Posted by Indusa Admin on December 10, 2015 12:16 pm
According to MarketingWeek, CMOs are looking to spend more of their budget on customer retention than acquisition. This shift in focus is largely due to numerous studies that have demonstrated the power of returning customers. In fact, according to Forrester Research, it costs 5 times as much money to gain new customers as it does to keep current ones. When you compound that with research from Gartner that predicts that 80% of your company’s future revenue will come from just 20% of your existing customers, the importance of keeping your current customers happy truly comes to light. As a result, customer relationship management (CRM) software has become increasingly popular as a method of advertising and promotion.
CRM software has numerous uses, from monitoring sales calls and conversations, to promoting loyalty programs and discounts. A good CRM can provide the tools you need in order to maintain your customer base and keep them happy. Such tools include:
Monitoring social media is a crucial aspect of keeping your current customers happy – and it can affect how you gain future customers as well. If a disgruntled customer is tweeting negative things about your company, not only are you on the verge of losing a customer, but you’re driving away any potential customer that reads it. A study by Nielsen reported that 33% of users prefer contacting companies via social media, rather than by phone. By monitoring social channels, customer sentiment, and by driving engagement, you can use CRM software to supercharge your social presence and keep customers coming back for more.
Customer service is one of the most delicate and intricate aspects of retaining customers. Unresponsive or unhelpful service is a surefire way to lose customers. In fact, according to Forrester Research, 71% of consumers say that valuing their time is the most important thing a company can do to provide them with good service. Having a contemporary CRM solution can allow your employees to provide your customers with speedy service. You can automate routine service tasks in order to expedite the process, as well as driving actionable insights by taking full advantage of the analytical capabilities CRM software provides. These features will help improve your customer service efforts, reduce response times, and increase the number of satisfied customers.
CRM for Marketing
Using your CRM for marketing is a key aspect of customer retention. A study done by SoftwareAdvice found that 74% of respondents said their CRM offered improved access to customer data. With better access to data, businesses can make their marketing campaigns smarter and more effective. Your CRM software should give a 360° view of your customer – enabling organizations to enhance their sales and marketing efforts. By improving marketing efforts, you can more effectively target existing customers to inform them about relevant events or promotions. You can promote a new store opening by targeting existing customers in the local area or promote a new release of a product by reaching out to customers with similar purchases.
CRM for Sales
Improving marketing efforts with CRM software comes in conjunction with improving sales efforts. Capterra released a statistic last year stating that CRM software increases sales by up to 29%. When compounded with the previous statistic that 80% of your company’s future revenue will come from just 20% of your existing customers, the relationship between using CRM for sales and maintaining relationships with existing customers becomes even more apparent. By using CRM for sales, you can bolster your productivity and channel that energy into maintaining existing relationships with customers. These customers will not only continually drive sales to your organization, but they have the power to refer you to their networks – consequently becoming a powerful advocate for your organization.
When you combine all of these statistics into a big picture, one thing becomes unavoidably clear: using a CRM to maintain relationships with existing customers is crucial for business. Your CRM software should be able to provide valuable social, customer service, marketing, and sales functions that will better prepare you to interact with existing customer base. If you’re not already using CRM to keep in touch with existing customers, you’re most likely missing out on countless opportunities.
About the Author – Sarah Van Wambeke
Sarah is an avid writer and digital media enthusiast. Here at Indusa, she primarily focuses on content creation and social media management.