CRM System: 4 Reasons Why It’s Your Most Valuable Asset!

CRM System: 4 Reasons Why It’s Your Most Valuable Asset!

Post summary:

  • What is your most valuable asset?
  • Do you have an overview of your customers?
  • What is the business value of a good CRM system?

A topic I like to discuss with managers I meet, is what they think is the most valuable asset in their business.

I get all kind of answers, depending on their industry, and what state their business is in.

Hotel owners and shop owners often say “location, location, location”.

Managers in the IT business tend to focus on the new, hot products or their partnerships.

Managers from the consulting business mention that their employee’s brains are the most valuable. Others emphasize trademarks and brands. A great management team, dedicated staff and sales starts is also on the list.

The one thing all of these answers have in common is this:

All of these are aimed towards getting more customers.

Customers are important to businesses – they pay bills and salaries. So why is it, that customers often say they feel neglected by their suppliers?

Customers stop being customers for many reasons. They move to another location, they go out of business, or they go to a competing company. These reasons count for 34% of customer loss. The remaining 66 % leave for another reason – they just feel ignored when interacting with some companies. Luckily, we can do something about this.

Keep a Good Overview of Your Customers

Many companies use spreadsheets for storing their customer data, and I keep asking myself why?

Spreadsheets get lost, they become outdated, and they might fall into the wrong hands. Business cards are important for collecting customer data. But not when lying on your desk. These customer strategies miss something important – collaboration.

A customer database increases in value when everyone works together on populating it with data.

 

CRM system a valuable asset Superoffice

I recently heard a great story from one of my customers, Sales Director Eiliv M. Liljevik at Making Waves. As a co-founder, he is passionate about growing their business. Making Waves started out with 14 employees, and now have more than 300 employees. This is a great development, and without a proper CRM solution it would have been difficult.

Since they started in 2001, he has demanded that all employees register every customer along the way. One of his key points is that any customer or contact should be registered in their central CRM database, with the email as the top field to remember, being the key to their customer and lead nurturing strategies.

The value of a CRM system

Here are 4 reasons why a CRM system can be your greatest asset.

1. It allows you to register your leads and contacts

You never know when a lead is ready to buy from you. Probably not today anyway. Keep them warm.

It is never too late to start organizing your customers and contacts. You need some basic categories to make your data efficient so that you can implement your CRM strategy to fulfill their needs.

You need categories like Customers, Lost Customers, Prospects, Suppliers, Partners, Potential Partners, Influencers and Inactive Customers.

You could also consider dividing customers into A-, B- and C-customers depending on different customer retention programs for each segment. So you might get rid of your complex spreadsheets once and for all.

2. You can track all customer interactions – from everyone in your company.

Next time you talk to a customer or prospect, you get the upper hand when you know what that company is talking about. You can get the person to feel seen and important. And this history builds a long-term relationship. Emails should be in your system, and not in each person’s mailbox.

3. It reveals possibilities.

How many prospects have you “not sold to” yet?

Most likely a lot. I usually tell my sales team that a “no” most likely means “not today”. Most companies keep their current supplier until they are ignored. That’s why keeping them alive and kicking in your CRM database is so important. And if you have an effective email marketing strategy or a great seminar plan, their business might be yours for the next quarter.

4. It makes your most valuable asset – the customer data – remain.

People change jobs. Have you ever experienced someone leaving you, and nothing is left behind?

The sales pipeline wasn’t up to date. The contacts wasn’t updated. The important contacts wasn’t registered – because all relevant information was stored locally. Don’t let it happen to you.

Conclusion

Without a CRM system, it’s difficult to focus on the customer.

But, companies that invest in CRM are using its value to put the customer at the heart of their business, which is the fastest way to increase sales and profits. Hopefully, these 4 reasons above help you realize that CRM is no longer optional, but a must-have for your business.

Do you use a CRM system to manage your contacts and customer data?

If you’re looking to get started with CRM system, try SuperOffice CRM and request a personalized demo (below).

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About Hans Christian Grønsleth

Hans Christian Grønsleth

I have worked in SuperOffice since December 2007. From December 2011, I moved into the SuperOffice cloud. As Director of Cloud Services or Minister of the Clouds (as we call it in Superland*) I am responsible for our global cloud initiatives. And we mean serious business. I have a passion for customers, and the positive tension between buyers and sellers. I share part of my life on social platforms. Talk to me on twitter @gronsleth

20 Comments

Steven MacDonald

about 5 years ago

Great post, Hans. Since the power has moved back to the customers and is no longer in the hands of corporations, managing your customer data and your relationships on a personal level is key to success, and therefore a CRM system is incredibly valuable.

