Clients are at the heart of any business. And small businesses are no exception. The people buying your products or services are the lifeblood of your daily operations.
Without them, you wouldn’t be able to grow your business, pay your staff, or have that much-deserved vacation.
Yet only 9 of 10 larger businesses use CRM software, while 1 in 3 small businesses do. (authorize.net)
Today, we’re going to bust the myth that CRM is only for big business and why you why CRM is important for small businesses and how the software can save you time and boost your bottom line without hiring more people or working longer hours.
Reasons Why CRM Is Important for Small Businesses
Here are some reasons why you need a CRM:
1. Client Management
With an overwhelming amount of information that we collect from our customers, small and big businesses know the importance of customer relationship management.
From telephone numbers and postal addresses to capturing their pain-points or issuing a return, a CRM can help you consolidate, organize and synchronize all that valuable data.
Gone are days where you have to keep track of things manually. You won’t need that stuffy filing cabinet anymore, and the stress of losing a customer’s file will be a distant memory.
Plus, your business doesn’t have to grind to a halt with John Doe calls in sick. One of the top benefits of CRM is that any one of your staff members can log in and use the client management system to access the file on that customer.
With a few clicks, you can see where they are in the sales cycle, their purchasing history, past conversations and data showing their buyer patterns and behaviours to help you fine-tune your marketing and sales strategy.
2. Profitability Tracking
A CRM isn’t only beneficial to your sales and marketing team. It can also ease up the workload on your financial department.
The software comes with a built-in bookkeeping system, which helps to pull accurate financial reports with a few clicks of a button.
The end result for your business?
Your accountants no longer need to spend time tracking every single cent coming in and out of the business. Plus repetitive tasks like shipping costs and product discounts can be automatically applied, giving your team space in their schedule to focus on more important tasks.
3. Increase profits
Does your team have a strong closing rate? Have you ever forgotten to follow up with a customer and lost a sale?
If you answered no to any of the above questions, or you’re not even sure what your stats are like, a CRM will be life changing to your business.
One of the major benefits of CRM is that you can use the software to pull reports and identify which phases of your sales process works and where customers are falling off. From there, you can weed out what isn’t working and turn more leads into paying customers.
A CRM system can help any potential sales from falling through the cracks. You can set up reminders for follow-ups or the automated email feature to send out a discount code for a client’s birthday.
The best part? No one has to be in the office to hit send and boost your profits.
4. Sales Strategy
Since the rise of digital marketing and online shopping, the only thing constant in any successful modern business is change. If you want to survive, you need to be able to adapt to innovation – and fast.
A CRM system keeps your ear to the ground and allows you to track trends and change your sales strategy as needed.
For example, if you own a business that sells decorations for holidays like Christmas and Halloween, you can use your CRM’s forecasting data to plan your marketing campaign and prepare for those dips and increases in sales.
You can also use the data your collecting to analyzing the type of customers you’re attracting. If you notice that the majority of your income is coming from women between the ages of 18-24, you can make more informed advertising decisions.
You may decide to invest more money on Pinterest Ads and change your demographic targeting on Facebook and Instagram.
5. Improve productivity
When it comes to running a business of any size, knowing what to focus on at the right moment is crucial to success. With a CRM system, you can drive deep into the analytics to prioritize the tasks of each team member.
In a survey conducted by Salesforce, businesses that switched to CRM’s were able to increase sales by 29% and productivity by 34%.
You can use your CRM software to identify which lead you need to nurture or to pull up contact information for a customer in seconds. CRM’s also allow you to automate a range of tasks, helping everyone remain focused on actions that bring in more sales.
6. Regulatory Compliance
One of the main reasons small business owners turn down using a CRM is because of the myth that it’s too expensive. However, most businesses that invest in one see an average ROI of $8.71 for every dollar spent. (nuclearesearch.com)
By using a CRM, the intuitive settings can perform regular checks on your business to make sure it’s compliant with federal and state laws as well as industry standards.
With only a few clicks, you can generate the relevant documentation you need, or set up an alert to flag a high-risk client.
Now you can use that budget you set aside for compliance analysts to pay for your CRM system or invest it back into your business to meet your business goals.
7. Customer Service Improvement
90% of millennials expect companies to respond to comments or DMs on social media within a day or less. 44% want an answer within an hour or less. (prnewswire.net)
With such a high demand for fast customer service, the importance of customer relationship management in your business is crucial for success. You need to make sure your team is able to stay on top of complaints and queries.
A CRM can take this a step further by analyzing the complaints. You can pull a report to see where and why you’re not performing well and make informed business decisions.
The Bottom Line
There are a range of useful tools to help you run your business, like marketing & lead generation tools, automation tools as well as useful spreadsheets. But if you aren’t managing and keeping track of customers, those tools won’t help you much.
Time is money. If it’s your goal to hit that 6-figure mark or triple your sales from the previous year, you need to upgrade how your business operates.
You can’t achieve your financial goals if you aren’t using your resources wisely and helping your team to work smarter, not harder.
Investing in a CRM is a full-proof way to increase sales and productivity, improve customer service and save money.