In today’s competitive market, retaining customers is more challenging than ever. As clients get smarter and more demanding, it gets harder to meet their expectations. Therefore, businesses go above and beyond to provide a better customer experience than their competitors, win customers over, and keep them coming back. CRM software is the tool you need to achieve this goal. Not every company understands that CRM solutions not only help you organize daily tasks and improve customer relations, but they also increase your profits by cutting the overall costs for your business in a variety of ways. Read on to find out how CRM software can help reduce costs for your business.
What is CRM Software and How to Choose It?
CRM software is used to organize, streamline, and automate everyday business operations. It is a tool that helps you understand all your customers’ needs and requirements and develop a successful relationship with them.
Things to consider when making your choice:
- Before you start hunting for a new CRM solution, note that the features you need to help your business thrive vary from industry to industry. You need to understand the specific requirements and goals of your business and then make sure that your choice meets those goals;
- Determine which features are your priority and which ones are just nice to have and choose the product that best combines those two lists;
- Your employees need to feel comfortable using this software; therefore, the UX should be a priority during the selection process;
- Make sure your choice is able to work well with the existing applications;
- Your choice should be mobile-friendly, too
#1 CRM Reduces Production Costs
To cut your business’ production costs, you should know exactly what products are not selling and what products are in demand. CRM software is an analytics and accounting tool that enables you to manage products in the manufacturing stage or already in stock. Among other things, it helps you analyze which goods sell better than others.
With this information, you can optimize your production and invest in creating items that your customers want to buy. When you know what is selling fast, you will invest money in producing those items and not in something that will only add to your inventory, thus reducing production costs. Once your production becomes more optimized, dynamic, and cost-effective, you will not have a problem with excess goods taking over (expensive) space in your warehouse.
#2 CRM Reduces Costs of Acquiring New Customers
Although retaining existing clients is cheaper than attracting new ones, it is impossible to grow your business without new customers. Acquiring new leads is a long, expensive process. The costs of getting new customers include advertising and marketing campaigns, your employees’ salary, and various allowances.
A CRM system can indirectly help you gather new leads. With the help of CRM technology, the quality of your customer service will improve – and, as you know, word of mouth is still the best advertisement. If your customers are happy with your service, you’ll start getting new leads through referrals, cost-free. Moreover, with CRM, you can plan and create targeted campaigns for your audiences, thus generating high-quality leads.
#3 CRM Reduces Paper Costs and Helps the Environment
If you have three employees, you might use two paper packages per year, but if your business is much larger, paper costs are much higher. Sooner or later, most paper documents are thrown into the trash and later into the landfill.
With a CRM system in place, you can forget about storing data in print. Customers’ contact info, sales figures, revenue statistics, records, etc. are stored in a centralized location, which can be accessed via the internet at all times from anywhere in the world. From their name to their last purchase, all customer data is stored electronically and in one place. Everything you need is a single click away, and it can be accessed in real time. This means there is no need to use paper or ink, except for the most critical documents that must have a physical copy. Limiting paper purchases significantly reduces the overall cost of a business, not to mention how good this is for the environment.
#4 CRM Reduces the Expenses of Your Sales Representatives
Sales reps have to meet clients personally from time to time, which means they have to travel. The company normally pays for these trips, and they can be costly. CRM makes it possible to plan these meetings better and find the most convenient place to have them at a minimum distance for both sides. This way, you will reduce transportation costs and help the environment by reducing harmful emissions.
#5 CRM Software Saves Time
By automating the sales process of your organization, you are helping your sales team work more efficiently. From tracking prospects and arranging appointments to setting reminders, warming up new leads, and managing quotes and orders, every task will go more smoothly and take less time. This enables your team members to close sales deals more quickly. They can use the extra time for starting and closing new deals.
#6 CRM Reduces the Cost of Mistakes
Mistakes happen, and, although unintentional, they can lead to unnecessary expenses. The most common mistakes include mix-ups when products get sent to the wrong address. This leads to uncomfortable situations – you must send the product again and apologize to the customer. This is not only bad for your budget, but it also results in losing customers. With CRM software, the likelihood of human error is practically non-existent. The automated system itself guides customers through the sales funnel. Then, managers receive instant signals about the task they should perform, eliminating the possibility of making a costly mistake.