What is a CRM? And How Does it Help in Cutting Business Costs?

Do you how much money is lost due to poor customer service every year? $1.6 Trillion! Poor customer service may result because of various reasons, but the most common is that businesses fail to understand their customer’s needs and expectations. Are there always some unhappy customers present? True, but they are just a minute percentage of your total customers.  

The other vast majority are reasonable people looking for a good buying experience with a business. Getting them through the door and buying is the hard part; now, you have to keep them happy and satisfied. Easy right? 

Not always.  

For businesses who are looking to have a long-term relationship with their customers need customer relationship management software. You can’t order all their information manually, which might lay the foundation for bad customer reviews.  

In the 2021 world of social media platforms, it is very easy to lose your years of hard work to lousy customer reviews online about your product or services.  

CRM to the rescue  

Customer relationship management software or CRM software is the secret to happy customers in the digital world. It connects the marketing, sales, and customer service departments anytime. With just one login, you can access all the customer data. CRM software contributes heavily to both business and its consumers.  

Before we start reciting the tales of CRM competency and advantages, let’s see what it is? 

What is CRM Software? 

As we discussed, CRM is customer relationship management. In plain language, it is a methodology, technology, strategy, all in one, to build long-lasting relationships with their customers based on trust and understanding.  

CRM software connects different departments and collects their remarks, workings, and assessments all in one place. Every employee has a unique username and password to access consumers’ data. This allows teams of different departments to collaborate effectively and gifts businesses to offer comprehensive services through one consumer journey.  

Also Read: Biggest Offshore Development Problems (And How to Solve Them)

The old legacy systems had limited functionalities compared to CRM, which is a disruptor in the way businesses interact with their consumers.  

Benefits of CRM and how it cuts business costs 

1. Organized business activities  

It should come as no surprise that a well-structured company is fast, on time and make the best use of their resources. Advance use of the CRM software boosts a company’s profit, enhances overall productivity, and saves it from severe losses.  

2. Timely inventory supply with lower production cost  

CRM is a two in one analytics plus accounting software. Based on the consumer’s buying patterns and data analytics, it helps you to optimize your production and invest in products your customers like and thus buy the most.  

This selected and optimized production of goods makes the inventory flow just in time—no need to keep extra inventory ready in case of surplus orders. CRM establishes a dynamic, tech-optimized, and lucrative production process.  

3. Planet-friendly  

CRM is a superior technology; it has built-in security to store all data over the cloud. Financial estimation, quarterly reports, employee records, etc., is just a click away, no need to print and keep tons of files or excel datasheets.  

The entire company data is collected on a centralized system which can be accessed on any device with the internet. All the extra cost of printing and paper manufacturing is reduced to zero, which helps to reduce the carbon footprint of your business.  

4. Reduced new customer acquisition cost  

It is a long proven law of marketing that retaining present customers needs lesser investment than acquiring new ones. But to grow a business, you need new customers, and it is costly to gain them.  

CRM software passively contributes for the business to acquire new leads. A delighted customer will keep buying and eventually become an advocate of your brand. Thus a seamless customer service gradually leads to positive word of mouth in the market, increasing your product’s reputation and valuation.  

5. A free template library  

CRM software works on cloud technology; hence it can store virtually unlimited data. The marketing and sales department can use this vast space to hold email templates, text messages, or repeated HR documents in this e-library.  

So for recurring events like a consumer request for a quotation or final bill, the sales and marketing team can quickly retrieve the document, make the necessary changes and reuse the pre-written prototype in no time.  

6. No hardware or software storage cost 

CRM stores every bit of data on the cloud. There is no requirement to maintain and store hardware or software of any kind. It is one of the KPIs of CRM software, as the cloud technology makes it highly flexible and easily scalable.  

Also Read: Why Choose India For Your Next Software Development Project

As there are no implied needs to maintain hardware and software, CRM is one of the best solutions for end users like SMBs and startups who want to scale fast with more new customers coming in.  

7. Convenient customer meetings

When your customers are loyal and buy from you for the long term, to show that the company is grateful, your business representatives must meet them timely.  

CRM software plans these meetings at appropriate intervals and sets them up with local sales and business associates to ensure minimum travel distance for the associates. This, in turn, leads to reduced transit costs for the companies.  

8. Bring down the cost of customer support.  

Through innovative processes and real-time data, higher levels of customer satisfaction and trust can be achieved. And the faster a customer support query is resolved, the faster deals are closed. 

Businesses gain an unsaid advantage for exponential growth and start new ventures with positive word of mouth marketing and user-generated content rooted in efficient and satisfactory customer experience.  

What to do next? 

Now you know what CRM software can do for your business. But to reap the full benefits, you must choose the right CRM development company.  

Get in touch with our experts at CRM software development company to help your business get the best in class solutions.