Are your clients the prime focus for your company? How confident you are about the optimization of your CRM strategy? This article will in depth look into some of the principles of implementing CRM strategies within the small and medium enterprises (SMEs) and also focus on the role technology plays.
It will be incorrect to say that CRM is the only domain of the large corporates. The significant jump in the sales of CRM technology amongst the SMEs displays a dramatic shift in the market sentiment.
This considerable change has been pushed by the growing understanding that CRM is capable to offer ROI in different ways like lowering of cost, rising client profitability along with the jump in advocacy. But there are SMEs that are failing to identify the core objective behind bringing on board a CRM tool. It is very important that the strategic goals are set before a CRM is used.
It is believed that CRM is considered as a management philosophy that helps place the client’s right at the center of any business. CRM should act as an enabler that will support the different business processes to offer the right kind of service maintaining the happiness quotient, loyalty and also profitability of the clients.
What is CRM ?
It is not just about a particular set of technology but also a combination of the well-developed business processes which enjoys the support of the right kind of technology that is being used by the company employees. Successful CRM is always enjoys the backing of a good business strategy, which is responsible for bringing change in an organization.
Now, this change can be driven by a number of factors. The key for success focuses on the ability to create and also execute a business strategy that is able to meet the requirements of your clients and the stakeholders apart from being able to create a true client centric philosophy which witnesses ready acceptance by the employees.
In 1990s, the implementation of the CRM could not bring rapid changes in the business arena due to the lack of a coherent client centric strategy. Hence, strategic vision is an important criterion for the growth of any business as it offers the right kind of motivation for bringing change and also pushes operational actions that the organizations require to execute for attaining the set goals.
Why CRM is important?
Just at the initiation of CRM projects, it aims to basic goals such as raising the client loyalty, sales revenue and client retention levels. Gartner carried out a research and found out that one of the biggest advantages of using a CRM was the increase in operational efficiency and effectiveness.
The research also found out that CRM initiatives have successfully improved the client loyalty levels, revenue levels and lowering of costs via the streamlining of the business processes. In other words, it means that every CRM user in an organization is able to access it and view different details such as when was the last purchase made, history, feedback forms, personal information, etc. This unified view helps in less duplication of the efforts, speedier reaction times, better decisions and interactions with the clients.
ROI
Before initiating any CRM project, careful checking is required to be carried out for specific business benefits that are demanded. These should be taken note of and also consistently monitoring for making sure that it helps in effectively determining the future worth of an organization.
ROI from CRM usually comes in two forms. One is the cost reductions from rising efficiency levels. And the second kind of ROI is the revenue enhancements. Full purchase and service histories of the prominent customers help the sales teams offer the right product at the right time across the best channel. On time access to valuable details help raise the selling time, lowers the sales cycles, helps bringing needed improvement in the closure rates and also maintain the sales resources stress on the important clients.
Marketing teams send more targeted campaigns to the clients who can be prospective customers. Correct client data permits the service representatives to find and act on the cross sell and up sell opportunities.
How is it possible to effectively manage the clients?
It is a known fact that no two clients are ever same in their approach and requirements. A good CRM strategy helps offer different and client specific treatment is the core. Only a happy and satisfied client value experience is responsible for better business opportunities – which is not just cost efficient but also much under used lead generator.
It is believed that the unified view of the client helps in more effective client management due to improved insight into the client behavior (purchasing pattern, lifetime value and also the likelihood of churn). This approach helps understand the actual and prospective value of clients by reviewing their individual contributions to an organization.
Focusing on leadership and organization change in CRM
Irrespective of the size of an organization, CRM initiatives are dependent on the endorsement. These efforts often decide the culture and also the commitment of a client driven enterprise. If a CRM tool is not readily accepted by the leaders of a company, then it is likely that the employees won’t give it much due importance. Hence, the lack of commitment from the top brass will impact the effectiveness of a CRM tool and lead to lowering of ROI.
Relevance of technology
Strategy and technology needs to closely work with each other to push a client-focused plan to success. The challenge lies in the fact that any organization needs to select such a technology that will be able to fulfill the strategic objectives effectively along with the business requirements. Before you opt for an investment, it is essential to answer certain questions such as
- What are my CRM goals and which partner best suits my requirement?
- How successful can I capture the cost reductions from efficiencies and revenue growth?
- Which functionalities are the needs of the hour that will be able to support the newly formed CRM processes?
