No matter what industry you may be in, managing customer relationships is a crucial part of running a business. In the old days, we kept track of client data the good old fashioned way – with pen, paper and many laborious hours. Thankfully, advancements in technology have automated and improved the process, which is where CRM system comes in.
The beauty of a CRM system is that it is often multi-faceted. Data is a powerful thing, but being able to use it effectively to your advantage? Now that is something worth reading up on.
So what exactly is a CRM system? And more importantly, will it improve your business significantly?
A CRM System allows businesses to improve the effectiveness of their customer data.
The Basics Of A CRM System
Just like most products, there are different types of CRM systems available in the market. Every system has varying features to cater to differing budgets and requirements, but most – if not all – of them allow you to store, organise and study client data on a central database.
“But can’t I just use an Excel sheet for that?”, you may ask yourself.
Well, yes you can, but don’t you want to take your client data to the next level? Plus, you can use all that time saved to do something far more productive.
For instance, a good CRM system would have the ability to do the following:
- Store and update client data on a central database
- Segment data by demographics and spending history
- Reach out to the right audience with relevant communication
- Track the effectiveness of marketing campaigns with precise metrics
A CRM system, among other things, greatly improves the effectiveness of your client data – especially if you apply the system’s features to their maximum potential.
What Are The Key Benefits Of Having A Reliable CRM System?
Now, let’s get down to the main reason you clicked on this article – how a CRM system can improve your business.
1. Updated And Organised Contacts
One of the main benefits of a CRM system is that it creates more efficient processes. With a centralised database, your valuable client data isn’t just limited to the person who created or holds the document – anyone on the team can update, correct or add to the data, with authorised access of course.
Many CRM systems offer various levels of authorisation, so that the administrator can provide the right access to the right people.
2. Increased Accountability
While increased collaboration among team members may improve efficiency, it can also lead to confusion or a breakdown of information. A CRM system circumvents this problem by keeping a centralised record of client interactions in the system, so that the information remains consistent even with staff turnover.
3. Safer Storage For Your Data
A web-based CRM system stores data on a cloud, so your valuable client information is less susceptible to data loss or theft. In addition, you don’t have to worry about sapping up memory space on your hard drive with volumes of information.
4. Segment Your Client Data
Aside from storing and organising client contacts, a CRM system also allows you to segment data by key demographics, such as gender, age group, ethnicity and even spending power.
With this information, you can keep track of what each group of clients are interested in and design marketing strategies that are more relevant to them.
5. Generate Quality Leads By Targeting The Right Audience
So you’ve organised your data and kept it updated – now, what? Here’s where a CRM system can help you grow your database of clients.
In this day and age, there are plenty of marketing services which allow you to reach out to clients through various forms of communication – electronic mailers, text messages and the like. However, what makes a CRM system different from these services is that it allows you to target the right audience with relevant information.
Think about it – how many times have you received junk mail, only to delete it in irritation because it has no relevance to your life whatsoever? However, if the information was about something you were interested in – a good deal on that laptop you’ve been eyeing, for instance – wouldn’t you be glad to have received it?
With relevant information about your client’s needs and interests, you can communicate with your clients more effectively and turn them into quality leads.
6. Keep Track Of Your Marketing Campaigns
Once the marketing mailers have been sent out to the right clients, it may seem like the job is done. However, a good marketer would know that in business, you can never rest on your laurels.
A CRM system allows you to track a campaign’s performance, so you can measure the effectiveness of your communication material. For instance, how many clients actually opened the mailer? Or how many unsubscribed from your mailing list?
With these valuable insights, you can see what worked (or didn’t) and make the necessary improvements for the next campaign.
7. Track Your Client Relationships
By now, you probably know that a CRM system is basically a genie for your client data. It stores and organises data, facilitates collaboration and even allows you to manage client relationships through relevant communication channels – but wait, its benefits don’t just stop there.
You see, a CRM system has one important feature unique to it – the ability to track and study client habits. Besides organising data by demographics or segments, a good CRM system also allows you to keep track of a client’s spending and life cycle – so you can identify which clients are key to your business (hello VIPs!) and which ones need a bit of a pull to come back.
Summary
A CRM system facilitates better relationships with clients, by allowing businesses to organise, study and keep track of their client data.
What is a CRM system?
- A service that allows you to store, organise and manage client data.
- A good CRM system also allows you to segment client data and execute marketing campaigns through various forms of communication (i.e. EDMs, SMS).
What are the benefits of a CRM System?
- Updated and organised contacts on a central database
- Increased accountability among team members
- Safer data storage
- Segment client data by key demographics
- Generate quality leads by targeting the right audience
- Keep track of marketing campaigns with valuable metrics
- Track client relationships by studying their habits and life cycles
Now that you know what a CRM can do, stay tuned to our next article which details key ways to drive sales with the help of a CRM system.
Confused about CRM? Feel free to drop us an email at business@tecsosolutions.com and our resident experts would be more than happy to recommend a solution for your needs. Read more about our CRM Systems here.