5 Benefits of Customer Relationship Management (CRM) for Business
Customer relationship management is a strategy that can improve customer experience in conducting transactions with a company.
This is because this business strategy can bring communication and interaction between the company and customers closer, so that transactions will feel warmer.
In fact, if done continuously, customer relationship management can make it difficult for customers to move to other competitors.
Let's look at further information regarding the goals, benefits and stages of customer relationship management in the business world through the following article!
What is Customer Relationship Management (CRM)?
The definition of customer relationship management (CRM) or customer relationship management is a business strategy in the form of an approach and management of relationships between a company and customers.
It is believed that CRM strategies can help companies better understand customer needs and preferences.
Apart from that, this strategy can also maintain good relations with customers so that they do not easily move to other competitors.
In general, CRM is a strategy that can involve various aspects, starting from collecting customer data, data analysis, sales management, customer service, as well as interaction and communication with customers.
Customer Relationship Management Components
There are three important components that need to be considered in implementing a CRM strategy, namely customers, management and relationships. The following is an explanation of each:
- Customers , namely all parties who will, are, or have ever used a company's services/products.
- Relationship , namely two-way communication carried out by customers and companies to provide long-term satisfaction for both parties.
- Management , namely the regulatory and management process that focuses on improving relationships and interactions between the company and customers.
Objectives of Customer Relationship Management
The main aim of customer relationship management is to bring closer communication between the company and customers. Apart from that, a number of goals that can be achieved by companies by implementing a CRM strategy are as follows:
- Maximizing relationships with customers to help increase company sales, both through up-selling and cross selling .
- Present complete information about customers to optimize interactions and relationships with the company. This can help retain customers who provide added value to the company.
- Utilize customer information and data in an integrated manner to provide satisfactory service and meet customer needs optimally.
- Can convey information from the company and customers consistently.
Example of Customer Relationship Management Stages
In general, there are three main stages that need to be carried out in implementing customer relationship management , namely:
A. Attract New Customers ( Acquire )
- Carry out promotions and approach customers as best as possible.
- Providing comfort and satisfaction to customers when transacting with the company.
- Provide adaptive and positive responses to customers when they need something.
B. Adding Customer Value ( Enhance )
- Up selling : A strategy carried out by offering the same product but of higher quality.
- Cross selling : Strategy of offering additional products when customers have already made transactions on a product. For example, you can offer keyboards and mice to customers who have already purchased a computer monitor.
C. Maintaining Customers ( Retain )
- Providing channels or channels for customers to communicate or convey criticism and suggestions to the company.
- Willing to listen to complaints from customers.
- Disseminate the latest product promos to customers, either via email or social media.
Benefits of Customer Relationship Management in Business
If done correctly and sustainably, customer relationship management can provide a number of benefits for the sustainability of a business, including the following:
1. Reduce operational costs
The first benefit of customer relationship management is that it can help reduce operational costs.
The reason is, by implementing CRM, the company already has a definite target market and knows what customer needs are.
This enables companies to carry out promotional strategies appropriately and wisely so as to minimize unnecessary expenses.
2. Maximize Operational Efficiency
Apart from reducing costs, CRM done correctly can also maximize operational efficiency.
Through this strategy, you don't need to prepare unnecessary business activities because you are worried about decreasing customer quality. Because, CRM is able to help companies provide maximum, effective and efficient service.
3. Encourage Customer Loyalty
Good relationships and interactions between companies and customers can certainly have various positive impacts, one of which is encouraging customer loyalty.
Because, CRM can maximize service and provide satisfaction to customers so that they remain loyal to your company.
4. Increase Time to Market
Time to market is the duration or time period needed by a company to develop, produce and launch new products.
By implementing CRM, companies will obtain complete information about customers and target markets, starting from purchasing trends to customer transaction times.
This can certainly help companies to develop new products more quickly and implement appropriate promotional strategies in the future.
5. Increase Income
Because it can reduce costs, increase operational efficiency, and encourage customer loyalty, CRM can indirectly increase overall company revenue.
Therefore, it is important for every company to implement CRM strategies appropriately and wisely in order to develop the business sustainably.
There are quite a lot of CRM activities in a business that need to be carried out, but now there are tools such as applications or software that can help make the process easier. Here are some applications or software that business owners can use:
- HubSpot
- Pipedrive
- Zoho
- Insightly
- Monday Sales CRM
- Qontak
- Odoo.com
- Mailchimp
Apart from the applications mentioned above, there is other software that you can use to make CRM activities easier. You can choose it according to your business needs and of course according to your company budget.
This is complete information about customer relationship management and its role in the success of your business.
In an effort to implement a CRM strategy optimally, try to understand what customers' needs and desires are during transactions.
This can be done in various ways, one of which is using a payment method that suits customer preferences.
Talking about payment methods, Faspay can be a solution to develop your business.
Faspay allows your business to accept online payments via various methods, such as e-wallet , online credit , virtual account , retail payment , credit card , and many more.
No need to worry, Faspay itself is trusted by 5000+ merchants to help optimize their business operations.