The main objective of CRM implementation in an organization is to retain its loyal customers because in today’s highly competitive market a company’s competitive advantages come from its ability to sustain long-term relationships with customers.
The customer-centred business strategy creates an organizational structure wherein everything orbits around the customer; in turn, it facilitates long-term strategic benefits.
Since loyal customers are the most crucial assets of a company, in recent years, companies have been considerably concentrating on creating value for their customers.
They have been implementing CRM to develop long-term relationships with the customers.
It is a company-wide drive and CRM’s ROI is often underrated in the long run and overrated in the short run. If your company meets and matches the fundamentals of CRM implementation, it is sure to enjoy the serious advantages of CRM implementation.
Key benefits of CRM implementation in your company can be enumerated as under:
- You can understand your company’s customers’ preferences and needs, based on that you can then help your customers with better facilities along with an outstanding and excellent customer value experience and proposition.
- Customer retention is one of the most important benefits of a CRM implementation. Based on your customers’ preferences and needs, you can assist your customers with effective and customized customer services and care. This way, the software allows you to maintain your customers’ retention.
- Customers, who are better served and delighted with your company’s services and care, turn out to be more loyal to you and this helps in generating perpetual sources of benefits and revenue from the loyal customers.
- With the adoption and implementation of CRM technology as well as customer knowledge, your company can get the chances for cross-sell, up-sell, and deep-sell. This, as a result, leads to effective and winning campaign management.
- Satisfied customers repeatedly come to make purchases, and thus make your company more able to do deep-sell, cross-sell and up-sell to the contented customers.
- Loyal and satisfied customers are also essential sources of positive referral creation. Customers, who get satisfactory or outstanding service, have high chances of sharing their positive customer experience and make free advertising by doing mouth publicity of your company’s services and products. Positive mouth publicity of your company’s products and services is said to be more believable and reliable than your company’s commercial communication tools such as online and offline advertising campaigns. This way, it draws more customers without having to make any additional expenses.
- With positive mouth publicity, up-sell and cross-sell prospects and referrals, you cannot only easily acquire new customers but also curtail the cost of your customer acquisition.
- Customers, who have a hassle-free experience and are content with your services, are more likely to pay some extra premium price instead of trying a new organization.
As shown in the image below, the benefits of CRM software implementation in your organization can be categorized under three aspects: customer profitability, acquisition and retention.
The success of an organization is dependent upon the way it successfully implements CRM software and its ability to retain its customers. Customer acquisition requires plenty of time, effort, and money. Since drawing new customers needs high costs, concentrating on customer acquisition without focusing on retaining the new customers is a waste of money and time to the company.
Ensuring customer loyalty helps with considerable benefits to the company in terms of profitability.
Since the aim of CRM software technology is to acquire and retain profitable customers and get partnered with them, acquiring and retaining profitable customers are also possible if you deliver the right value propositions to your customers, develop customer-oriented processes, and motivate employees in your company.
As you can see in the image below, CRM technology or system helps you in achieving the objectives of CRM. You need to find out your company’s valued customers and evaluate their lifelong value and share of their wallet for its products.
The CRM technology helps you analyze your customers’ revenue and cost data and segment them, based on their profitability to get more valuable customers. By segmenting, you will be able to build and broaden your relationships with the profitable customers, avoid the unwanted customer segments and handle expenses to facilitate low margin segments worthwhile.
Hence, by harnessing the power of CRM technology, your organization can efficiently target direct marketing efforts. Besides, the software helps you in analyzing the service and product buying as well as usage behaviour of your customers; so that you are able to better understand the existing and coming needs of customers and in return help with the correct value propositions to your customers.
With a CRM system, you can also give information to the front line to better serve your customers, efficiently manage the supply chain, and process the transactions quicker.
Excellent customer experience and service is one of the most crucial parts of a CRM tool.
Hence, unless you successfully implement CRM, you will not be able to deliver outstanding customer experience and service. And if you want your customers to have an excellent experience, you need to train and support your employees with the processes and technologies that make them more effective while delivering the service.
Front line workers in your firm need to be served with the customers’ data and their contact history.
They need to know the customers’ issues, foresee predicted customer behaviour, and give proper responses.
Hence, during service encounters, you need to support your workforce with CRM technology.
The CRM technology allows employees to access the relevant customer data and by acquiring the same, they (your employees) can recognize prospects, offer custom-made services and offers, deepen your customer loyalty, reactivate their purchases, and avoid their mistakes, and deliver satisfactory solutions and responses.
It also allows your workforce to access a single customer view across multiple channels, better facilitate them by providing a superior or outstanding customer experience. Taking advantage of the CRM tools, your reps can foster customer relationships.
Additionally, CRM programmes allow for the monitoring of customer defection and retention rates along with their satisfaction level. By keeping track of the satisfaction levels and defection rates of your target customers, you can, thus, take necessary yet precautionary measures for the avoidance of any further customer defections.
Want to know how a CRM can improve your customer retention and satisfaction rate?
Spire is here to help you through CRM implementation process and benefits of having CRM in your org.