Firstly, what’s a CRM? CRM stands for customer relationship management. A CRM is software that provides you with the means and tools to manage customer relationships from the first point of contact, through to sale and on to post-sale.
The CRM software houses all of your customer’s data, from personal information to products purchased. Using a CRM gives your company deeper insights into your customer base. You can segment customers based on interests, purchases, sex, location, age and more. Beyond this capability, there are five strong reasons why companies benefit from using a CRM.
Elevated Customer Experience: With all of the data a CRM system holds, companies can leverage that information to create personalized customer experiences. Customer interests, past purchases, logged conversations and more are all available to sales and marketing teams to utilize to attract new customers, convince prospective customers to buy and entice past customers to buy again. Marketing and sales have taken a giant leap towards hyper-personalization and hyper-targeting to make the potential customer the center point of all conversations. With a CRM, companies have the capabilities to do this and draw in customers through what feels to them like one on one conversations.
Higher Retention: After a prospect becomes a client or a customer, they expect that the company knows them, even if the transaction never involved a sales rep and was conducted entirely through digital means. Traditionally this concept was inherent to business operations. Seeing a tailor, plumber, electrician, shopkeeper, lawyer, accountant, etc., were all individual, face-to-face transactions, after which the customer expected to be remembered should they return for services again. Businesses that knew customers by name and remembered their needs flourished. As our world has moved to a digital shopping experience, technology developed to recreate that same personal relationship without the human-to-human contact. We’ve reached an age now where the technology is so advanced that businesses that neglect this need for customer-to-business relationships fail to meet the customer’s expectations, ultimately resulting in retention loss. With a CRM system, your company has a place to house all of the digital information customers share and a way to utilize this data to establish a digitally, personal business relationship.
On top of this, CRMs offer in-depth reporting on customer trends. Using the data stored within the system, businesses can predict purchase behaviors and customer interest to serve them with messages that will keep them interested in the products or services, thus encouraging them to purchase again and again.