In today’s climate, it may be that customer relations are more important than ever. Any business that has managed to steer successfully through the last two years, will be looking for any way to improve its outlook.
It is clear then, that you should never underestimate the importance of customer support for your business. Indeed, it could be that whatever systems you have in place for customer relations are lacking in today’s business world.
One solution for this area is a CRM. What exactly is a CRM, and in what ways would it benefit your company if you employed one?
What is a CRM, or a customer management relationship system?
Before you can understand whether your business would benefit from a CRM, it is important to understand exactly what they are.
Essentially, customer relationship management is a reference point to the methods used to handle a business’s customers. This refers to all current customers and potential future ones also.
CRM can also be a software solution that enables a business to put in place the best practices and strategies for managing interactions with customers. It is all to do with predicting and reacting to customer needs and creating a long-term relationship.
Are many businesses employing CRM?
The employment of CRM in the business world is one of extreme growth. Not only is the methodology and practices behind CRM being used more today, but the software related to it is also.
According to the statistics website Statista, the CRM software market will be worth around $116 billion in 2026. This may be directly linked to the huge growth in ecommerce, and the pandemic.
In 2024, the CRM software sector was worth less than $10 billion, but this was projected to increase to over $64 billion by the end of 2024.
Why would your company need one?
It is said that any business that sells products, or services, should have in place a customer relationship management system. This is perhaps even more true with ecommerce businesses.
If you are selling goods online then you will already be aware of how to improve your sales using technology. A CRM can further this.
CRMs are largely concerned with two areas of a business; sales and customer service. The data from the sales department can work together with customer services to create long-term relationships.
This is important today as no business can afford to be short-sighted when it comes to maintaining customer relations. A CRM software solution can help in the following areas:
- Improve visibility in the salesforce
- Manage customer data effectively
- Speed up reporting
- Improve customer service and support
- Speed up lead response time
- Make your business more scalable
- Worthwhile ROI
Does this mean that all businesses use a CRM?
There is research in place that shows that over 90% of companies that employ a minimum of around a dozen people have a CRM in place. This is used to help manage all the interactions with customers.
And, there is a good reason for this. The return on investment, or ROI, points towards CRM software as a necessity in modern business.
Studies abound on the internet, and figures differ. However, there are many studies on the ROI of CRM software. Investment in CRM can be time-consuming, and costly, depending on the size of the budget. Yet, the ROI can prove very worthwhile.
Seven years ago, it was believed by some industry experts, including Nucleus Research, that the average ROI on a CRM system was close to $9 per $1 spent. In 2024, some industry researchers believe this could be over $30 per $1 invested in CRM.
Ninety percent of businesses with over 10 employees point to wide-scale take-up of CRM. Still, though, not everyone knows how to implement these systems, nor how to use them. Despite its purpose, nearly a quarter of salespeople don’t even know what a CRM is.
So, how do you implement a CRM?
If you feel your company could use a system such as this, then you need to know how to choose a CRM system. A CRM consultant from bigbang360.com can help in this area, as there are a fair few factors to consider.
Firstly, you will need to consider what your needs and requirements are. There is a multitude of CRM systems on the market, and selecting a suitable one will take some thought.
You will also need to consider how a CRM will fit with your current systems, work methods, and of course your hardware.
Then there is scalability, ease-of-use, training, support, cost, and accessibility to consider. This is why many firms who understand the importance of a CRM, will employ the use of a consultant to help devise an implementation strategy.
Examples of CRM being used in business today?
Looking at the size of the CRM software sector it is clear that there are millions of companies utilizing these systems. When you look closer, the roll call of businesses who see the importance of CRM is even more impressive.
Activision is one firm you may remember from the past if you enjoyed video games. They are still a big player with a market capitalization of over $70 billion. They also use CRM software.
However, Activision pales into comparison compared to some of the truly big hitters. Coca-Cola, Amazon, Tesco, and Apple, along with Wells Fargo, all use CRM.
This may lead you to the question of whether businesses of this magnitude buy CRM software off the shelf.
Can you customize CRM software?
Turnkey and custom CRM systems are available to fit different business needs. It may be that a consultant can find a system that fits your business model, or they may recommend some changes.
Of course, custom CRMs will cost more than a turnkey solution. Perhaps another reason to use a consultant to fully realize your CRM strategy.
Summary
Nowadays, businesses are appreciating the customer lifetime value more. Repeat custom and loyalty are worth more than a quick sale. Developing these prosperous relationships takes careful management.
Using CRM methodology, and software solutions could help your business to develop lifelong, and very profitable, relations with your customers. If you want to expand your knowledge you can read more about this topic.
