Customer relationship management (CRM) is a tool that helps to organize all company’s relationships with customers, suppliers, partners, service users. It improves business effectiveness, productivity, and profitability. CRM system can be used across the entire customer lifecycle, providing support and additional services. This tool is useful for every part of your business: sales, customer service, marketing, etc.
How can CRM increase the company’s profit?
According to CRM.org, it is the largest, and the most demanded software worldwide, and spending on CRM will increase up to $115 billion by the year 2027. In order to progress and scale your business, you need a new strategy that includes CRM, so you can keep all data in one place – social media activity, orders, ad campaigns, sales, any outstanding customer service issues, etc. Here we will summarize all benefits of CRM for your business:
- Improve customer satisfaction
- Increase the customer lifetime value
- Identify and categorize leads
- Expand your customer base through referrals
- Better internal communication
- Optimize your marketing
- Increase in sales
- Higher efficiency, more transparency
A CRM system will provide you with a clear overview of your target audience. CRM can help not only large-scale organizations with big databases of customers but also small and medium businesses to increase profit step by step.
Main stages of CRM implementation
Making a business without CRM can cost you a lot of money. You need to fully understand why do you need a CRM and which consequences you want to get.
1. Assign a leader
Choose a project manager with the necessary skills who will lead CRM implementation clearly understanding your business. If needed, you can hire an outside consultant to guide the process and build a team.
2. Define your goals and objectives
Are you planning to increase the company’s total sales or enter a new market? You need to analyze what specific problems you want to solve, which type of CRM software will help you to achieve the goals, as well as your desired outcome. But keep in mind that CRM is not an ideal solution, set real tasks, and understand that your employees will need time to train and adapt to a new tool.
3. Find the vendors
Look for the vendors that can provide you with the right CRM software. It includes:
- Analyzing the pros and cons of the particular software;
- Asking for references;
- Get all the necessary information about the company’s sales;
- Preparing a structural diagram of the future CRM system.
4. Develop your implementation plan
A poor plan can ruin the entire process. You should understand what goes into your customer relationship management procedures. Your CRM must collect and analyze data effectively in terms of quality and quantity.
5. Configuring the platform
This stage requires the largest amount of time and serious investments:
- Creating a CRM account;
- Integrating with all channels of communication;
- Adding users;
- Connecting and synchronizing email, website, social media, 1C.
You can always add additional features depending on your needs.
6. Review Results
The next step is measuring your success:
- Did you accomplish all the goals?
- How has changed your marketing performance and customer support?
- How CRM influenced the income of your company?
Monitor regularly your results so you can improve the necessary areas.
7. Training of employees
You need to be prepared that some employees might be against the CRM because they are used to work in their own style. Organize training as soon as possible.
Possible mistakes
Spending too much money
One of the most common mistakes is overrunning the budget. Don’t select the first CRM you find attractive and don’t think the more expensive CRM is the better one.
Not determining the problems
Many companies neglect analyzing their business problems in advance and finally, they get the result they were not expected. It can lead to failure or using not the full potential of CRM.
Thinking CRM is about software
CRM is a type of mindset and business strategy. It’s not just software that helps to automate certain processes but the way to change your business. Everyone in your team has to learn how to use it and take responsibility.
There are multiple myths regarding CRM, we compiled a list of some of them you need to avoid.
- CRM is very expensive and requires a lot of time to implement
Everything depends on your goals and the size of your company. You can choose any functions, hire a freelancer or a development team. The prices of CRMs have drastically changed during the last few years because of the competition.
- CRMs are too complicated
In the beginning, any new process is not easy but if you have chosen a good CRM that was implemented by a professional developer it won’t cause any problems.
- CRMs are only for big companies and I don’t need it
In our digital era, the necessity of CRM became evident you just have to choose the right CRM for your business.
Evercode Lab can offer you the best CRM systems to automate your business processes or improve the existing features. In 2016, we successfully launched the SamovarCRM and project management system for CADFEM CIS (a large software distributor). If you have any questions left, please fill out the form below and get a free consultation.