The question of whether to get CRM or not is what many small business owners might have on their minds. For some, it was probably working fine with having customers’ data in an Excel spreadsheet or a Google document. For a quick start, it might have been enough, but as you grow, it becomes less and less effective.
The short answer to the question is yes, every business that wants to grow needs to invest in a CRM solution. Let’s dive into details and reasons why it is so.
What Is CRM?
CRM stands for customer relationship management software. It is one single database on clients, their contacts, and interactions with a business. Whether you opt for custom CRM solutions designed by an agency with expertise and knowledge of your industry or you decide on a ready-to-go solution, the benefits are there. Here are some statistics to prove custom CRM solutions work.
According to Cloudsware, companies that implement a CRM experience a 300% increase in conversion rates.
Nucleus Research has found that for every dollar spent on CRM, a company receives $8.71 ROI.
According to Capterra, businesses that go for CRM experience a 47% increase in client retention.
Such software solutions allow optimizing processes and increasing buyer experience. And at the core of it, every business success relies directly on customer experience. Products and services are not unique; they can be found elsewhere. But if you offer a personalized and unique approach to clients, they are going to come back to you.
How Does CRM Work?
Both custom CRM software solutions and out-of-the-box tools have similar functions. Of course, in the second case, they will be less flexible and somewhat limited. But usually, the functionality can be divided into several major groups.
Buyer Information:
records on all contacts and their entering point;
all the data is centralized and can be accessed online from different devices and any place;
all departments can access crucial information like records and preferences, whether it is a sales team, operations, or support.
Leads and Sales Management:
saves the data on which products the customer is interested in;
saves the sales process for every buyer, from entering point to sealing the deal;
helps optimize a sales pipeline and target special offers to particular customers.
Marketing and Promotion Features:
analysis and interpretation of your audience for better segmentation and precise targeting;
shows which campaigns were effective and which ones were less successful;
helps plan out data-driven campaigns for the future with fewer risks;
assists in creating a marketing funnel to increase sales, revenue, and retention.
Customer Communication Management:
provides information on what channels clients use and prefer, like social media, email, or phone calls;
collects data on all interactions with clients from all other systems and operations to create a personalized experience;
optimizes internal processes;
all teams working with clients can collaborate on gathering information and accessing it in seconds;
many tasks are automated, like creating a client profile, saving entry point, or marking the deal;
automation and collaboration make processes faster and more transparent, allowing your team to avoid redundant tasks (no one wants to spend their time filling in that huge Excel file that keeps lagging because of the sheer amount of information);
allows seeing reports on best practices and most successful campaigns.
And another amazing set of features a business gets with a CRM system is all the data analytics available. There are many reports in terms of marketing, sales, and support. It gives crucial insights into optimizing the workflow and making the customer experience even better.
Benefits of Investing in Custom CRM as a Small Business
The difference between a custom product and an out-of-the-box solution is pretty obvious. The first one is like a tailored suit that inclines all your specific needs and processes. It integrates with other systems you use and offers high-quality features.
An out-of-the-box solution is usually more affordable. The reason is that it is created for the most general audience ever. So, it is not specific and has a lot of features you do not need but still have to pay for. It also might not have features you do find crucial. It is like a mass-market suit, which works for some, but it is never as good as the one done specifically for you.
CRM custom solutions allow integrating several major features based on your goals and objectives. Of course, the choice depends on many factors and is always up to the company.
Overall, implementation of any CRM system, when done right, ensures the following benefits.
Constant Access to Essential Information
Wherever your sales representatives are, they can access necessary data via phones or laptops to make sure they are ready for the meeting with a client. The team can safely work from home or even from another country if necessary. And all the data is stored in one place, so the collaboration is simple as well.
Keeping Data Safe
Cloud storage and constant backups make sure you never lose any client information. Also, it is all centralized, so if your sales rep leaves the company, you’ll still have all the data on the buyers.
Data-Driven Sales and Marketing
Long gone are the days when promotion campaigns or special events were based on intuition. With a CRM in place, you get all the crucial data to make fact-based decisions. Such systems track everything, from upcoming booked meetings to the best communication channels to use. These reports help forecast sales, open new markets, target niche audiences, and plan campaigns much more effectively.
Effective Email Campaigns
Instead of sending one proposal to everyone, you can target specific audiences and tailor the offer to them specifically. You can also see when they received the last email from you and how they engaged with it. And it is possible to send the email right from the CRM itself.
Easy Scalability
As your business grows, you’ll have all the processes and procedures in place. All of them are stored in CRM so every employee can access them and rely on one standardized protocol. It is extremely easy to scale up when the number of clients grows exponentially.
Nurturing Leads
After the initial lead is generated, you can nurture them with CRM. It is easy to capture more of them and track their progress in the sales funnel. You can target them with special campaigns, emails, or advertising to turn leads into customers. And with all the information collected, employees can prioritize those leads who are ready to buy.
Knowing Your Customers Better
You also might like: our custom CRM guide
The customer is at the center of any business model. The more you know about them, the better service you can provide. With CRM, one can see the needs, wants, and pain points to address. You can consider preferences and analyze the possible niche audience that can be targeted. All of that results in long-term and trustful relations with customers.
Conclusion
Yes, a CRM is worth it for any small business. After all, you probably do not want to remain a small business forever. Such software is an incredible tool to know your customers better, offer them high-quality services, and increase revenue.