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What are the benefits of CRM for small business?

Categories CRM

Even a small business needs sales and marketing and if that is true, a CRM is a basic necessity for a small business. The reason is a CRM is a tool that helps your business scale and even a free sales CRM can do onders for your small business which you never expected. If you have a very small business with five or ten clients, you may manage with Google Contacts but as the secret of sustenance is growth and to grow you can’t go without a CRM as you would need something very sophisticated.

CRM is Customer Relationship Management and it lets you hunt, store and manage data of prospective customers and helps any business to forge ahead through the buyers’ cycle and close the sale. It also helps you in marketing and customer retention as well, be it in any industry whether it’s retail, heavy industry, food and beverages, e-commerce, education, real estate or any other. Irrespective of the sector you are in, it helps you to increase leads, nurture them, close deals faster, increase customer loyalty and retain them. However, we classify the benefits of CRM for the small businesses below.

CRM Organizes Data

Although the customer base of a small business may be small, it’s impossible to memorize and keep track of every interaction that happened with customers and organize them according to priority. One of the basic functions of any CRM is to organize and prioritize data and it ensures that the history of each customer and the previous interactions are all in front of you when you are interacting with them. By organizing the data and increasing the ease of interaction with customers, a CRM increases the conversion of leads by 35 to 45% on an average. This can be an asset to a small organization trying to gain grounds and increase market share rapidly.

Better Coordination, Better Customer Satisfaction

As the transparency and data organization is enhanced, the interactions with a customer can be more satisfying as you would be able to see the previous interactions and the promises made. The customer need not remind you of the previous interactions with the other team members of your organization making you seem smarter and consistent rendering a great brand image as the customers today expect that you would be aware of the previous interactions already. Apart from that, it also helps you to keep in regular touch with your prospects or customers intensifying the probability of closing the deal and higher customer satisfaction.

Reacts by Automating Contacts and Segmenting Information

Segmenting of customers is important as each customer’s needs are different necessitating different modes of communication which a CRM can do for you automatically. For instance, the communication with a prospect who has downloaded an eBook from your website should be different than an existing customer. Based on the interaction of prospects and customers, a CRM sends different communication materials as programmed, automatically saving the small business a lot of costs but yet function as an established brand. This necessarily saves time, labour and minimizes the clerical work which a small business may find hard to afford.

Customer Retention

It’s a known fact that the cost of retaining a customer is much lesser than acquiring one but a small business has to often overlook this marketing axiom because of the paucity of resources. A customer relationship management software makes it happen even for a small business effortlessly as you can see the metrics of marketing and sales and automate most of your communications. For instance, a customer who has already purchased software from your company and you need to push sale the upgraded version, the CRM software does it for you automatically. You also have the option of analysing the data and the metrics and tailor make your communication based on the interactions of the customers and history.

Email Integration and Automatic Dialling

Your email can be easily integrated with the customer relationship management software you use and this works wonders with lead management and conversion rates. Another feature is the integrated telephony which makes the CRM software dial the customers automatically according to their sales-readiness saving time and money. This can be an asset for a small organization with limited resources.

The Bottom Line

To conclude, customer relationship management software is not a digital luxury for a small business often underestimated by small business owners. It’s a tool that can automate most of your sales and marketing processes increasing the revenue to a whopping 45% with a much shorter sales cycle increasing the much-needed cash flow for a small business organization.