What is CRM Part 1

What Is CRM.

PART 1

Areas covered:

  1. What is CRM
  2. How does it work
  3. Why have CRM
  4. What can be gained from CRM
  5. Benefits

WHAT IS CRM

Many people ask what is CRM, should they have a CRM system/solution installed, what are the benefits to their company. We will try to address some of the common issues that arise when considering CRM, over a number of articles starting with this one.

CRM stands for Customer Relationship Management but it really doesn't tell you anything else. When thinking about CRM firstly consider how your business would run if you didn't have customers, and it doesn't matter if your customers/clients are business to business or business to consumer. The important aspect is that without customers you are unlikely to have a business. Any company, whether large or small should be trying to keep, nurture and improve any current relationships they have and to enhance and extend your business to new customers. CRM solutions put the customer at the heart of the business process.

The objective of any Customer Relationship Management system (CRM ) is to help you manage your customers more effectively and efficiently, so that you develop a greater understanding of their needs and behaviours, which gives you a better prospect of keeping current and future customers, and an ability to anticipate their needs.

Customers are your primary asset, a CRM system can assist you in working more effectively and efficiently with them.

HOW DOES IT WORK

A CRM system is an application, that allows you to have all the information about your customers in a place. No longer do you need to contact a range of different people/offices in your company to gather information about customers, saving time and resources. But CRM is much more, if you use this information creatively you are likely to anticipate customer’s needs, promote further sales and any company that has a successful relationships with customers is likely to increase it’s own success.

CRM is a technological tool that holds information in one place . How you use this information is the method that will enhance customer satisfaction and increase your success.

WHY HAVE CRM

Finding customers is a costly process and retaining those you have is time consuming. In today's market place a high level of interaction with customers is of paramount importance, as if you ignore them, customers will find another company who will be more than happy to do business with them. Considerable business is gained and lost through word of mouth, and neglected customers are exceedingly noisy and vocal about how they feel.

Using a CRM system efficiently will improve the level and type of contact you have with customers. You then have a greater chance of having happy and valued customers. Satisfied customers are as vocal as the dissatisfied ones, but happy customers will encourage others to do business with you.

Always remember that a CRM gathers the information about your customers , but you then make decisions about how to use this information.

CRM supports you in maintaining focused contact with customers, which will keep them happy and make them feel valued. Neglecting them could cost you your business.

WHAT CAN BE GAINED FROM CRM

CRM is not just about enhancing your customer engagement, it's also about expanding the productivity of your company and increasing your market share. The basis for all operation strategies should be' know your company, know your customers'. CRM can assist you in this by using the information you gain on a daily basis about your customers and your company:

  • All the information is in one place
  • Marketing Styles: what do you promote, how do you promote, why do you promote, when do you promote
  • Customer Styles: how they buy, what they buy, when they buy (products/services)
  • Communication Styles: how do you make contact, why do you contact, when do you contact

CRM can give an in-depth knowledge of your operating strategies and customers behaviour. You can then adjust you working practises to reflect current and projected needs.

BENEFITS

Many companies don't analyse in enough detail what they are doing and miss great opportunities to increase their productivity and profit. Companies that succeed on a yearly basis continually consider what they could do better, even when their accountants assure them they are doing well.

CRM gives you the information to consider all angles of your business and has been shown to have many benefits for those who use it, for example:

Your Company:

  • Comprehensive understanding of customer behaviours and therefore pre-empting customer requirements
  • Wider ability to anticipate future needs
  • Enhance targeted marketing strategies to specific customers or for specific products
  • Increase sales through understanding the trends
  • Timely communication with customers to increases customer satisfaction and sense of value
  • Increased efficiency through strategic planning and effective marketing
  • Enhanced reputation through improved service
  • Identifying profitable and unprofitable customers
  • Recognising productive and non-productive areas of your company
  • Optimise your assets - whether they be customers, staff or working practise

Customers:

  • Better relationship through focused contact
  • Increase of sales through anticipating current and future needs
  • Identifying other products they could be interested in
  • Feeling valued through well-timed and appropriate communication

Future customers:

  • Increase customer base through trend analysis
  • Focused marketing to those who are likely to require your products or services
  • Current customers information may enable you to identify new prospects

CRM benefits both your company and customers. It gives you the information to make informed choices about how you operate. Thereby enhancing what gives you value and reduce/discontinue what decreases you profit.

We hope you found this information useful as a basic introduction to CRM. The next article will cover 'How to Deploy', considering what types of CRM are available and what may be most suited for your company.

If you would like further information on this then please do not hesitate to contact us, we would be very happy to help.