Customer Relationship Management (CRM) software is designed to improve and manage customer relationships. To do this CRMs typically contain operational components that integrate and automate many process, as well as analytical components that gather sales, marketing, and customer data, and finally collaborative components that make it easier for employees within and between departments to work seamlessly together, thus improving customer satisfaction and employee productivity. This in turn allows companies to refine marketing strategies to produce the best results. Let’s take a closer look at how CRMs perform these important tasks.
How A CRM Can Improve Productivity
CRMs improve productivity by making it easier and faster to get the job done and to do so with fewer errors. Specifically CRMs improve productivity by
- Automating Tasks – Tasks like customer follow ups, emails, and market campaigns can all be automated, increasing productivity, lowering costs, and freeing up employees to work on other projects.
- Facilitating Collaboration – CRMs make it easy for employees in different departments to work together. For example many CRMs contain sophisticated, efficient communication tools and the ability to quickly and easily share data.
- Improve Planning – The data gathered by CRMs and the ease of tasks thanks to automation and collaboration in turn allow companies to plan more efficiently and to execute those plans with fewer hiccups.
- Global Updates and Better Data Management – CRMs make it easy to update and maintain information on customer accounts, keeping all key personnel up to date. Likewise, if a customer’s contact information changes, CRMs provide a way to update that data once without the need to update multiple databases.
How A CRM Can Enhance Customer Satisfaction
At their core, CRMs are designed to improve customer satisfaction while also creating new and higher sales opportunities and increasing customer retention. CRMs perform these important objectives by doing the following:
- Streamlining Customer Interactions – A common source of frustration for customers is the need to be transferred to multiple people and departments at a company and to have to explain their situation over and over each time. With CRMs data can be easily shared between different departments, reducing or eliminating this problem.
- Detail Account History – CRMs provide a quick and convenient way to view detailed account history and past orders. This ensure that customer re-orders are correct and reliable and that customer questions about past order can be addressed in a timely fashion.
- Targeted Offers – Based on the customer’s profile and past orders, companies can use CRMs to send customers targeted offers or news about products and releases that are most interesting and relevant to that customer. This ensures that customers get value from the offer, rather than just getting annoyed by junk mail.
- Customer Incentives – CRMs can also use the data and history they have on customers to create loyalty programs, offer incentives or rewards, or even specialized discounts. This will both increase sales while also providing a valuable service to customers that makes them feel more valued.
How A CRM Can Help Companies Refine Marketing Strategies
CRMs also help companies use their ad dollars more wisely by providing metrics and analytics that allow marketing strategies to be refined and optimized. For example CRMs do the following:
- Collects and compiles data about what’s working and what isn’t
- Allows for easier testing of different strategies
- Allows for more targeted marketing to customers
- Increases speed, ease, and comprehensiveness of reports
How A CRM Can Transform Businesses
The benefits of CRMs discussed above in terms of productivity, customer satisfaction, and better marketing strategies allow companies to transform their businesses into the best versions of themselves, making them more efficient, profitable, and respected by customers and competitors in the industry. The Refinery Source helps companies implement and integrate CRMs, ensuring that they get the most value from these powerful tools.
By Kevin Knight