What Can a CRM Do for Your Small Business?

Some of the first killer applications for personal computers were electronic address books that replaced the Rolodex. They were simply contact management systems, electronic databases that made it easier to keep all of your contacts up to date. In the era before office networks, laptops, smart phones and the World Wide Web, many businesses would print out contact lists and share them with employees.

The modern equivalent is a Customer Relationship Management (CRM) system, software designed to connect customer interactions such as email, phone calls and contracts with appointments, fulfillment and other deliverables across your entire company.  CRM solutions promise faster customer service for less money, better customer retention and, ultimately, more customer loyalty and increased sales.

CRM systems are being adopted worldwide at a rapid pace. IDC reports that the CRM software industry grew to 18 billion in worldwide revenue in 2012. Meanwhile, Gartner anticipates a 500 percent rise in mobile CRM by 2014.

Today, there are a plethora of CRM systems available to businesses of all sizes and industries. Large companies will look to enterprise level solutions such as Oracle or Salesforce.  Small companies will benefit from solutions like Insightly that are specifically designed to meet the budget, resource constraints and feature needs of small businesses.

In the age of Internet everywhere and billions of connected devices, many small businesses will look to cloud-based (online) CRM’s. Why? Because such solutions provide anytime, anywhere access and do not require you to purchase and maintain expensive hardware or have a full-time IT person to keep the system up to date.

So what should you expect from a CRM?

1. It should serve as a centralized collection and storage system, so you can share sales, marketing and customer service data and track customer interactions throughout your organization. That means everyone on your team has access to the latest information about each customer – when the last appointment took place, what was covered, what that customer is interested in, etc. That allows you to personalize relationships with customers, regardless of which employee deals directly with them at any given time. The last thing customers want is to sit on hold on the phone, or be transferred from person to person to get the answer they need.
    
2. Many CRM systems also contain project management and administrative features, such as the ability to create tasks and milestones for projects, and receive email reminders for upcoming activity. These features are incredibly useful for making sure that you are meeting client expectations and obligations and delivering on time.
    
3. You can pull reports based on the data you feed the system. Find out which products are profitable, and which are garnering customer complaints. Who are your most profitable customers and what are they buying? Internally, you can find out how long it takes sales reps to return customer contacts. Look at your pipeline, with an eye to potential profits. How many deals are in the pipeline? Which deals are moving forward, and which have vanished?

   You can also track the effectiveness of your marketing initiatives, including your website, direct mail and email campaigns.  Your CRM solution should eliminate any bottlenecks and capture useful data to track campaign effectiveness and make intelligent marketing investment decisions.
    

4. By using a CRM system effectively, you can expect faster turnaround time for closing a sale. In addition, as different company departments are able to share data, employees can efficiently work as a team, as opposed to working individually or in isolated groups.

So expect your CRM system to help you understand your customers better, serve them more effectively and design new strategies that will increase customer loyalty, along with sales. Study after study shows that a positive experience is key to customer retention and ultimately to your bottom line.  http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/

What makes a good CRM? The definition of a good CRM depends on the needs and objectives of your company. Every CRM tool is different, so some of what you can expect depends on the system you choose. But before you sign on the dotted line here are a few key things to keep in mind:

1. Affordability. Consider the total cost of ownership, not just licensing or subscription fees. Do you plan on using an on-premise solution or a cloud solution? There are significant differences in the amount of time and money you need to invest between these two options. Do you need to spend time and money on training? Does the vendor provide free support? Does mobile access or additional storage cost extra? Do you need your CRM to integrate with other systems already in use? How much will that cost? If your company grows how much will any additional licenses cost?
    
2. Value. Many CRM providers offer tiered plans based on group size to help you decide what package may be right for you. But using group size as your only deciding factor may lead you to be penny-wise and pound-foolish. Look at the features and functionality in a higher tier than you would normally choose. Ask yourself if these things save time, money or help generate sales?  If the answer is yes then the value received may more than offset the added cost of the higher tier.
    
3. Features. Talk to the people who will be using the system before you start shopping. Make sure you know how your current business processes are working. Find out what’s missing, and what staff members would like a CRM system to do. Do you need help desk automation, sales forecasting, order processing and tracking, and advanced analytics? Increasingly important features include mobile phone access and integration with social media. Ultimately, you’ll have to decide which features are critical to your company’s success.
    
4. Ease-of-Use. Your Sales, Marketing and Customer Service people should not be terrified of using the software. It has to be user-friendly. Otherwise, your team will stubbornly resist using it, and your CRM will never live up to its promised value. Take advantage of free trials that are an excellent way to help you evaluate how easy the software is to use. 

In summary, a CRM system leverages technology to efficiently identify and capture qualified leads, convert them into customers, and cultivate loyal relationships that keep customers in the fold for years to come. Choose the right system, and you can expect to accomplish those goals faster and better than in the past.