Sales Force Marketing - Salesforce.com CRM:
Why Small and Medium Sized Businesses Need a Customer Relationship Management (CRM) System

Unemployment is up. Spending is down. The global recession is real and your small or medium-sized business is more than likely experiencing some difficulties. Now is a good time to re-evaluate your business processes to be sure you are doing all you can to maximize the relationships with current customers and attract new business.

Customer Relationship Management (CRM) systems are used by most large corporations to this end. A CRM system is essentially a central database storing customer interactions. The system is accessible throughout the company by all appropriate personnel, including sales, customer service and support teams.

CRM Systems provide many Advantages.

For new customer acquisition, the CRM system will track each lead throughout the entire sales process. Each contact with the potential customer is logged and any acquired intelligence can be shared with the entire organization. Specific requirements and preferences can be noted, along with information about the customers' internal purchasing and approval practices. Over a period of time, trends can be identified and contact-to-closing times can be reduced.

Here's an example of how a small commercial nursery / landscape design company might utilize a CRM system. The nursery prepares bids for a number of apartment complexes and schools.
By tracking each step in the sales process, the nursery owner quickly realizes that the apartment complexes make decisions quickly, while a school has a longer sales cycle. The nursery owner may determine that it makes more sense to focus her sales efforts on apartment developments. Over a period of time, the nursery owner analyzes customer information using the CRM system. She is surprised to see that a number of restaurants have placed orders recently. With this information, she can develop an advertising campaign geared specifically to restaurants, and capture a new market segment.

Once a customer is active, the CRM system continues to add value. Inside sales teams can review past purchases and identify new opportunities to up sell and cross sell to existing customers. In the case of our nursery example, the sales team can identify everyone who purchased sod or grass seed in the spring. These customers will likely be in need of lawn cutting services and fertilizer in the future.

The CRM database is invaluable for promoting excellent customer relations. Prior to each customer contact, that customers' history can be reviewed. Past purchases are detailed. Any service issues and payment problems are identified. Sales and service representatives can always call the customer by name, will never be blind-sided by a problem and can identify new sales potential. Each member of the team can understand each customer's unique needs and potential.

In our nursery example, a sales representative uses the CRM system to review a specific school account. He can see that sod was laid for the school in the spring. He will also see that a number of trees sold to the school at that time were infected with a blight. The database reflects that the nursery treated the trees within 24 hours of the problem being reported, and the customer was satisfied. When the representative calls the school to pitch fall lawn treatments, he can first inquire about the trees. The school's maintenance supervisor will appreciate the sales representative's thorough knowledge of the account.

Communicating with customers can be much more effective when using a CRM system. Messages can be tailored to specific segments, helping to reduce costs.

Some CRM systems include 'self-service' interfaces for customer convenience. Customers can securely log in to the system to place orders, make payments, report problems, and request assistance. Important notices can be published on the interface. Customers may also have the ability to access knowledge bases to learn about new products, view troubleshooting tips, and even read periodic newsletters. Particular features depend upon the CRM's features and implementation. Many customers appreciate an alternate method of communication.
These and other benefits of CRM systems have made them standard equipment for the enterprise for years. The new revenue opportunities and tangible cost savings identified by proper use of the CRM system far outweighs the expenditure required to purchase, install and maintain the software and hardware.

For the small and medium-sized business (SMB), the benefits realized versus the cost of implementing a CRM solution have not always been compelling. But today, as a hosted application, CRM systems are accessible to the SMB in a model that makes sense.

In a hosted environment, a CRM system is available online, 24 x 7 x 365. The SMB can choose exactly what features they need and subscribe only to those services. The business can access their database from any Internet connection, given specific security considerations. Call center representatives, retail store representatives, field sales staff and an executive in her home office can all access the CRM system from different locations simultaneously. The entire business team can effectively and efficiently share knowledge between offices worldwide.

Businesses generally purchase licenses or subscriptions to use an online CRM system. These subscriptions are frequently based upon hours or numbers of users. This model is surprisingly affordable and more realistic for the SMB than purchasing or building an in-house CRM solution.

With an online CRM system, small and mid-sized businesses can better serve and understand their customers, resulting in improved communications, higher customer satisfaction, and enhanced revenues.

Source: Tim Grosvenor link


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