Published on: February 13, 2014
Your customers are the most important aspect to your business – without them, there is virtually no point in doing business. Effectively managing your relationships with your customers, therefore, should be one of your top priorities. You can’t expect your customers to stay loyal to your company without putting forth any effort; in order to increase loyalty, you have to create a reason for your customers to be loyal. By implementing key customer relationship management strategies and utilizing your customer relationship management software, you can revitalize your customer relationships.
The advantages of customer relationship management (CRM) software are endless: stronger customer relationships, increased sales team productivity, enhanced communication with customers, and reduced marketing and business costs. CRM software allows businesses to take the lead in the sales process, close more deals, and develop customer relationships that last. While the benefits of CRM are obvious, many companies are still hesitant to invest in CRM to manage their customer relationships. Many see it as an unnecessary cost and prefer to keep the customer relationship management process simpler.
The truth is, CRM software is worth every penny. The return on investment (ROI) of CRM software is significant; however, many companies do not know how to measure the software’s effectiveness. As a result, they feel as if the software is not worth the investment or that they won’t “get what they signed up for”. In order to see how CRM is actually impacting your customer relationship management, you have to know how to measure its effectiveness.
The following tips are designed to help you measure the effectiveness of your CRM solution so you can begin realizing the value it’s bringing to your customer relationship management process:
- Determine your customer acquisition costs.
CRM software gives companies the ability to cultivate old relationships while bringing in new customers. Customer data and information is stored in a central location so your employees have instant access to everything they need to know about a single customer. This enables them to take the right action and determine the best marketing strategy for winning over certain prospects. With all of this information simply a click away, you can begin customizing campaigns to win over old and new customers.If you don’t have to test marketing strategies to see if they work, you know your CRM tools are doing their job and achieving a high ROI.
- Examine how CRM tools are improving your revenue.
With CRM software, your interactions with your customers can be highly customized. In fact, a sure sign that your software is achieving a high ROI is if your sales numbers have increased after CRM deployment. If your customer relationships are lasting longer and your clients are making recommendations to their friends and colleagues, your CRM tools are definitely benefiting your business.
- Compare software costs to business revenue
Comparing the cost of your CRM software to the number of new clients you are bringing in every month is critical to measuring the effectiveness of your software. If your CRM setup costs are paid off quickly and your revenue numbers continue to climb after deployment, you know you are achieving the highest possible ROI. In fact, if your CRM solution is doing just that, you may even need to up your investment to accommodate for higher amounts of data.
Are you experiencing a high ROI from your CRM software? If not, consider giving Sage CRM a try. Sage CRM is designed to help businesses just like you build more profitable, lasting relationships with your customers. Contact one of our Sage CRM experts today to learn how it can impact your customer relationship management.