In an increasingly competitive world, almost each and every company realises the importance of a long-term relationship with its customers. Nevertheless, many companies face problems maintaining this relationship, resulting in the higher customer churn rate. This issue is further deteriorated by an inadequate data management system where their customers’ accounts are not properly segmented, and the data are stored separately, preventing the company to get the full picture of the data itself. Without a proper data management system, poor communication and weak customer service are inevitable, and thus raises the importance of Customer Relationship Management (CRM). CRM is an approach to manage company’s interaction with current and potential future customers that tries to analyse data about customers’ history and to improve business relationships with customers, mainly focusing on customer retention and ultimately driving sales growth (Bain & Company, 2015). Below are some of the reason why your business need a CRM system.
CRM allows companies to identify customers’ behavior, thereby enabling them to pinpoint the correct timing to market their products. The data itself can be further analysed to provide them with different customer segmentation, such as the most profitable customers, purchase quantity, and intensity, etc. By utilising customer segmentation, they will be able to boost their marketing resources and only focus on their targeted customers.
CRM helps businesses in managing new leads, and nurturing these new leads into sales. Many of the CRM applications have an automated workflow that trigger actions based on events. For example, a sales representative is notified when a customer is reading a particular web page, sign up on a particular form etc. It also provides reminder to Sales Representative when to follow up. This helps Sales Rep to be on top of their game and increasing chances in closing deals.
As CRM is able to record all interactions between customers and the business, therefore, sales representative will be able to promote their products through up-selling and cross-selling to their customers effectively at the right time.
As the company is now able to increase sales, retain existing customers, this results in an increase in the companies’ revenue.
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