Taking a risk is necessary when great returns are needed. Sometimes, just a little investment can prove very fruitful for a business. Businesses hoping to improve their performance often end up investing in a CRM software. Small businesses can particularly utilize a small business sales CRM software to boost their sales. It is, however, important to ascertain whether the business needs to make to make such an investment or not.
As a business progresses, it might realize that Excel isn’t enough to fulfill its diverse needs. On the other hand, pipeline CRM software essentially makes it easier for businesses to oversee and direct future sales. Whether it be effective workflow automation or tracking and reporting, CRM software does it all. This makes it a logical step in the overarching strategy of business to adopt CRM.
With a compound annual growth rate of 15.1% between 2012 and 2017, CRM software is highly relevant. Managing leads and customers become significantly easier with such software. Various factors are considered when deciding whether one should invest in a CRM software or not. It is in the best interests of a company to look out for signs that confirm the need for CRM.
1. Ineffective Data Management
When the data is ineffectively managed, or there is no centralized database, data is often lost or scattered. This makes it difficult to analyze the data properly. Businesses without CRM software rely on a combination of emails, spreadsheets and miscellaneous documents to keep data organized. If your business currently uses Excel to organize important information, it might find itself unable to see the whole picture. Moreover, a misplaced document or spreadsheet could significantly compromise the data management. The more incomplete or missing information there is, the harder it is to manage customer relationships effectively.
A CRM software enables employees who face customers directly to feed important data on the same platform. Once the data is stored through the software, it can be accessed easily by other employees too. This significantly improves internal communications and makes it easier to analyze the data. Even understanding a customer’s history is no big deal thanks to the effective collection of data in one place.
When you notice ineffective data management in your business, you should consider investing in a CRM software.
2. Unable to reach the sales targets
When a company sets unrealistic sales targets, it is bound to fail. A common approach adopted by businesses is to use last year’s sales figures with a percentage added to it. Another approach could include using the data from multiple sources to set a target. Regardless of whichever approach you choose from the two, the results are usually disappointing.
A CRM software would allow you to see the complete picture easily allowing better analysis. There is no denying how CRM software helps track sales in a better fashion. More effective data management is a key feature of CRM software. With the data available in an organized manner, businesses can create accurate sales forecasts. Through them, businesses are better able to set achievable sales targets.
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3. Unable to convert leads
When a business is unable to convert leads, there is a chance it isn’t functioning in the best way possible. This could be due to ineffective data management or a lack of understanding about the customer. Maybe the sales representatives are using different methodologies to convert leads. Some methodologies work, while some might not be as effective. There might be some specific actions that work best for your business.
With a closer eye out on leads, there is a better chance to convert leads into sales. A CRM software will help your business better understand what the most effective way to do so is. Through a better understanding of what works, you can make sure all sales representatives follow the best practices. Moreover, using the CRM software makes it easier to use past successes to generate and nurture new leads.
Converting leads isn’t as hard as it might seem, especially if you have a CRM software.
4. Low Customer Satisfaction
A staggering 89% of businesses compete on the quality of customer experience they are able to deliver. When a business is unable to satisfy customers, it is losing out on its ability to grow. Moreover, low customer satisfaction may open an opportunity for competitors to take your customers. The lower customer satisfaction is a direct result of being unable to understand the customer journey comprehensively.
Without a CRM software, it is harder to understand a customer’s journey. The scattered data and stream of emails is too much to follow. With CRM software, employees can get a 360-degree view of customers. Other than that CRM also enables businesses to take a more focused approach on customer experience management.
5. Issues in Internal Communication
When the critical data related to customers are present on different channels with different employees, effective communication becomes difficult. Since such critical information might reach the right parties after a delay, the response would be delayed as a result. These issues in internal communication arise due to a lack of a central platform where data can be shared and accessed remotely by relevant parties.
CRM software solves this issue by allowing employees who directly face the customers to upload data on a centralized database. With a single channel where relevant data is communicated, a CRM software significantly improves the quality of internal communication. The centralized database can show what went wrong with a certain lead or opportunity. Hence accountability can also be improved among employees through the use of such a database.
If internal communication is an issue for your business, a CRM software is needed right away.
6. Scalability Issues
When a business grows, the number of employees and customers tend to increase. With the greater amount of parties involved, there is a greater amount of data to deal with as well. Such business growth makes it necessary to streamline the data management processes.
Manual sales aren’t the best way to go about in such a growth phase. CRM software can store greater amounts of data while simultaneously providing access to the data across the team. Moreover, scalability is not an issue when CRM is utilized.
If you expect that your business will greatly scale, it is highly probable that you need CRM software right away.
Audrey Throne is a mother of a 2-year old and a professional blogger by choice. Throne is passionate about health, technology and management and blogs frequently on these topics. Find her on Twitter: @audrey_throne.