The Benefits of CRM Software for Your Business

benefits of CRMThere 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.

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5 Ideas to Increase Sales Without Spending More Money

ideas to increase salesMost of us believe that implementing any ideas to increase sales will improve our bottom line.

Of course, profits are the reason we’re in the business. But we can only realize the returns when the amount earned can cover all the amount spent for doing our business.

To generate surplus we have 3 options: increase sales, cut costs and both. Let’s play around with the choices to see how we can get good, abnormal earnings.

If you’re selling goods and/or services naturally, you’ll want to increase your sales. However, those efforts don’t always result in profits. This is especially true if you aren’t careful enough in controlling your marketing expenses.

For that reason, you may want to learn ideas to increase sales without increasing marketing costs. Here are 5 ways to improve your bottom line:

1. Focus on previous buyers. First time buyers who have good experiences with you and your business are likely to buy from you again. Understand their needs and they will be easier to serve than others who have never done business with you.

2. Sell higher price products to existing customers. The next logical step for following-up your first sale is offering higher price solutions. Let’s say your entry-level product solves their basic needs. This time you want to help them improve the result they can get to the next level.

3. Set up an affiliate program. Once your products have been well-received by your target market, try to recruit external affiliate sales force — in house or via an affiliate network. If you create good marketing materials plus offer generous commissions, they will work for you day and night without costing you more money.

4. Get super affiliates to promote your stuff. Even a good affiliate program set up can be a hit and miss. There is no secret that less than 10% of members make the 90% of the sales. You want to set a deal with super affiliates who have proven experiences in selling huge amounts of the same or related products.

5. Offer a generous money back guarantee. Find the standard in your industry. If most competitors offer the 30-day money-back guarantee, beat them with a 60-day or even 90-day offer. Any generous offer will improve customer confidence in your product and your business so you will win their business over the competitions.

All the mentioned ideas to increase sales need no additional operational cost. The exception is the costs for setting up an affiliate program. With some creativity, you can find unique ideas to get more sales without spending additional marketing expenses.

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