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What is CRM Software? These 5 Principles for Business Strategy

Customer Relationship Management or CRM is one of the important software that can help business development. CRM can manage the company’s relationship with customers that combines the process between humans and technology. 

Have you ever used CRM software? Or maybe you just heard what CRM is? To find out more, please refer to the following explanation, yes!

What is CRM Software?

Software or application Customer Relationship Management (CRM) is a system to manage interactions that occur between businesses and their customers with the aim of creating good relationships that can increase profits for the company. 

If you are a person who is directly responsible with customers (customer service or business owner), you must have realized that it is not easy to maintain relationships with customers.

This is because the travel process, needs, and problems experienced by them are different from one customer to another. 

There are customers who have just ordered, are in the process of negotiating, even buying back your product.

If you only have 1 or 2 customers, you probably won’t have any major problems. But what if your customers have tens, hundreds, even thousands? How can you manage the course of transactions from each customer?

That’s why Customer Relationship Management was created!

CRM will store complete information on customer data to manage good relations between the company and its customers through up selling and cross selling.

By implementing the right CRM system, you can increase customer loyalty, reduce costs, time to market, and improve work efficiency.

All of these things are very influential in increasing profits (profits) for the company.

5 Working Principles of Customer Relationship Management (CRM)

The principle of CRM lies in the willingness of businesses to increase customer loyalty and satisfaction without adding to the burden of time and cost. 

The incoming customer data will describe their profile and character. After knowing how the character of its customers, companies need to choose the right way of interaction to maintain good relationships with customers.

The CRM application will record, record, and analyze these data in detail. As a result, sales and marketing teams can easily classify which are prospects, new customers, repeat customers, retention customers, and so on.

For more details, let’s discuss 5 CRM work processes in creating customer loyalty that have a direct impact on the business:

a. Creating a Communication Circle

Between marketers and customers must create communication/interaction. How can you create a circle of communication between companies and customers.

b. Doing Customer Profiling

Get to know your customer profile, segment the market. By knowing these customers you are able to create benefits and programs according to what they want.

c. Using Customer Data

Basically, customer data is the first reference in a CRM program to always make programs/benefits, basically always use data.

d. Asking Customers “Need & Want”

This is the basis for being able to create customer service according to what customers want and need. 

The trick, when we interact by phone, survey, or interact in person to always ask what customers want and need.

e. Customer Knowledge

When you know what customers want and need, turn customer information into knowledge. This knowledge can be used to create programs, benefits, or services that will be provided later. 

Benefits of CRM Applications for Business

If you use a CRM that is not too complicated, you will know that how CRM works is very simple. Broadly speaking, CRM will help you to tag all your customers based on the process they are going through.

You will be able to monitor or take action according to the customer category. For example, sending automatic follow-up emails to customers who are in the process of negotiating or sending discount information.

If you use a fairly complete CRM, then you will find a lot of features in it. Here are some CRM features that you will encounter:

• Content Management

Digital marketing is indeed a good strategy to acquire customers with cost and measurable results.

But digital marketing also requires careful planning, especially if you use an organic marketing strategy.

CRM can help you manage content management, from setting themes, scheduling posts, to finding content topics based on customer experience. Some CRMs even provide collaborative content editing features.

• Lead Management

This is the main function of all types of CRM, from simple to complex. With the lead management function, you can group your leads and take actions based on those groupings.

For example, you can categorize which prospects have failed, are in progress, or have succeeded.

• Marketing Automation

CRM can help you to automate marketing activities. The simplest way is to send broadcast regularly, based on the category of prospects and messages you set.

For example, you can send broadcasts to your loyal customers, automatically on WhatsApp.

Generally, this feature is used for email marketing where you can send emails according to the activities carried out by users on the website.

• Analysis of Customer Data

Next is that you can retrieve and analyze your customer data without the need to open a notebook or other application. Customer data will be collected and sorted automatically according to your needs.

Later you can get valuable information for your future strategy.

For example, you can find out what the age range of your customers is and then build the right campaign according to that age range.

• Customer Journey Tracking

Just like the lead management tool, this is a basic feature that every CRM should have. Yes, you can know to what extent your customers interact with the company.

Usually CRM will help you to categorize customers based on events .

Example: prospects will be classified as SQL (Sales Qualified Leads) automatically when they have filled out the quotation. Of course this is very helpful for you in managing follow-up in the future.

Strategies for Utilizing CRM Software

There are many strategies that can be formulated by the sales and marketing team in creating loyal customers to your business, 3 of which are as follows:

1. Use Customer Data for Up Selling & Cross Selling Strategies

Because CRM can record interaction history between the sales team and customers, you can also use this historical data for up-selling and cross-selling strategies.

Your customers may not necessarily only need your product once. They can I need your product again in the future.

CRM software keeps track of past purchases, so your team can find patterns of customer interest in offering the same or a different product again. The sales team can carry out up selling & cross selling strategies to make this happen.

2. Take advantage of Data Profiles to Analyze the Market The

data stored in the CRM application can also be used to analyze what changes in current market trends and conditions, and predict what will change in the future.

The sales team at your business can track what types of items are frequentlyordered, who orders, and how many orders of these items over a certain period of time.

As a result, you can design strategies that are more relevant to current market conditions. In addition, the sales & marketing team can also focus more on one type of item that has the most potential.

3. Update Customer Data Periodically

technology deep learning is so complex that it requires the sales team in your business to update client data regularly.

Don’t forget to also arrange the customer list hierarchy, because CRM will not change the status database before the sales team fixes it.

However, an alternative way that you can do is to automate the CRM to perform certain actions.

Why is CRM Software Important for Companies?

Both large, medium, and even small companies today mostly use CRM applications to simplify their business processes, especially in terms of interacting with customers.

The party who will be very helpful when your company starts using CRM software is the sales and marketing team? Why?

The reason is because these two divisions will be directly involved in dealing with customers, both strategy and execution.

The marketing team will try to acquire more audience through a more personalized approach through a CRM strategy, while the sales team will try to convert the incoming traffic into closing.

With so many important features in CRM, sooner or later you will need them. Especially if you have started managing tens to hundreds of old and new customers every day.

One of the most famous CRM providers in the world is HubSpot. If you want to get started with CRM, you can use HubSpot to manage your business with an easy-to-understand interface.

In their own words, HubSpot is “Sales CRM software that helps you gain more in-depth insights into leads, automate sales, and close more deals, more quickly.”

HubSpot is very suitable for use by you as a beginner. With a simple display, users can immediately apply it easily. 

Conclusion

Using CRM for business is a way to manage customer relationships without adding to the cost and time burden. By using CRM you can increase customer loyalty and satisfaction. 

CRM can also help you manage content management, from setting themes, scheduling posts, to finding content topics based on customer experience.

Do you want to connect and get to know thousands of customers better? Or do you want the performance of the Sales and Marketing team to be more effective than before?

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