7 Ways A Good CRM System Can Increase Profit For A company

Did you know 55% of customers are ready to pay more to get better customer service?

The industry is buzzing with this short three letter acronym – CRM. It stands for customer relationship management. It has the ability to disrupt the sales and marketing market globally,

The customer is the soul of any business. But it is how a company manages its customer database that makes all the difference. The R of CRM—relationship—determines the success and future of any business. CRM is essentially the art of managing relationships with its customers.

Today, companies are rapidly adopting CRM software or Process mapping software  to scour databases to find new prospects. They also use it to retain existing customers for vital data. Furthermore, CRM analyses this data and improves the targeted marketing strategy. 

This will, in turn, improve customer experience. Thus, CRM helps increase their revenue and cut operational costs. So, isn’t it safe to say that CRM is a vital asset, not just for your sales team, but for your entire enterprise? 

Here are seven ways a business owner can use a CRM system to increase the company’s profit.

1. Use CRM to Offer Personalization

A good customer experience is as essential as the quality of your products. If your customers realize their opinion matters and feel cared for, they are more likely to become loyal to your brand.

A Salesforce survey discovered that 8 out of 10 customers rank consumer experience as important as products and services. That’s not all. A recent joint study by Salesforce-Harvard revealed that 82% of retailers think improving the customer experience is their priority.

An easy to use CRM tool can share actionable insights about each customer to your sales, marketing, finance, and production team. You can use this data to create a personalized customer experience.

2. A Connected Enterprise = Better Flow of Customer Insight

Integration works wonders for any enterprise if used correctly. Integrating your CRM software with other business applications allows every department to view and transfer mission-critical customer-related data.

The benefit of such integration is multifold. It allows you to automate order processing, connect inventory with sales, optimize production, create customer-friendly marketing campaigns, and identify the most profitable business areas.

This reduces internal manual processes. It also allows better flow of information and increases efficiency and productivity. This, in turn, skyrockets your profitability.

3. Reduce Sales Cost

The book ‘Marketing Metrics’ discovered that the probability of selling a product to a new potential client is 5-20%. At the same time, the chances are 60-70% if you sell to your existing customer.

A company’s growth depends on acquiring new customers. However, it is neither easy nor cheap to come by. So, it is important to continue making a profit by selling to existing clients to compensate for the cost of new customer acquisition.

Simple CRM tools can also improve business performance by:

• Improving sales efficiency. It helps departments focus on leads that are most likely to convert into customers.

• Boosting sales effectiveness by identifying customers who like to interact more. It is also important to find the best time to engage with them to get optimal sales.

• Identifying the right opportunity and customer to push for add-on services.

• Reduce turnaround time to close a sale by aligning your team as soon as you have an eagle’s eye view of the customer.

The interactive dashboard of a CRM solution offers a better view of the company’s positioning with its customers. It makes it much easier for everyone to track, manage, and organize leads all in one place.

Gain 360-Degree Visibility Over Sales Pipeline

Simple CRM software offers better visibility of customers’ journeys by answering the following questions:

• How long a prospect stays in the sales funnel?

• Which services and products are making more profit?

• What makes customers and prospects drop out before completing a purchase?

• Are your sales team meeting their targets?

• Which campaigns are working, and which are not?

Insights collected from these answers can help companies adjust their sales and marketing efforts and update products and solutions.

Also, Check – 3 Smart Tips to Make Your Hiring Process Successful

5. Use AI/ML To Predict Buying Behaviors

Artificial Intelligence (AI), Machine Learning (ML), and natural language processing (NLP) are game-changers for every market and industry. The global CRM industry, too, has been heavily influenced by these technologies.

According to a Salesforce report, marketers, who have integrated their CRM system with AI alone, have seen 190% growth in 2018-20.

All businesses now use new tech tools, and people spend most of their time online. Imagine the large volume of data we produce each second! AI can help translate these raw data into actionable insight in a short time.

By leveraging AI’s analytics and ML’s ability to predict, CRM systems can identify marketing trends and opportunities to improve sales and support for a brand. Thus, marketers can predict and understand customers’ buying behavior with AI and ML.

6. Improve Your Customer Retention

The mission-critical data provided by advanced CRM systems help in predicting at-risk customers. Thus, enterprises can proactively take necessary steps to keep those customers and make them happy. Customers’ perception of your brand improves immensely if they feel valued and cherished.

Did you know a 5% drop in customer attrition can boost your profit by 25-85%?

Offer them a reward for being loyal customers. Maintain transparency in your active marketing campaign and provide the most satisfying buying experience. This will increase your customer retention rate.

7. Use CRM to Get Referral

When your customers are happy with your brand, they become loyal to you. You can follow up with them for referrals. You can offer them incentives for a successful referral.

Alternatively, you can use CRM tools to track the channels that prospects are using to reach you. Once you trace back the correct channels, you can use the information to improvise your marketing and referral programs.

Key Takeaway

A customer is not just your funnel to increase sales. You can have extraordinary products and services and attractive deals, but if you do not treat your customers right, nothing will sell. And you’d be at risk of increasing your customer defection rate.

Therefore, every business should maintain a good and sustainable relationship with its customers. This is what simple CRM software does best. It helps you establish and maintain good relationships with customers. Train your teams to take advantage of this incredible tool to increase your profit.