There are many benefits of CRM, which stands for Customer Relationship Management. But the essential advantage is it helps us understand each of our customers’ needs and wants, inside-out.
To learn the power of owning the customer information for our business, let’s use a local mom and pop store as an analysis tool.
Low Tech – High Touch Beginnings
If you own a small, family-owned business in your area chances are you only have a few customers — say 20 — and a small amount of business volume as well.
Dealing with that customer scale is easy. No need to do it with a computer or even software. What you need is a good memory and organized notes to keep track of your customers. That’s all.
With the “tools” in hand, you always know who need what and when. Your customers are happy because you always give them what they want even before they ask. In no time they turn to loyal customers that highly value your personalized services and are not too price-sensitive as well.
Growing Customer Base Pains
When your customer base grows, you will need to hire external employees to handle the increasing business volume. And your business changes. The “personal element”, which previously became your competitive advantage, is out of your control and slowly loses its power.
When your customer counts are in hundreds or even thousands, you no longer remember personal data like name, birthday, and others. You start thinking that you need help to make the chaos under your control.
At this point, a CRM solution can come to your rescue.
Understanding the Benefits of CRM Systems
CRM software can reduce your headache in serving a vast number of customers with the same level of service as, if not better, than when you did it with 20 customers.
A CRM program is the answer to your short memory span when dealing with a large number of buyers. It can give you the information necessary to offer personalized services that make them come back to you for more business.
The centralized customer database makes it simple tasks like sending mailers, addressing envelopes, sending greetings, or any scheduled tasks becomes a lot easier.
There is customer relationship management software coming in with features that make routine tasks like returning phone calls an easy task.
As you may already aware of, the cost of making a sale to an existing customer is only a fraction of the cost of making the same sale to a new customer. For that reason, you want every customer to become a return customer.
What you are building for your business is not a customer base but more like a fan base. Your customers, or raving fans, must love you for the service you offer them.
Happy customers give you not only businesses but also the best form of advertising — word of mouth. They eventually become your salespeople as they go about praising you to everyone with a similar need.
CRM solutions answer the customer retention issues. The software lowers their disappearance rate. It also helps prevent you from doing something wrong or neglecting to do what is necessary that may cause them to disappear.
A good CRM application doesn’t just defend your customer base from the risk of competitors’ acquisition. With the right strategy, it can help you create a fan base, which implies a stronger relationship than a customer base.
Of course, we still want to get new clients because no matter how good we serve them some will eventually disappear for one reason or another. But the benefits of CRM tools have convinced us that we’re moving in the right direction.