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You may have spotted CRM mentioned on business websites. Other entrepreneurs may have even asked you if you have one.
Perhaps you nodded while asking yourself “What does CRM stand for?” It stands for customer relationship management.
It’s also big business. CRM revenue has boomed from $16 billion in 2011 to $120 billion in 2019.
Wondering what CRM is and why you should invest in it? Read on to learn all about CRM.
What Exactly Is Customer Relationship Management?
In the old days, you might have a big book of customer details. It would probably be full of invoices, which may be the only way you had their details at all.
Or you might have their information in lots of different places.
Your accounting department might have invoices. The sales team might have their orders. Marketing might have them on file to send catalogues or direct mail.
That’s every department having its own copy of the same customer’s details.
With CRM software, you can keep all of their information in one place. This lets you see at a glance what they’ve ordered, who they’ve spoken to, any issues they’ve had, and which email bulletins they prefer.
Every department accesses the same record. It provides a seamless experience for the customer.
Why Should You Manage Customer Relationships?
Thanks to the Pareto Principle, you’ll make 80% of your sales from 20% of your customers. Why waste money chasing after new leads when you can satisfy your current customers and keep making sales there?
The best way to do this is by managing the customer relationship.
On a simple level, this can be making sure the customer’s details are always up to date. You can keep track of their orders and any interactions with them.
Or make it more sophisticated by assigning customers to specific managers. These managers become their point of contact, reaching out to keep relationships ‘warm’.
This neatly brings us to CRM marketing, where CRM software really shines.
What Is CRM Marketing and Why Should I Do It?
Having so much information about your customers makes it much easier to identify prospects and leads within your own customer base.
These aren’t brand new people you need to go out and find. You already have their details. They’ve already given you permission to contact them.
These customers also already know who you are. They’ve likely spent money with you so it’s easier to persuade them to do so again.
Your marketing department can filter your customers to identify your cold leads. Maybe they haven’t ordered anything in over a year. Reach out to them with special offers of the items they bought most often.
Or pinpoint the customers who spend the most. Treat them like the VIPs they are and give them the gold-star service. It’s a great way to earn their loyalty – because you reward theirs.
Treat Customers Like People, Not Numbers
Some business practices can encourage you to look at customers like numbers. Email open rates, sales figures—they lose the human element.
Customer relationship management lets you bring the people back into your business. It’ll also help you serve them better, which ultimately keeps bringing them back to buy from you.
Looking to get more customers for your CRM software? Get in touch and find out how we can help boost your customers in 2020.