would yield similar results and thus double your revenue.
In short, the insights and metrics a CRM can deliver are key drivers in growing a business.
2) Your Customer Service is failing to deliver
Customers have the power to make or break your business, and if you’re not servicing them effectively, you’ll find it an uphill struggle to grow your sales. It is far easier and cheaper to sell to an existing customer as any good business person knows, however, pushing that paradigm further, we can say that it is far easier and cheaper to sell to an existing customer when you have previously given them a good experience.
CRM helps you to manage your customer service more effectively with automated workflows to help you remember when to follow up and ensuring no one is forgotten.
Most CRM’s have some form of Case Management system, with some even being ISO9001 complaint out of the box. By logging all inbound Customer Service queries, feedback and complaints, with automated reminders to follow up, it is less likely a customer is going to fall through the cracks. Further, Customer Service Automation can help you to automatically respond to customers, and route cases to the relevant person in your business. A small investment in a CRM can yield large increases in your customer service levels.
3) You have no centralised repository for Customer Data
Most businesses start out managing their customers from within their email client or via a spreadsheet. It’s a cheap and reasonable way to get started, but once you grow past more than 2-3 people it becomes cumbersome to synchronise changes and limits your team’s visibility of customer interactions making it hard to make informed decisions quickly. Even if you use a tool like Google Docs which allows for real-time collaboration, it can be plagued with issues. Additionally, reporting from a spreadsheet and extracting any meaningful metrics can become almost impossible
Most, if not all, CRMs are now cloud-based, meaning they are always available with just an internet connection and most come with mobile versions you can access from your smartphone either in the browser or via a mobile app.
By centralising your data into one system which is always up-to-date you can more easily manage your customers, their data and produce meaningful reports on the activity within the CRM so as to drive sales success.
4) You want to automate and systemise your sales process
It’s very unlikely a business, even in its earliest days, can survive without automating their processes to some degree. CRM makes automating routine tasks easy, such as data entry, deal management and follow up emails, which can improve productivity and boost overall sales. Automation also prevents steps in your process being missed by inattentive or inexperienced employees, which can cost you sales.
5) You have key accounts you want to nurture
Most businesses have key accounts which account for a sizeable portion of their revenue, and you don’t want your biggest customers to feel unappreciated. CRMs can automatically remind you to check in every month or follow up on important events, allowing you to send timely communications. CRM can also help identify your key customers in the first place which can sometimes be missed.
CRM also tracks individuals within organisations, this also allows you to further personalise communication and also maintain your relationship with the account if your key contact there moves on.
There are many additional reasons why a business may want to move to a new CRM in 2020. We’d be more than happy to discuss them with you.