What are the most common tasks that you can perform with your CRM?
Firstly, don’t just use your CRM as a glorified contact book or spreadsheet, a CRM system is a versatile platform that empowers businesses to excel in multiple facets. Here we will delve into the top five most common tasks that you can perform with a CRM, along with practical examples that showcase their real-world impact.
1. Contact Management and the power of segmentation:
At its core, a CRM is designed to streamline and centralize customer data. Beyond basic contact information, it enables businesses to categorize contacts based on factors such as industry, location, sales value, product preferences and engagement history. This ensures efficient communication and personalized interactions. Firstly, you can make use of digital contact books by using this to send email-targeted campaigns. Granted you can also achieve the same thing on an email platform such as MailChimp, but a CRM can ensure that the targeting goes beyond email touchpoints, it can mix digital, traditional media, call centre and offline customer interactions.
Example: Imagine you are running a growing e-commerce company. With a CRM, the company can segment their contacts by profitability bands, so that you can know that a return customer is a big spender, by simply checking their sales history.
You can also segment by geography, you can send tailored messages to customers in a particular region. This segmentation facilitates tailored marketing campaigns, improving customer engagement and ultimately sales conversions. More sophisticated users can use customer segmentation to create a tailored experience on their website, direct marketing, contact centre or face-to-face customer conversations.
2. Lead and Sales Tracking:
Every customer that wants to buy from you might need a nudge to do so. CRM systems are invaluable for tracking leads throughout the sales pipeline. From initial contact to final purchase, every interaction is recorded, providing a comprehensive view of the customer journey. This aids in the identification of bottlenecks, poor-performing products or services. This information allows you to refine your sales strategies. You can make crucial interventions in the customer journey to persuade your customers to take action. A bottleneck, for example, could be a high price, it might be time to offer that discount if a customer is wavering on a purchasing decision.
Example: Consider you are a software company. They use a CRM to monitor leads, from the initial inquiry to the negotiation stage. By tracking touchpoints and responses, the company can fine-tune their sales pitch, resulting in a higher conversion rate. Customers that don’t initially buy, can continue to receive messages that can keep them as a warm lead over time.
3. Task Automation:
CRMs excel in automating routine tasks. From sending follow-up emails to scheduling appointments, automation reduces manual effort, allowing teams to focus on high-impact activities.
Example: A recruitment firm employs a CRM to automate appointment scheduling. When a lead expresses interest on their website, the CRM automatically sends available slots and books the appointment, ensuring prompt and hassle-free interactions. Anyone that has tried to book a meeting with a busy customer will know what a time-intensive task this can be.
Another example is that a CRM can integrate with electronic signature software to automate the creation of a standard contract. Again, if you have undergone the time-consuming contract negotiations via email (with multiple contract versions), you will be best placed to use a combination of a CRM and an E-Signature tool to save time. More sophisticated users can use further automation platforms such as Zappier to automate every workflow that you have in your business.
4. Customer Service Enhancement:
Let’s face it, no matter how great your business is at pleasing customers, you will have instances where you need to deal with complaints, calls or queries. CRMs store historical customer interactions, empowering service teams to provide personalized support and swift issue resolution. This is how a call centre can bring up details of the last time that a customer called your business, so that if it’s a different employee handling the query the customer does not have to repeat the same information again. We all know how frustrating this can be.
Example: A florist employs a CRM to manage customer complaints. When a client calls with an issue, the representative instantly accesses their history. This personalized assistance increases customer satisfaction and loyalty. The customer feels listened to and feels valued since there is a history of their interactions and purchases.
5. Analytics and Insights:
The businesses that use data to their advantage generally win! The data-rich environment of a CRM yields valuable insights. Analytics tools track customer behaviour, helping businesses understand trends, preferences, and pain points. This data drives informed decision-making.
Example: An online fashion retailer uses a CRM to analyze purchase patterns. By identifying which products are most popular during certain seasons, they optimize inventory management, reducing surplus stock.
The practical examples highlighted underscore how you can get tangible benefits from leveraging CRM systems. As businesses continue to evolve, embracing CRM technology becomes a strategic imperative, unlocking efficiency, profitability, and sustainable growth.
