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The Worst Is Almost Over: How CRM Will Help You During The Economic Recovery
The good times lasted until the global downturn when the new leads and conversion ratios had dropped down to a level from which most thought they’d never rise again. Prior to the economic crisis, CRM was looked upon by many as an unnecessary expense, and that makes sense in some ways—business was booming, and the finer nuances of missed opportunities and customer retention were not important issues. Now the ground realities have changed. With sales figures plummeting, leads shrinking and expenses mounting, customer retention has become a crucial factor in survival.
Why CRM?
As generating new orders and lead conversions become more difficult, CRM is increasingly occupying the place it deserves in company operations. CRM should be seen as a company asset rather than an expense, as it helps in customer retention and also is an effective method of gaining new customers. A CRM solution is necessary at all times, but more so when the economy is recovering, as now it is all about keeping costs down, holding on to old customers and achieving objectives with minimal resources. In the present scenario, implementation of a good CRM system may well mean the difference between survival and total failure.
The Importance of CRM
CRM, or “Customer Relations Management” means just that: giving your customers excellent and efficient service and keeping them happy. The benefit of having a CRM system is that you’ll have a better understanding of your customers, which enables you to find opportunities to provide them with additional products and services. A satisfied customer is an endless source of revenue and also becomes an asset in terms of enhancing your company reputation and word-of-mouth publicity. CRM helps in ensuring customer loyalty and repeat business, which is the lifeline of a company in times of economic uncertainty.
Also, acquiring new customers is just as important, because without growth in the customer base, a business can’t prosper. The new generation of CRM products has the capacity to increase the reach of your sales and marketing plans through the implementation of continuous improvements in procedures, productivity and above all, reduced costs.
How CRM helps
Your use of an effective CRM product helps in two ways:
- Increase of revenue from current customer base through effective and personalized delivery of service. This translates into a cross-sell and up-sell advantage from each customer as you build a relationship for the long-term and increase average revenue per client. CRM ensures that the time and expense needed to provide good service get reduced and your customers enjoy an exceptional experience every time, which ensures loyalty and repeat business.
- Getting new business in a cost-effective manner. Your sales force understands how to focus on leads that are most likely to convert into new orders. The cost-per-lead comes down significantly as you design customized marketing strategy for specific market segments and individual prospects. You can cut down on unnecessary documentation and time-consuming routine tasks, thereby reducing your administrative expenses and operational costs.
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