Reply

Hans Christian

about 5 years ago

Thanks for yor comment, Stephen. According to Gartner as in this newly published report in Forbes, a growing number of companies see this point. http://www.forbes.com/sites/louiscolumbus/2013/04/26/2013-crm-market-share-update-40-of-crm-systems-sold-are-saas-based/ Still, a lot of SMEs still have their key customer data in things like spreadsheets or private mail boxes. Does anyone know some statistics from Europe on this topic?

Reply

Lars B

about 5 years ago

Hi Christen! The honest thruth why SME Businesses do not Invest in CRM systems, is the price and implementing cost. Take this from a former Sales Manager of the Superoffice partner sales division! Great system, would love to use it, but the cost of installing .... sorry!

Reply

Hans Christian Grønsleth

about 5 years ago

Thanks for your comment, Lars B. SuperOffice customers range from small to medium and large companies. Some of these require assistance to in all aspects of CRM, from workshops, configuration, integration, testing, training and follow ups. And our implementation method, SIM, takes this into account to secure this process. In the smaller end of the market, this is different. I se you point. Some companies want a quick start, some initial help with setting the system up and a low monthly cost. SuperOffice offers various price models ranging from purchase or rental agreement for the "on premise" solutions. Since 2010, we also offer CRM Online, a true cloud based (saas) CRM solution. Starting at NOK 295,- per user per month. In order to hold the services down, we have created online videos, FAQs, tutorials to assist the new customers getting started. Hope you see that we then are tru to our saying: Freedom of Choise. On premise, in the cloud. Buy, rent, host (saas). Are you ready to try us?

Reply

CRM programa

about 5 years ago

I agree with the main idea of a post. Without CRM system a business can not reach the best effort.

Reply

Suman P

about 4 years ago

Good introduction to CRM. These days with the advent of social media sites, enterprise business solutions are increasingly upping their game - turning their systems towards "user engagement", like users engage in social media sites. bpm'online CRM is one and maybe there are more

Reply

Krystyna

about 4 years ago

Awesome post.

Reply

Isabella

about 3 years ago

Great article. A good knowledge of customers enables you to develop marketing strategies that target their specific needs. CRM system is a best way to enhance business relationship with customers.

Reply

Shama

about 3 years ago

A very good article I must say. I stumbled upon this article doing a google search on CRM cost implementation. I must say you have included the most crucial points on CRM as how it simply helps the Small scale industry. One of the best part is that it help to build up communication gap. It would be nicer if this article would cover cost when companies opt for free and open source software. I am definitely going to use this information you post here to talk to my future clients. I will push this url in the process.

Reply

Steven MacDonald

about 3 years ago

Thanks Sharma, I appreciate it!

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Sankar

about 3 years ago

Perfect Article!!! A person who don't knows about CRM, comes to know about Customer Relationship Management and impact towards Business!

Reply

Steven MacDonald

about 3 years ago

That's right, Sankar! I appreciate you taking the time to comment.

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Michael Straits

about 1 year ago

CRM software will easily become the core of your operations. Your CRM system should have stringent security measures to prevent cyber attacks and data loss, as well as provide a means to access your data in the event of an outage or cyber attack.

Reply

Satyanshu Sharma

about 10 months ago

Wonderful read and really explains why a CRM system is essential to any business.

Reply

Andrew

about 10 months ago

CRM’s are great tools for syncing marketing and sales processes. They are perfect for project management, task management and lead nurturing. Companies must definitely invest in CRM tools that match their business goals and objectives.

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Daniel Olson

about 7 months ago

With the help of CRM system, you will be able to understand your customer's needs and behavior, thereby allowing you to identify the correct time to market your products to the customers.

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Steven MacDonald

about 7 months ago

Well said, Daniel!

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William Hills

about 1 month ago

Nice information, you have shared - I also want to include in brief: In every business set up, the customer is the king. If you lose your customer you lose valuable business. So, It is very important to acquire new customers and retain the existing ones. Customer Relationship Management is what helps you with this entire process. Here are a few benefits of choosing a CRM for business. It helps you increase your sales It increases your business’s profitability and efficiency It helps you in making fast, reliable strategic and tactical business decisions You can easily reinforce data security The mobile-optimized CRM will increase your field team's productivity.

Reply

Steven MacDonald

about 1 month ago

Well said, William!

Reply

Johnny Welsh

about 1 month ago

100% agree. A CRM system is invaluable to our business. Very informative and useful article.

Reply

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