Small businesses can reap the benefits of customer relationship management (CRM) in a multitude of ways, which can lead to business growth. In fact, CRM generates about $8.71 for every dollar spent according to Nucleus ROI, which is roughly 774 percent return on investment. The sad reality is that many small businesses do not invest in CRM, which means they are leaving money on the table.
A common myth among small businesses is that CRM is typically reserved for enterprise companies. Here’s the ultimate truth: no business is too small to take advantage of CRM. If large companies can use CRM to grow their customer base, increase profitability and transform their business, why can’t small businesses do the same?
Many small businesses are often reluctant to invest in CRM because they mistakenly believe it will break the bank and eat up resources during the implementation process. On top of that, many simply do not understand the technology. The good news is that there are solutions catered to small businesses that make CRM simple and easy to use so these common worries can be put aside.
If you’re new to CRM, the technology can be intimidating and can easily go over your head. In this piece, you’ll learn the benefits of CRM and how it can help small businesses increase sales, gain more customers and grow faster. Before we dive into the benefits of CRM, let’s take a closer look at what the technology is.
What is CRM?
It boils down to this: CRM is software that gathers data about your current and prospective customers so that you can manage sales processes better, help customers faster and market smarter. In the simplest way, think of CRM as a digital version of a salesperson’s address book, but way more advanced.
Say your sales reps jot down information about customers on paper. This method may be manageable for a while, but when your business starts flourishing and your customer base skyrockets, it will be difficult to track this data with just a pen and paper. With CRM, your sales team can accurately track this information in one central place so they can leverage this data for better and faster selling.
CRM is an invaluable asset for any business and the companies that invest in this technology typically gain a competitive edge. If you aren’t convinced enough to invest in a CRM for your small business, here are sure-fire ways this type of solution will increase revenue and grow your company.
Focus on Better Leads
CRM helps sales reps stay organized and streamline sales processes, which lets them easily keep track of all leads and identify prospective customers that will likely result in a sale. Essentially, it prevents salespeople from chasing dead leads that will waste resources. Thus, your salespeople have more time to focus on what matters the most: closing more deals that will increase your bottom line.
Another advantage of using CRM is that it helps companies make more informed and smarter sales decisions. For example, it can help you identify which avenues—to name a few: company website, social media, email marketing—that generate the most leads and sales. It can also identify which sales reps are not performing well and give you an accurate benchmark for your sales forecasts. With this information, you can build a robust sales program that will increase profitability.
Better Customer Service
It costs five to 25 times more to get a new customer than retain an existing one, so it’s important your current customers are happy. In addition, repeat customers are key to generating revenue at a faster rate. In fact, current customers spend 67 percent more than new ones. The secret to good customer retention is to provide top-notch customer service and to do that, you’ll need CRM.
With CRM, your company can provide the best customer service and ensure everything is smooth sailing with customer support. As soon as a customer contacts your company, your representatives can leverage customer information from your CRM such as activity related to past purchases, purchase behavior and any other information that can help reps provide the best care.
When it comes to customer support, speed and accuracy are important. The good thing about CRM is that it can easily document different types of cases so that other representatives can quickly refer to them. CRM essentially acts as a database of different scenarios and recommended solutions, which your reps can easily access so they can close cases quicker and faster. If there is a scenario that is unique and the solution is not apparent, a CRM allows reps to flag it to other teammates and crowdsource answers as well.
More Time to Focus on Larger Business Objectives
At the end of the day, employees at small businesses have limited time because they have minimal resources, often juggle different roles and work long hours. This prevents them from focusing on larger business objectives that will move the needle and grow the company. If that sounds like your business, a CRM will do the trick and free up more time for your team.
With the right CRM, your company can significantly reduce tasks that are process-heavy so that employees can focus on the needs of your customers. For example, most businesses have repetitive tasks that are done in a pattern like sending monthly reports to customers or manual data entry. CRM can automate these tedious tasks and processes so that your team can focus on what will increase sales: closing deals, providing better customer care and marketing to prospects that are likely to result in a sale.
The world of CRM can be daunting for many small businesses, but it doesn’t have to be. Whether it’s a floral shop, daycare or online retailer, any type of small business can gain the benefits of CRM and experience transformational growth. At the end of the day, every small business wants to increase sales and grow their business; the key to unlocking this is with CRM for small businesses.