Why is CRM so important for SMEs? Surely it is a tool for large organisations with masses of Big Data on their thousands of clients. This once was the case, but as discussed in this article if an SME wishes to grow and be profitable, managing customer relations is essential and here are five reasons why:-
Customer retention
It’s common knowledge that it costs more than six times to generate business than to acquire new business. New business takes up valuable resources but also drains from the core focus of organic growth. In fact, the Pareto principle states that 80 percent of sales comes from 20 per cent of existing clients. By harnessing tailored and affordable CRM, SMEs now more than ever have the power to track, respond to, and even pre-determine customer needs and demands across multiple devices right from first contact and through the full business lifecycle. Put simply, it means that the dream of nurturing deep customer insights, long term profitable relationships together with delivering a world class customer service, is definitely no longer the preserve of the big boys.
Increased productivity
In today’s cut-throat marketplace, having the correct responsive tools available on the latest devices to drive competitive edge is a key cornerstone of every savvy entrepreneur. It is no longer enough to be armed with paper, pens, telephone and spreadsheets in order to conduct effective business. Today’s customers interact via social media, through multiple devices, mobile apps, online products, globally, and on a 24/7 basis. It’s a fact that companies with CRM for SMEs generated up to 260 higher revenues than companies without. With these type of results, it’s a clear case of heightened productivity and profits through CRM for SMEs created in a world where customers are looking to align with star products and star performing brands.
Increased sales
Sales: it’s what business is all about. A reliable and sized-to-fit database which holds all the right information about various target customers also acts as enabler for increased sales because of the speed and depth at which quality customer interactions and sales can be made at. It will also reveal the quality of campaigns issued across different devices and touchpoints. Today’s SMEs have the opportunity to position their offerings more strategically and gain sales with affordable CRM software specifically designed with their needs and goals in mind, and equally with their cross-section of customers in mind.
Higher return on marketing investment
Many SMEs still baulk at the thought of investing heavily in marketing. And with an eye on the deepening recession they simply aren’t convinced of the smartest methods to effectively go about it. Trade show, ebook, brochure, point of sale, mobile coupon, event, social media, website, database, email or personal selling? All channels, or no channels? Regular discount offerings or full offerings with a blend of bolt-on sweeteners? Besides it all sounds laborious and time consuming. Yet as Bill Gates once said, marketing and PR is where he would spend his last dollar. A converged CRM database created for any size SME handles all the demands of modern marketing. This includes automating, tracking and reporting on customer trends, as well as representing campaign successes so that future marketing can be maximised to its full potential whatever the scale or size of business.
Low total cost of ownership via Cloud
What company these days isn’t operating in the Cloud. It offers convenience, a free-to-affordable approach to customer management, and can be directly integrated into e-ecommerce. SMEs which struggle with containing all their data in different formats and on disparate systems can easily migrate all their information into the cloud for an all-inclusive experience whilst retaining peace of mind and trusting in high performing outcomes. What’s more by storing and accessing everything in the cloud means the overall costs shrink giving them additional spending power to focus on better marketing and improved growth opportunities. Those SMEs which are already using the cloud testify to loving it precisely due to the freedom, affordability and ease it deliveres.
It’s now time for every SME to embrace the concept and reap the gains.