You’ve heard the acronym before.
And you know that “C” stands for Customer.
But, what is CRM?
CRM is an acronym for Customer Relationship Management. It’s a business software that helps organizations to maximize their interaction with current and potential customers. But there is more to a CRM, than what catches the eye.
You know how in the Wizard of Oz, everything’s in black and white until Dorothy arrives in the magical world of Oz? Well, it was the same with marketing until CRMs “barged in.”
Today, CRM technology is the foundation platform for any company looking to better manage interactions with customers and prospects. It’s a company-wide strategy that aims to bolster revenue and profits, reduce costs, and increase customer loyalty.
So if you’re not on the CRM bus, you’re losing a lot to the competition. Here are a few lessons that businesses can learn about marketing from CRMs?
1. Lead Management Is the Key to Conversions
Lead generation is the starting process of the sales cycle. And when it comes to lead management nothing does it better than a CRM software.
Lead management involves 3 steps:
- Identifying a lead
- Qualifying the lead
- Converting the lead into a sale
While this may sound simple, it’s really hard to put in practice, unless you have a robust CRM system in place.
A CRM system will help you track how prospects found your business. For example, if you’re in the real estate business, the Follow Up Boss post on how to find a good real estate CRM will help you figure out whether a lead came from social advertising, organic search, or from premium agent programs such as Zillow.
The next step involves qualifying the lead.
A CRM system will help you determine which person or department is responsible for logging in that lead. This helps to determine how the lead will be routed and the necessary follow up activities. Without such a clearly defined process, leads can easily end up lost or forgotten.
Once the leads are in the system, it becomes easier to track their progress as well as tell whether a lead is ready to convert.
2. Relationship Building Begins with Knowing Your Customers
A recent Motista study found that customers with an emotional relationship with a brand will recommend the company at a rate of 71%, rather than the average rate of 45%?
Relationship building is the key that ushers your business into a new world of success. But how do you develop deep relationships with your customers?
The first step is to understand your customers more. In short, know who your customers are. What are their needs and challenges? What are their goals and preferences? Where do they hang out? Why do they consider your business reliable? This is where CRM software comes in.
A CRM system will help to know your customers beyond the surface interactions. It allows you to record every detail of your customers into the system, including details of their businesses, goals, struggles, etc. Better still, it integrates with social media, thus giving you even deeper insights about your customers.
After you understand your customers, you can recommend certain products or promotions relevant to their business interest.
3. Customer Satisfaction is Critical to Business Success
In a 2015 Capterra survey, 47% of the respondents said their CRM significantly improved both customer satisfaction and retention.
CRM systems adopt a strategy that says that a customer is at the center of everything you do.
In other words, CRM systems follow a customer-centric approach that recognizes the customer as the boss. When you have access to all your customers’ transaction history, needs, interests, and struggles, you’re able to provide them with personalized messages and solutions.
When customers are satisfied with your business as well as how you treat them, they become your brand advocates. This not only leads to more referrals but also increased brand awareness which translates to more sales.
Are you using a CRM for your business? If so, what are your experiences? Share with us in the comments section below.
If you want to learn more about our blog, please click here.