13 Benefits of CRM for Companies
For businesses, establishing good relationships with customers is very important. Therefore, many businesses implement CRM ( Customer Relationship Management ).
The benefit of CRM is that it helps businesses monitor all customer interactions and provides customer-related information, including sales.
Meanwhile, Forbes notes that there are 6 benefits of CRM for companies, such as centralizing customer data, identifying prospects, increasing customer retention ratios, making decisions easier, automating repetitive tasks and increasing revenue.
However, the benefits of CRM don't stop there. For more details, see the following discussion about the benefits of CRM!
Before discussing the benefits of CRM further, you should know the meaning of CRM.
The abbreviation CRM ( Customer Relationship Management) is a system designed to manage interactions that occur with your customers and potential customers.
For a more interactive explanation of what CRM is, you can watch the following video:
13 Main Benefits of CRM for Companies
The benefit of CRM is managing customer relationships better. Establishing customer relationships with the company can increase customer loyalty and company revenue.
Apart from that, there are still many benefits of CRM that are useful for companies, namely:
1. Centralize Information
CRM maintains all information about your customers in one database. This makes the information easily accessible to anyone in your company who needs it.
So when the sales team needs it to see what products customers are most interested in. They can see the history of customer interactions with previous companies.
CRM also includes interaction records that are useful for developing marketing strategies and future sales promotions. This saves your employees time digging through old files and notes, and it provides a better, more productive experience for customers.
2. Increased Productivity and Efficiency
By tracking the activities of the sales team and business team, managers can accurately measure each individual's performance which will hold them accountable for meeting targets.
3. Establish better customer relationships
The more you know and remember about your clients (or customers), the more your clients know that you care about them. This allows you to forge stronger connections. This results in fostering deeper relationships with your clients.
4. Makes team collaboration easier
Many companies that fail to get their executives to use a CRM system then fail to reap the benefits of CRM. Managers who use a CRM system can easily instruct staff and monitor their performance so that there is a lot of collaboration between them.
5. Increase Income
By tracking all leads, companies can increase revenue.
Once everyone learns and uses the CRM system , productivity will increase, sales cycles become shorter, and you have the ability to provide additional products and services to clients resulting in increased client satisfaction.
6. Customer Service Efficiency
Again, the more you know about your clients, the better your ability to serve them.
If everyone uses a CRM system to record interactions with their customers – EVERY customer interaction, then everyone else in the company can serve customers with the same knowledge as previously discussed.
7. Higher Employee Satisfaction
The more knowledge your employees have, the more empowered and engaged they will be.
Having an accurate and up-to-date CRM system that everyone uses means there is access that can help employees solve client problems.
In this way, companies can increase employee productivity and make clients happy.
8. Cost savings
When starting to use, CRM will feel expensive and time consuming, over time the benefits of CRM will be far greater than the costs.
Sales team members can schedule meetings with better prospects in the same geographic area. The customer service team is better able to solve client problems.
9. Reduced Friction with Customers
When a client engages with only one member company, the risk of attrition is 40%. When there are 5 or more people involved in a client relationship, the risk of attrition drops to less than 5%.
Then, what if the benefits of CRM cannot be felt or the company's CRM implementation fails? Learn in the article Causes of CRM Project Failure .
10. Better Customer Segmentation
CRM will automatically segment your contact list based on certain criteria. This makes it easier for you to find the contacts you want to contact at any given time. You can also sort contacts by location, gender, age, buyer stage, and more.
11. More Accurate Sales Predictions
With any business operation, you must be able to review past performance and strategically plan for future business. The benefits of CRM certainly help to estimate the sales results you will get.
By using the automated sales reporting feature in your CRM application, you can identify key trends and get a picture of what to expect from your future sales cycle performance, while adjusting your goals and metrics to match those projections.
12. More Accurate Sales Forecast
The next advantage for companies using CRM is that it allows for more accurate sales forecasts
The automated sales reporting feature in a CRM application can help you to identify key trends and get an idea of what to expect from your future sales cycle.
Plus, you can also customize it with goals and metrics to match your sales projections.
13. Provide Detailed Analysis and Reports
The large amount of customer data that needs to be managed can be a hassle, because it will take you a long time to analyze all the data. So, is there a solution?
Of course there is, namely using a CRM application that comes with built-in analytics capabilities to contextualize data, break it down into actionable items, and turn it into easy-to-understand metrics.
By using CRM, you can not only find out analyzes and reports about customers, but also the achievements of your members and your team as a whole.