Customer relationship management (CRM) software helps companies build and maintain relationships with their customers. Cap Gemini and International Data Corporation conducted a study in 1999 which showed that CRM applications were gaining popularity with companies throughout Europe and the United States. Fifteen years later it has since become one of the most effective customer service tools any company can use.
Why has CRM software become so important?
Advantages of CRM Software
Every business owner knows they need to make customer service one of their top priorities. Unfortunately, they often don’t have the time and energy needed to address all customer concerns. CRM software makes it much easier to engage with customers and address their needs in a timelier manner. Here are some of the reasons SMEs use it.
Customer Responsiveness
Customer engagement is a critical if you want to retain your customers. Your customers need to be able to raise any concerns with you as they arise. In turn, you need to assure your customers that you will resolve their concerns. One study found that 41% of customers expect businesses to respond to their emails within six hours. You need to develop a customer response plan to meet their expectations.
CRM software makes it easier to communicate with your customers through email, your website and various social media channels. You can also integrate your communication tools together and allows you to respond to customers in one place.
Cost Savings
Companies have traditionally used mail or call centers to respond to customer complaints. This takes a lot of overhead because companies need to pay for the facilities, employee wages and training costs. Jason Barrett, director of monetization of Grapple, presented research showing CRM software can help companies reduce expenses while implementing a customer service plan.
Central Customer Database
You can use CRM software to store information on all of your customers. Here are some types of information that you can track:
- Customer appointments
- Customer responses and feedback during meetings
- Outstanding requests that need to be addressed
Large companies are often overwhelmed with their customers’ needs and can have a difficult time keeping track of them. CRM software will make the job much easier.
Team Focused Customer Service
Many businesses have a department dedicated specifically to customer service. However, numerous studies have shown that companies can improve customer satisfaction when all employees are dedicated to it. Ed Horrell, author of The Kindness Revolution: The Company-wide Culture Shift That Inspires Phenomenal Customer Service, said that many companies are still having a difficult time gettting all employees involved. CRM tools make it easier for them to collaborate to address customer requests.
CRM software helps all of your employees track important data needed to provide a better experience for their customers. You can also share feedback with your employees on what steps needed to be taken and what changes need to be implemented. This helps ensure everyone is on the same page and holds them accountable.
Identifying Marketing Opportunities
Companies are always looking out for new markets for their products and services. You can review data on previous customers to determine what customers need your products and services. Experts from Salesfusion and Advantage have found that companies can reach potential customers much more efficiently when they integrate their CRM software with a marketing management application.
Leverage CRM Software
Improving customer satisfaction should always be a top priority. CRM software can make it a lot easier to build relationships with your customers.
