4 Ways CRM Software Could Benefit Your Business

Businesses today struggle with challenges such as segmentation, data organization, regulation compliance and lead management. The use of CRM (Customer Relationship Management) software has become increasingly popular among businesses due to its ability to solve these challenges.

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Features of CRM

Centralised Database

In a traditional database system, data is stored in multiple files across multiple devices. For example, in a global company each customer’s data might be stored in separate servers in each country, leading to a decentralised database where country databases do not interact with each other.

A decentralised database causes data inconsistencies, which often leads to data silos – a collection of data held by one group that is not easily or fully accessible by other groups in the same organization. Moreover, inconsistent data from siloes might overlap could cause difficulty in handovers, leading to friction across departments.

Cloud-based CRM overcomes this issue as the data is stored in one server that is accessible by the users as long as they have an internet connection. This allows users to work on the same data at the same time. This leads to:

Reduced costs – Maintaining a central server is less costly compared to multiple servers. It also minimizes the overall space requirements for storing and processing data.
Operational Efficiency – By eliminating the manual processing of data, data that’s controlled by one business unit can now be redirected to core business needs.
Data Security – A business’ data will be secured and is only accessible by users that were given access via a tightly controlled process.

Customer Segmentation

CRM software help businesses understand their customer preferences’ through data collection and analysis. Segmentation assists in the personalisation of marketing strategies, maximising the value of each customer to their business.

Not only does it improve the customer’s experience and satisfaction, it saves the business resources without the need to contact each customer separately.

Why Is Segmentation Important?

Segmentation is important in optimising a business’ marketing strategy, which maximizes the value of a customer while simultaneously improving their experience and satisfaction.

It is important for a business to understand their target base for their brand message to be delivered in an effective manner.

How Does CRM Help In Segmentation?

CRM software integrates data from various sources to build comprehensive customer profiles and categorizes them based on activities like eBook downloads, blog visits, and newsletter signups.

This enhances data organization and analytical capabilities, enabling businesses to create targeted marketing campaigns for specific customer segments.

For example, a fitness apparel company would launch a text message promotion on workout gear specifically tailored for younger customers who have made purchases previously.

Scalability

Managing customer data and processes become complex due to the competitive growth of businesses. A scalable CRM is able to handle increasing volumes of data, users and processes without compromising performance, functionality, or security.

Furthermore, a CRM can help businesses identify opportunities for growth and optimized operations by:

Efficient Sales Processes – By providing tools for lead tracking, opportunity management, and sales forecasting; CRM software enable businesses to manage their sales processes more efficiently.
Better Customer Service – Facilitating better customer service through a centralized platform for managing customer service leads to improved customer satisfaction and retention.
Improved Organization – CRM software helps businesses streamline the process of compiling and accessing information on clients, thus improving overall organization.
Increased Revenue – CRM systems help businesses increase their revenue by enabling them to identify cross-selling and upselling opportunities.

Regulation

The BFSI, government, and healthcare industries are obligated to adhere to data privacy regulations due to the sensitive nature of their information and the potential risk of security breaches. This could result in financial or identity theft, as well as the risk of ransomware attacks that may render citizen services inoperable and compromise patient care within each sector, respectively.

Even in less-regulated industries, a rising trend towards better data protection is driven by consumer expectations and internal standards. Regardless of regulation levels, recognize the importance of investing in a strong data security and compliance to meet consumer expectations and internal standards.

How does CRM help with regulation?

CRM software assists businesses in regulation compliance by helping them manage customer data, maintaining records of interaction, and implementing data governance practices. Other ways CRM can help with regulation compliance include:

Comprehensive Auditing and Reporting – By providing tools such as usage review, data quality assessment, and data governance review, CRM software help businesses audit customer data collected in accordance with GDPR requirements.
Compliance with Specific Regulations – Providing businesses with consent management features enables customers to give or withdraw their consent from receiving marketing communications, aiding businesses in GDPR compliance.
Data Security – Implementing security measures such as encryption, secure storage, and access controls helps businesses adhere to GDPR, ensuring that they only retain data for the lawful basis of collecting and processing personal information.

Consequences of Non-Compliance to Data Privacy Regulations

Non-compliance with data privacy regulations can lead to several consequences, including:

Reputational Damage – An organization’s reputation is harmed due to non-compliance. This could lead to a loss of revenue as potential customers, partners and investors may be reluctant to engage with a business that has compromised its data security.
Legal Repercussions – Legal actions can present a costly challenge to businesses, as financial penalties can negatively impact both their financial stability and reputation.
Breaches and Cyberattacks – Businesses may struggle to protect their data from potential breaches and cyberattacks, disrupting their operations. This could lead to a temporary pause or limitation of certain activities until they achieve regulatory compliance.

Considerations of CRM

When implementing a CRM software into your business, the key considerations to take into account are:

User Adoption: If the system is complex or not intuitive, it may be a challenge to employees. Training programs and ongoing support can help ensure successful user adoption.
Data Quality and Migration: Clean and organize your existing data before migrating it to the new CRM system. Ensure that data is accurate, up-to-date, and relevance to avoid data integrity issues.
Integration with Existing Systems: Evaluate the compatibility and integration capabilities of the CRM system with your existing software and systems (e.g., marketing automation, ERP). Seamless integration can improve efficiency and provide a more holistic view of customer interactions.
Cloud-based vs On-premise CRM: While both serve as a software that manages customer relationships, they each have their own unique characteristics. Click here to learn more about Cloud-based vs On-premise CRM.

Conclusion

In conclusion, the implementation of CRM software addresses critical challenges faced by businesses today. Including features such as a centralized database, customer segmentation, and scalability, contributes to enhanced operational efficiency, improved customer experiences, and increased revenue.

Investing in a well-implemented CRM system isn’t just about software; it’s about unlocking untapped potential, propelling revenue growth, and fostering lasting customer relationships.