Attracting customers has become very difficult these days, as
people are generally harder to please given the multitude of options
available at their disposal. They are smarter, price-conscious, more
demanding, and less forgiving since they know products with equally
good or better offers are just a Google search away. A quick browse
on Amazon suggests other products similar to that which you are
Without customers, products do not sell
and revenues do not materialize. That is why companies have now
focused on sales analysis, customer segmentation, advertising,
merchandising and campaign management. They have gone beyond
marketing and have now employed customer relationship management
(CRM) systems in the hope of increasing the value of existing
customers and the overall efficiency of the company.
In simple terms, what is Customer Relationship
Jill Dyche, a former business unit president
of a premier internet software company, from the book “The CRM
Handbook: A Business Guide to CRM” published (2001), defined
Customer Relationship Management (CRM) as a set of
technology-enabled business processes that enable you to create more
consistent and profitable interactions with your customers. It is a
strategy used to learn more about customers' needs and behaviors in
order to develop stronger relationships with them. Good customer
relationships are at the heart of business success.
time a company and their customer interact, the company learns
something about the customer. By capturing, sharing, analyzing, and
acting upon this information, companies can better manage individual
CRM uses profiling,
micro-segmentation, and predictive analyses to identify each
customer’s figurative genetic structure. This uncovers the
preferences and propensities of customers, so that they can be
nudged towards optimal profitability.
Worldwide sales for CRM software
will reach $36.5B by 2017, according to a Gartner report last year.
In fact, CRM software (on premise and cloud-hosted or online) is
already the second largest enterprise software market today after
Enterprise Resource Planning (ERP). Businesses will continue to
increase investments in CRM solutions, fueled not only by improving
results but also a need to keep up with their competitors and create
a great customer experience.
How can CRM benefit your business?
The best CRM software allows you to follow quality leads
and reduce time wastage following prospects. Sales cycles are
reduced and win rates are improved. Moreover, you can check
customer buying history to identify potential leads, upsell
opportunities, or encourage repeat customers. Top CRM applications
also help identify your most valuable customers, allowing you to
create personalized communication or even a customer reward system
to increase engagement and conversion. Furthermore, you can easily
pinpoint weak links in the sales process and address the issue at
Increase profitability and efficiency
Profitability is more than just increasing sales －it is
creating efficient processes across your business operations to
make sure sales opportunities are not lost and costs are
minimized. A CRM system can act as a gatekeeper of your company's
business processes, ensuring employees are using the same
templates, formats and efficient systematic procedures to perform
Reinforce data security
With CRM, confidential customer data and trade insights are
kept in a centralized CRM system instead of separate, disconnected
desktops. You can set parameters so only authorized employees can
access the data, while keeping a close tab on a single channel for
possible breach. In military parlance, by positioning your
defensive line in a narrow channel, you reduce the superiority in
numbers of the enemy — the hackers around the world.
Attract and maintain powerful
CRMs will help drive sales and marketing efficiency that
lead to more revenues faster. Not only will we see higher
conversions and acceleration of sales velocity, these data-driven
insights will fundamentally flip the funnel. For example, instead
of talking to the majority and only succeeding 20% of the time, we
will see organizations focusing 80% of their time connecting with
the optimal prospects. This will result not only in more powerful
marketing and sales towards the right prospects, but a future
where businesses are working with the right customers, making them
successful, and building partnerships instead of simply
The best CRM
There are plenty of CRM solutions on the
market; deciding which option to purchase largely depends on the
size and vision of your business. There is not one best CRM system －
the best CRM is the one that fits the needs of your organization.
The most sophisticated CRM with all the bells and whistles might not
answer your business needs. In CRM, more does not always mean
So first and foremost, ask yourself: Why do I need CRM?
What are my goals? What are my KPIs and how much ROI do I
From there, evaluate the different CRM systems
available out in the market, and then figure out which ones fit your
The CRM Handbook: A Business Guide to CRM by Jill Dyche.
(Copyright © 2002). Retrieved from https://books.google.com.ph/books?id=2E6S1_vqTKwC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false
Gartner Predicts CRM Will Be A $36B Market By 2017. 18 June 2017.
Retrieved from https://www.forbes.com/sites/louiscolumbus/2013/06/18/gartner-predicts-crm-will-be-a-36b-market-by-2017/#22050bcc77e3