Benefits of a CRM system
A properly implemented CRM system can bring significant benefits to organizations. But when I talk about a system,
I mean the 3 P's, the complete consortium of people (employees, culture), procedures (way of doing business) and programs (supporting
applications), not just an application running on a computer.
CRM is more than just the next wave of computer-aided marketing, it's a way of doing business. If this does not make sense
to you, please (re)read the section on the
Customer Relationship Management definition.
Let's take a look at the advantages that a CRM or Customer Relationship Management system can bring.
- Shared or distributed data
As companies realize that customer relationships are happening on many levels (not just through customer service
or a web presence), they start to understand the need for sharing all available data throughout the organization. A CRM system is
an enabler for making informed decisions and follow-up, on all the different levels.
- Cost reduction
A strong point in Customer Relationship Management is that it is making the customer a partner in your business,
not just a subject. As customers are doing their own order entry, and are empowered to find the info they need to come to
a buy decision, less order entry and customer support staff is needed.
- Better Customer Service
All data concerning interactions with customers is centralized. The customer service department can greatly benefit
from this, because they have all the information they need at their fingertips. No need to guess, no need to ask the
customer for the n-th time. And through the use of push-technology, customer service reps can lead the customer towards
the information they need. And, most of the time, the customer can do this on their own, as the CRM system (remember, the 3 P's) is more
and more able to anticipate the need of the customer. The customer experience is greatly enhanced.
- Increased Customer Satisfaction
The customer feels that he is more "part of the team" instead of just a subject for sales and marketing (the proverbial number),
customer service is better, his needs are anticipated. There is no doubt that customer satisfaction will go up. If the
products sold exceed the customers expectation, of course, no CRM system can help you with shoddy products. In my opinion, the term statisfaction
is a contaminated. Many companies think that if customers are satisfied that this is a good predictor for repeat
business. However, this is not the case. Only delighted customers have a great level of loyalty.
- Better Customer Retention
If a CRM system can help to enchant customers, this will increase customer loyalty, and they will keep coming back to
buy again and again, hence customer retention.
- Loyal customers
Need I say more? Q.E.D.
- More repeat business
The repeat business is coming from the delighted customers, who are turned from doubting clients into loyal advocates.
- More new business
If you are delivering the ultimate customer experience, this will seed the word-of-mouth buzz, which will spawn more new business.
- More Profit!
More business at lower cost equals more profit.
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