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What is CRM and How it Benefits your Business?

What is CRM or Customer Relationship Management?

CRM (Customer Relationship Management) allows your business to enhance your service and sales operations by sharing vital information throughout your company.

CRM is a beneficial system that focuses on enhancing relationships with current customers, attracting potential customers, and retaining existing customers. This software also enables you to collect, organise, and manage the information of the customers.

As per our experience, CRM can assist in retaining customers by 27% and helps in decreasing the marketing and sales cost by 23%. This indicates how much your business can benefit from CRM.

CRM data analysis

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Below are the benefits of Customer Relationship Management (CRM)

1. Better Customer Relations

One of the major advantages of utilising CRM in your business is that you obtain better customer relations. Through CRM, all the dealings including selling, marketing, and servicing your products to your customers can be done in a systematic and organised manner. You will be able to understand their problems and issues in a better way and provide appropriate solutions. This will help in enhancing the loyalty of your customers and decreasing the agitation of customers. You will also be able to attain regular feedback from your customers on your services and products.  

2. Enhancing Customer Revenues

Through utilising an effective CRM strategy, your business will experience a boost in its revenue. By collecting data with the help of CRM, you will be able to create marketing campaigns effectively. The CRM software will help you in reaching out to new and different set of customers. This will help in attracting customers and enhancing your customer revenue. According to a survey, CRM can increase revenue by 41% per sales person.

3. Maximising Cross Selling and Up Selling

Another benefit of a CRM system is that it enables up-selling, allowing you to provide customers premium products which come under similar categories as that of their purchase. It also allows cross selling through which you can offer complementary products or services to your customers as per their previous purchases. This can be achieved by engaging customers and determining their purchase patterns, their needs and wants. All the details are then stored in the central database which can be accessed by all authorised employees. When the right opportunity arises, your sales employees or executives can promote the service or product, thus maximising cross selling and up selling.

Related: 
6 of the Best Strategies to Ace Customer Engagement

4. Improved Internal Communication

CRM also results in enhanced communication within the organisation. Sharing of customers’ details between different departments will enable the employees and departments to work together as a team and move towards a single goal. As a result, this will increase the profitability of your company and improved service to your customers.

5. Optimised Marketing

Another benefit of CRM is that it will help you in determining the behaviour and needs of your customers, hence enabling you to come up with the right time to market your services and products. It will also provide you with details and ideas regarding most profitable customer base, and through that information, you will be able to target such groups. This will help you in optimising your marketing resources most effectively.

These are the top reasons why CRM is rapidly becoming essential to businesses of all sizes. As there is a continuous increase in the expectations of customers, businesses must start adopting new strategies and services like CRM to enhance customer support, increase sales and success of the business.