For any business customer relationship management plays a crucial role. It is said that it costs six times more to acquire a new customer rather than to retain the old customer. Hence it is very important to retain your customer while you grow as an organization expanding your base.
In order to retain the customers, it becomes inevitable to provide a personalized service. In order to achieve this, it is important and essential to understand a customer. Though gathering information about your customer is quite possible, it becomes a challenge to store and retrieve the information at the right time, to put it to an effective usage.
At this juncture comes the application of various CRM tools. They not only empower the concerned person but also help create a centralized repository, which enables the access across multiple functions of the organization, thus empowering every department with consumer insights.
Various loyalty programs across various companies are application of the CRM tools. This knowledge base enables the marketers to promote products as per the previous spend patterns of the consumers. This helps them ensure that there are promotions in place for every segment of the consumer. When we talk from a sales representative front, it provides information about the consumer he is currently dealing with. This puts him in a better position to convert the customer by understanding his requirements better. On being provided such a personalized service the customer realizes the importance the organization pays to its customers.
One another dimension a CRM tool could offer, is based on the data stored in the repository. It could animate the data to predict the future sales estimates by using various analytical models. It could derive patterns to set their strategies right for the days ahead.
For an organization, the user base decides if it’s the right time to make a CRM investment or not. It is important for an organization to ensure that it feeds consistent information across various touch points and also, they align with the strategy of the organization.
Due to CRM's diversity, it doesn't only benefit larger businesses -- using and maintaining a CRM tool is the basis for a scalable sales and marketing system. Any company will benefit from maintaining a record of which conversations, purchases and marketing material can be associated with leads and customers.
Written by: Parithimar Kalaignar, currently pursuing BLP with specialization in Marketing course at SOIL. He is an Incipient writer and an avid reader.