Why CRM is so important?

May 20, 2020

Ever heard the term “The customer is always right”? Well, it is a pretty common saying in the service industry. While it may not be factually true, this saying does hold a significant amount of weight. You see, customers are the lifeblood of any organisation. Without customers, making profits is nothing more than a daydream. This is why most businesses have a policy of putting a ‘customer’s needs first’. While it may not mean that they are fully prepared to jump off bridges for their customers, it does mean that they are very likely to invest in reward programs or thank you messages to long-time customers.

But, all the gifts in the world can never make up for common human errors like mixing a client’s contact information or taking too long to reply. Though it may seem like an overstatement, customers have always known to be fickle. While some may stay loyal to a single brand, a good majority of consumers are more likely to jump ship once they find a better deal or a company that can provide a better service. That is why, in this competitive modern business landscape, every tool at your disposable must be used to impress and maintain customers.

What is a CRM (Customer Relationship Management)?

Well, the name is already self-explanatory. It is a tool or application that manages all of your company’s relationships and interactions with both customers and potential clients through things like contact management, sales management, productivity, etc.

The system aims to help companies stay connected to customers, streamline processes and improve overall profitability. It also helps your business keep track of all relations including customers, service users, partners and suppliers. When used with data analytics, it can even aid you in finding new potential customers.

Gartner has predicted that by 2021, CRM will be single largest revenue area of spending in enterprise software, totalling at USD$26.3 billion in 2015! While industry giants investing in a product or system may not be a good reason for you to adopt it, it is a sign that you should look into it. Maybe, it might suit you.

That is exactly what Kelly Roofing, a small, second-generation family-owned company in Florida did. In 2015, the company adopted a cloud-based CRM solution that helped them in transforming their business operations and managing their customer’s information. This adopted change ended up helping to double their employee’s revenue as well as streamline their operations. Due to diversity and scalability of most CRM tools, it is able to aid not only large corporations but also SMEs (Small to Medium Enterprises).

Why Is It Important?

1.Demographic Data

A huge misconception about CRM tools is that they can only help in organisation of contacts. This may have been true years ago but, with the emergence of Big Data and new technological advancements, many have also been using CRM tools to collate and analyse their customer’s details.

Through this, many have gained actionable insights that helped in segmenting their target demographic so that companies are more aware of how to better market their product or service.

2.Organising

Of course, organisation is one of the most important parts of a CRM tool. After all, what is a CRM tool if you cannot immediately pull up a customer’s information within a few seconds? A good CRM tool will not only allow you to filter and create multiple views of the same set of data so that you can easily locate any file you need but it will also automate and streamline certain processes so that employees can skip out on the manual typing in and focus on bettering other more important work.

3.Streamlining Operations

Have you ever called a company only to have to be put on hold for 30 minutes while the customer service operator went to search for your file? Well, I doubt you were gleefully dancing to the beat of the waiting music while waiting. These days, ‘time is money’ and wasting a customer’s time will definitely cost you money.

CRM tools help business to optimise their customer interactions by enabling the service operator to pull up a customer’s file or details within just a few clicks. A good CRM tool would also allow users to automate certain more complex processes so that employees no longer have to waste time doing manual work.

A CRM tool is an important middleman between every company and their customers. With it, companies can focus on pushing out new and exciting products that customers will like without much worry about customer service or storing a customer’s information. So, start using VAL’s Free Plan now to try out a CRM tool made to better your company.

Sources:
Microsoft. (2017. 29 June.) Combining traditional know-how with modern insights: a firm’s journey to digital transformation
Salesforce. (2020.) What is CRM
Forbes. (2017. 24 October.) Why Is Customer Relationship Management So Important?



About VAL

VAL, also known as the Value Aggregation Layer, is an all-in-one data collaborative data operations solution that lets you operationalize your day-to-day work and discover actionable insights from your data.


About the author

Nicole is a freelance designer and writer that has written articles for different sectors.