What is CRM?
If this question is playing worms in your mind, you are not alone. The CRM software could be the most powerful sales tool in our day. Yet, only 18 percent of businesses use a CRM in their first year.
That’s just one in five businesses, which means others are switching between different tools, including sticky notes, email, and spreadsheets, to run their daily sales.
But the question is: Can they get the job done? Maybe.
Is there a better way to do this? Yup.
That’s where a CRM comes in.
Quantitative Benefits of a CRM
According to Baseline, the ROI on CRMs is approximately $5 for every dollar spent. Still, many businesses are missing out on the opportunity to enjoy CRM benefits, especially when you have simple and affordable solutions around.
But that’s probably a topic we’ll discuss in another blog.
For now, let’s look at what does CRM stand for and what it brings to the table.
CRM stands for customer relationship management and it refers to a program that let companies keep tabs on their existing as well as potential clients.
As far as CRM benefits are concerned, a survey found 47 percent users citing that the software has greatly impacted customer retention. An equal percentage stated the CRM considerably impacted customer satisfaction too.
The number-crunching doesn’t end here.
74 percent of the users said their CRM software has made data accessibility easier. Owing to the ease of data accessibility, sales cycle are shortened by 8-14 percent for salespeople. This clearly explains why 53 percent of top-performing businesses are adopting CRMs to drive sales productivity.
Woo! That’s a lot of data crunching, by the way. Let me catch my breath.
Qualitative Benefits of a CRM
Over the course of time, the tools of the sales businesses have evolved. Back in the 70s, Rolodex was the bible for salespeople. But it had an element of risk; any top performing sales rep can quietly walk out with their Rolodex and all the customer information.
When sales trade shifted to digital, companies started recording their crucial data in emails and spreadsheets. Of course, emails and spreadsheets changed the way we do sales today—no disagreement here. But, they are certainly not meant for managing relationships with your clients.
For instance, when you need instant access to contacts or need to figure out where exactly a relationship left off, you can’t afford to dig through your messy inbox or spreadsheets.
In this situation, a CRM solution can prove handy because it is built for one thing—your sales team. This is what makes it the best tool to build lasting relationships with your clients. Today, you’ll have different vendors selling different customer relationship management software—and some of them are very affordable—but three CRM benefits are constant when you are looking to pick one:
- One stack of tools: The CRM software should be simple, easy-to-use, have email integration, notes, web form builder to land leads directly from your web while you sleep, proposal builder and more such as Funnel CRM.
- Up-to-the-minute view of entire sales funnel: It should allow you to instantly view your entire sales pipeline on a clean and visual dashboard. All your deals aligned in a chronological order so you can sort them by name, owner, amount or stage in a fraction of the time.
- Automates the tasks sales team hate: It should have the capability to automate the hazardous manual tasks. because admin tasks take much longer to complete which greatly deteriorates salespeople’s productivity.
It can certainly help your business speed up its sales team that is spending less than 36 percent of their time selling. With the rest of their time is spent on boring tasks like data entry, figuring out if a lead is still hot or not, and sending the same emails over and over again.
But unlike Rolodex, customer relationship management software has evolved. In the present day, most CRMs exist in the cloud which allows you to access them from anywhere at any time. That’s why salespeople are in love with modern day CRMs. As per salesmate’s analysis, 81 percent users said they use various type of devices to access their CRM.
How much Should you Invest in CRM?
Well, it depends on the size of your sales force, type of your business, and what you want to derive from the CRM. All these factors will allow you to sort and choose the right CRM solution.
Tip: Don’t buy a monthly or annual plan right away. Instead, sign up for a Free trial and see if the solution is the right fit for you and your sales team as many including Funnel CRM offer a fully featured trial that will allow you to try before you buy.
Irrespective of whether you are a free trial user or a paying customer, moving from email or spreadsheets to a CRM is a win because it’ll 10x your sales and productivity. Most importantly, unlike Rolodex, CRM is not destined for obsolescence, at least not until 2025.