Customer Relationship Management (CRM) important for SMBs
Customer relationship management (CRM) can be defined as the practices, strategies and technologies used by the companies organize and evaluate customer interactions and data with the objective of improving the business relationships with the customers. The CRM system gathers all the valuable information from different channels like company’s website, marketing material, social media, direct emails and many others. Along with this the CRM system also provides the customers with their personal information, purchase history, buying preferences and concerns. The CRM solutions provide the organizations with customer business data which enables them to provide better products and services to them. It also provides strength to the small and medium sized businesses to tackle operational challenges, which incorporates declining sales, high client attrition and misalignment between corporate revenue targets.
CRM Technology Market
CRM is gaining a lot of popularity these days, and the market is also flooded with a lot of vendors. The vendors provide various CRM solutions to lure the organisations. However, the four top players in the CRM market are Microsoft, SAP, Salesforce.com and Oracle. They offer various useful CRM solutions to the organisations that help them to improve their relationships with the customers
The CRM solutions are designed to fulfil various important tasks at the organisations. They perform tasks like administration, security and maintenance of database of complete information for the company. One of the most popular CRM solutions is the cloud based one which is also known as SaaS (software-as-a-service). If the company goes for the deployment of this solution, then the data will be stored on the external network and will enable the employees to access it from anywhere they want. A lot of companies opt for this service as it easy to use and handle and involves limited technological knowledge. The companies often go for the cloud based CRM solution as it turns out to be one of the most cost effective options. The solution vendors like Salesforce.com provide the solution on a subscription basis be it monthly or annually.
There is no doubt that the cloud-based CRM solutions is an easy to use and involves minimum cost. However, one of the major threats to the solution is data security as the organisations have no physical control over the storage and maintenance of data. If the firm providing the solution shuts down its services then, the user company will have to face the problem of data loss. Along with this, the organisation might also face compatibility issues at the time of migrating the data from the company’s system to the cloud.
On the other hand, the companies can also consider the open-source CRM programs. In these programs the source-code is made available to the public, which enable the companies to make changes without any cost of employment. The open-source CRM system also permits customization and addition of data links to the social media channels which will result in improved social CRM practices. SugarCRM is one of the vendors that is gaining popularity in the open source market segment.
But, deployment of any of the CRM solution entirely depends on the needs and requirements of the organisations. Along with this, the budget assigned is also an important criterion which influences the decision of installing the correct CRM solution.
Importance of CRM for SMBs and MSMEs
CRM is evolving as an important feature for the organisations. The companies are focusing a lot on the CRM solutions as they enhance the growth of the company. Still many of the organisations face the dilemma of whether in going for the CRM solutions. We give you five reasons as to why CRM solutions play a crucial role for small and medium size businesses.
1. Client Management
The organisation can use the CRM solutions to maintain the database of their clients, long-term profitability and make better plans that will allow the staff to begin new operations. For instance, if an organisation deploys the CRM solutions and has 80 percent customers in the pharmaceutical sector then the firm can recruit a salesperson with a medical or pharmacological background, or implement a training program to accelerate your sales staff’s awareness of the pharmaceutical industry.
2. Profitability tracking
It is very important for an organisation to keep a track of its profitability as it will further lead to an expansion in business. This solution will help your accountant in tracking the revenue and also focus on other things like product discounts, client returns, shipping costs and others. It will enable the SMBs with a fast bookkeeping system and precise financial reporting. The proper accounting will lead to growth in sales and will also help the company to run efficient operations.
- Regulatory Compliance
A good client policy will allow the small and medium size business owner to mechanise the business processes which were done manually earlier. This approach will help the companies obey the laws and follow all the standards set by the industry. For instance, the company now don’t have to hire any team of analyst in order to conduct regulatory checks as now they can be performed with the help of the CRM solutions. One just has to enter the correct settings, and the rest will be done without any hassle.
- Sales Strategy
Devising the correct sales strategy is one of the most important tasks. The small and medium sized business owners would not like to waste their capital by targeting the wrong customer. The CRM program is designed to provide you with correct and intelligent long-term sales trends. This will enable you to adjust the trending corporate sales strategy and achieve desired results. You will be able to understand and analyse that in what all segments you are generating maximum revenues and will be able to focus on them.
- Customer service experience
CRM helps to organisation to understand its customers better. A CRM solution allows the company to enhance its customer service practices and also teaches the employees to resolve the queries of the clients in a better and secure manner. The employer will be able to study with the help of the solution that in which area the company is lagging behind in solving the customer problems and can focus on that part in a better manner.
Future of CRM
Over a period, we have seen immense growth in the CRM sector. Many of the big brands are endorsing the CRM solutions. It will not be incorrect to say that CRM holds a very bring future ahead. In the time to come, the solution will be deeply integrated with an organisation as part of its business strategy. According to the research and analyst firm Gartner, the cloud based CRM deployments accounts to 40 percent and will reach 50 percent by 2015. Gartner also believes that CRM technologies will become a major driving force in the digital initiative and will lead the customer experience to another level. Segments like mobile, social media, mobile, big data, cloud and internet of things will turn out to be the main motivators of the CRM solutions.