What is customer relationship management (definition) ? Customer relationship management (crm) is a practice of managing a company’s interactions with current and future customers.
Further crm tries to analyze a customer’s history with a company to improve customer relationships – i.e customer retention to drive sales growth. (Source: Wikipedia)
Let’s take a look at some statistics regarding customer relationship management.
- The customer relationship management market will be worth $36.4 billion worldwide by 2017. (Source: Base CRM)
- Up to 23.8% of respondents in a survey by DiscoverOrg are not using any crm system. (Source: Base CRM)
- As of 2012, companies still had not taken advantage of 80% of potential from crm use. Integration, extension, and collaboration are the major areas where return-on-investment improvement can occur. (Source: Base CRM)
- crm offers an average return of $5.60 for every $1.00 spent. (Source: Base CRM)
- Overall crm usage increase in recent years, from 56% in 2012 to 74% in 2013. (Source: Base CRM)
- Size matters. 91% of companies with more than 11 employees use a crm system, compared with 50% of companies employing fewer than 10 people. (Source: Base CRM
- 3 out of 4 consumers say they spent more money with a company because of a positive customer experience. (Source: Global Customer Service Study)
- crm gives an average of $8.71 per $1.00 spent. Which is even higher than previously mentioned. It’s safe to say that your ROI is definitely there with crm. (Source: Nucleus Research)
- Sales reps saw productivity increase by 26.4% when adding social networking and mobile access to crm applications. (Source: Nucleus Research)
- Per sales person, a crm can increase revenue by a whopping 41%. (Source: Trackvia.com)
- crm is known to improve customer retention, by as much as 27%. (Source: Trackvia.com)
- 6 out of 10 small businesses are using their crm for email marketing. (Source: MarketingCharts.com)
According to Business News Daily
The best customer relationship management software for 2016 is as follows
For small business overall
- Robust all-in-one, full-feature software
- Loads of 3rd party integrations via the Salesforce AppExchange
- 24/7 phone and live chat support
For very small business
- Simple, easy-to-use
- Basic features, you can scale as your business grows
- A fraction of the cost compared to similar crm systems.
- Up to 10 users free
- Premium features at no extra cost
- No service contract required
As you can see based on the statistics we discussed prior there are a number of advantages most specifically the return-on-investment of $8.71 or $5.61 per $1.00 spent.
Also, crm has been known to increase customer retention by 27%. That is a huge number. If you can increase your customer retention by 27% how much does that add to your bottom line?
You can use your crm for email marketing purposes (6 out of 10 small businesses are using their crm for this), which makes your processes more efficient.
You don’t have to use a different software for email marketing.
Being able to increase your revenue by 41% per sales person is outstanding.
Customer relationship management software can improve the customer experience and customer service of your small business.
In my opinion I feel this is a win-win for your business.
If you have not already I would strongly considering implementing a customer relationship management software in your business, like right now.
In addition to being able to do all of things we mentioned already, there are a couple of common sense points I went through in an earlier blog post on how crm software is beneficial.
Here is another way to look at acquiring customer relationship management software.
It’s an investment in your business. If you invest in your business it will continue to grow and prosper.
Another way to look at this purchase is that you can deduct the payment or payments of your customer relationship management software for tax purposes.
Essentially adding more to your bottom line as the amount Uncle Sam can tax you becomes less.
Which means you make more money.
Wait. What did you just say?
You can make more money if you purchase customer relationship management software for your business.
So, I would look into buying customer relationship management software for your business right now!
Customer relationship management software can improve customer retention and can add to your bottom line. So don’t waste anymore of your time and implement today!