Conclusion
The CRM market which has grown manifold in the past few years is no longer reserved for the larger companies alone.
The article is also available at http://www.basearticles.com/Article/5338/CRM-for-SMEs-Moving-beyond-technology.html
It will be incorrect to say that CRM is the only domain of the large corporates. The significant jump in the sales of CRM technology amongst the SMEs displays a dramatic shift in the market sentiment.
It is believed that CRM is considered as a management philosophy that helps place the client’s right at the center of any business. CRM should act as an enabler that will support the different business processes to offer the right kind of service maintaining the happiness quotient, loyalty and also profitability of the clients.
What is CRM ?
It is not just about a particular set of technology but also a combination of the well-developed business processes which enjoys the support of the right kind of technology that is being used by the company employees. Successful CRM is always enjoys the backing of a good business strategy, which is responsible for bringing change in an organization.
Now, this change can be driven by a number of factors. The key for success focuses on the ability to create and also execute a business strategy that is able to meet the requirements of your clients and the stakeholders apart from being able to create a true client centric philosophy which witnesses ready acceptance by the employees.
In 1990s, the implementation of the CRM could not bring rapid changes in the business arena due to the lack of a coherent client centric strategy. Hence, strategic vision is an important criterion for the growth of any business as it offers the right kind of motivation for bringing change and also pushes operational actions that the organizations require to execute for attaining the set goals.
Why CRM is important?
Just at the initiation of CRM projects, it aims to basic goals such as raising the client loyalty, sales revenue and client retention levels. Gartner carried out a research and found out that one of the biggest advantages of using a CRM was the increase in operational efficiency and effectiveness.
The research also found out that CRM initiatives have successfully improved the client loyalty levels, revenue levels and lowering of costs via the streamlining of the business processes. In other words, it means that every CRM user in an organization is able to access it and view different details such as when was the last purchase made, history, feedback forms, personal information, etc. This unified view helps in less duplication of the efforts, speedier reaction times, better decisions and interactions with the clients.
ROI
Before initiating any CRM project, careful checking is required to be carried out for specific business benefits that are demanded. These should be taken note of and also consistently monitoring for making sure that it helps in effectively determining the future worth of an organization.
ROI from CRM usually comes in two forms. One is the cost reductions from rising efficiency levels. And the second kind of ROI is the revenue enhancements. Full purchase and service histories of the prominent customers help the sales teams offer the right product at the right time across the best channel. On time access to valuable details help raise the selling time, lowers the sales cycles, helps bringing needed improvement in the closure rates and also maintain the sales resources stress on the important clients.
Marketing teams send more targeted campaigns to the clients who can be prospective customers. Correct client data permits the service representatives to find and act on the cross sell and up sell opportunities.
How is it possible to effectively manage the clients?
It is a known fact that no two clients are ever same in their approach and requirements. A good CRM strategy helps offer different and client specific treatment is the core. Only a happy and satisfied client value experience is responsible for better business opportunities – which is not just cost efficient but also much under used lead generator.
It is believed that the unified view of the client helps in more effective client management due to improved insight into the client behavior (purchasing pattern, lifetime value and also the likelihood of churn). This approach helps understand the actual and prospective value of clients by reviewing their individual contributions to an organization.
Focusing on leadership and organization change in CRM
Irrespective of the size of an organization, CRM initiatives are dependent on the endorsement. These efforts often decide the culture and also the commitment of a client driven enterprise. If a CRM tool is not readily accepted by the leaders of a company, then it is likely that the employees won’t give it much due importance. Hence, the lack of commitment from the top brass will impact the effectiveness of a CRM tool and lead to lowering of ROI.
Relevance of technology
Strategy and technology needs to closely work with each other to push a client-focused plan to success. The challenge lies in the fact that any organization needs to select such a technology that will be able to fulfill the strategic objectives effectively along with the business requirements. Before you opt for an investment, it is essential to answer certain questions such as
- What are my CRM goals and which partner best suits my requirement?
- How successful can I capture the cost reductions from efficiencies and revenue growth?
- Which functionalities are the needs of the hour that will be able to support the newly formed CRM processes?
Conclusion
The CRM market which has grown manifold in the past few years is no longer reserved for the larger companies alone.
The article is also available at http://www.basearticles.com/Article/5338/CRM-for-SMEs-Moving-beyond-technology.html
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