Customer Relationship Software (CRM) may sound like a buzzword, but it is one of the most useful tools your business could have. CRM acts as a central hub; it organizes customer contact information as well as your sales processes so that everything is in one place. For some companies, the benefit of that type of organization is clear—single sources of truth are always more efficient—but CRM software is not a glorified Rolodex. It is a powerful tool your business can leverage to its advantage.
When you think about what makes a salesperson successful, what comes to mind? Is it the ability to establish a rapport with sales leads or the talent for crafting a masterful, personalized pitch? How about both? The fact is that sales success is no accident. There may be many roads that lead to conversion, but they all have a series of steps that happen in sequence. CRM software helps you harness that information so that you can repeat your successes with new leads.
Example: sending a coupon or special offer in the second email sent is more effective in attracting a repeat customer than one offered in the fifth email.
Having CRM can also help you track efforts across your company. Most Customer Relationship Management software records each time one of your customers or leads connects with your company. This can include sales emails that come from a particular salesperson or a targeted email blast. A good CRM can tell you whether a customer opened the email or ignored it and when. This information helps you see which messages are successful and which could use some extra finesse. Furthermore, looking at the frequency of sales contact, your team can see when to follow up.
Example: a CRM can highlight which customers have not interacted with your company in the past three months and prompt your sales team to take action.
Clarify the Sales Process
One of the ways Customer Relationship Management enables success is by clarifying the sales process or funnel. Here’s how it works generally. The CRM records every action your sales team makes. Then, it distills that information into usable insights. With enough data, you will be able to map your sales process into specific stages or identify paths to sales conversion. Your sales team can use that analysis to determine where individual customers or leads are within your sales funnel and determine the best way to connect with them to get a conversion.
Example: a CRM can help you see when to send a coupon or when to reach out and answer questions.
Improve Customer Satisfaction
Customer Relationship Management does improve sales and make your efforts more effective, but it does a lot more than that. It also helps you improve customer satisfaction. CRM makes sure that the messages you send your customers are relevant and well-timed. A good system is going to show you which customers like what type of offers and help you avoid annoying potential clientele. It can also alert you when a customer starts ignoring your emails or when a long-time buyer suddenly unsubscribes. Knowing about these events gives your team the chance to follow up and make things right, and a good retention strategy can mean serious bank. Increasing retention by as little as 5% can produce an increase in profitability of 25% or more.
Example: your CRM tells you when a customer with a lifetime value of over $500 unsubscribes. Your sales team reaches out to find that the person wasn’t happy with their last purchase. They issue a refund. Your customer re-subscribes and goes on to become a regular.
Using CRM Software in Your Business
If you aren’t using customer relationship management tools in your business, you are missing out on a major opportunity to figure out what works best for your customers and repeat those efforts at will. Using Infor CRM, for example, gives you the ability to store customer information in one place alongside your team’s efforts to connect with those people. You can see what works and figure out how to replicate those successes.