7 facts you need to know when choosing your CRM system

The word SaaS (software-as-a-service) has become an important buzz word in today’s corporate landscape. As such, so are the various business solutions that come with it. This means that functions from Email Marketing to Time Management do not require any on-premise installment. Instead, you can access them as long as you have an internet-enabled device, and internet access. Arguably, the most important solution that a business should become familiar with is CRM, customer relationship management. The CRM industry, according to Gartner, is predicted to be worth $38.4 billon by 2018. It leads all software categories in projected growth with a 13.1% CAGR (compounded annual growth rate) from 2012-2017. With this in mind, I’ve come up with 7 important facts you need to know about CRM.

Between 30 and 60% of CRM projects fail to meet expectations…

First off, before I begin telling you all the figures let’s start with this one! The most important thing about CRM software is knowing how to use it. It seems like a pretty obvious statement, but you would be surprised. CRM is a powerful tool; a gun is, too, if you know how to use it. Many businesses might have CRM, but they don’t know how to use it properly. According to Baseline, as of 2012 companies had still not taken advantage of 80% of potential benefits from CRM use. Integration, extension and collaboration are the major areas where ROI improvement can occur. Most CRM software companies such as TeamGate or Vtiger are going to have tutorial videos and live support.

CRM offers an average return of $5.80 for every $1 spent...

CRM software can track your business's sales trends. Let’s say, for example, that you sell to both restaurants and hotels. Your sales to hotels have been decreasing whilst those to hotels show a moderate increase. Based on this you might choose to pursue a more aggressive strategy with your sales to hotels. Your CRM software will prevent you from spending time on the wrong customer-segment. Most CRM software will arrange your customers into lists, give you reports, detail the entire sales process. It’s basically highly analytical and provides you with the tools to make insightful decisions. It’s worth every dollar you spend on it because you’ll be getting $5.80 back!

More than 25% of marketers say having disparate data sources is a main reason why they can’t glean useful insights…

There is absolutely no reason to have more than one centralized system processing customer data. It is understandable, considering that you get info from many sources. The great thing about most of the CRM software out there is that it can be integrated with these various sources. You need to explore your CRM software and consistently integrate the info that is required into it. The last thing you should be doing is looking at different sources and drawing conclusions. Take the data from the different sources and integrate it into one CRM system. You will have one central system analyzing the data and offering you insights.

77% of all marketing leads are never converted to sales...                     

It’s a bit of a scary stat, but completely true! There are tons of small businesses that are not handling their leads in an organized and efficient way. The most common reason for this is communication between Marketing and Sales departments. There is no clear-cut definition as to what qualifies as a lead. This can be avoided by using a CRM system. The definition of a lead can be integrated into the system. If the marketing and sales departments both use the system then communication is more streamlined and more leads are converted. 

51% of users access their CRM on at least three devices…

Mobility, mobility, mobility! With CRM linked to cloud computing it lets you access your customers’ data anywhere. All you need is a device that can be hooked up to the internet. It’s very interesting because it shows how versatile the workplace is becoming. Different devices for different places. You might use a computer at work but an iPad at home and your cell phone during the lunch break to check on a few details. You’re dealing with customers more frequently which is going to boost conversions to the next level.

4 out of 6 consumers say they spent more money with a company because of a positive customer experience…

Customer satisfaction has always been an important part of any business. One of the reasons CRM is doing so well is because customer satisfaction is its main goal. CRM software deals with customer data in a very clean way. A lot of customers are impressed with the way they’re treated—the way the system “treats” them. This professionalism often leaves customers impressed and more likely to spend more money.

More than 84% of customers will research your product online…

Over the past few years there has been a shift in power. Information has gone from something that businesses have to something that anyone with a cell phone can have. This gives customers much more power than they used to have. With the touch of a screen people have access to mountains of info. This has made customers much pickier about what they want. In order to win your customers over you need data from multiple sources. CRM software can do that for you. It knows how to handle customers with highly sophisticated online behavior.

So, basically, if you haven’t got any CRM tech in your business then now is a good time to hop on board. The CRM industry is predicted to grow dramatically within the next few years. The most important things are to know how to use it, know what its value is, and use its centralized system for mobility and customer satisfaction. And don’t underestimate your customer’s ability to use information.