14 Reasons Why CRM Is Important For Every Business In 2020

14 Reasons Why CRM Is Important For Every Business …

Customer relationship is one of the most critical businesses in the entire business history. Customer relationships are not just related to this digital age. The importance of CRM cannot be overestimated. We use CRM software for many reasons.

Since customer relationship is an indispensable aspect of the enterprise, people want to find the best way to achieve it. Now, you can figure out the failures over the years, but by then, those who adopt simple methods and use CRM will go further. and so. 

The basics

So now you may have hinted that “why use CRM” means “why use CRM system”. CRM refers to tools and technical systems used to perform optimal customer relationship management.

CRM stands for customer relationship management. Although the term is self-explanatory, there is no guidance and no one will know how to do it correctly. Of course, you can learn from experience, but this will come at the cost of some major mistakes in your business. So why fail when you can learn from the mistakes of others?

Some entrepreneurs have learned the importance of CRM in a hard way, but you don’t have to. This is because fortunately, in this digital age, some CRM systems will do this for you. All you need to do is understand the trends and personalize the system based on the needs of existing and potential customers.

The Importance of Customer Relationship Management

You don’t want repetitive tasks to be automatically generated or you want to automatically create leads from the website. Each company spends a lot of time responding to emails, but with the help of CRM, this job becomes easy.

CRM cannot help you complete tasks, but it can also perform supportive tasks such as task assignment and take some measures when potential customers are not active.

Maintaining healthy and productive customer relationships is the best way to ensure a bright business prospect.

Importance Of CRM

Customer relationship management is crucial because:

  • Connecting with existing customers ensures that you don’t have to attract them again like new customers.
  • Establishing contact with customers increases the chance of making large purchases, so a large number of first-time buyers are not limited to just before they perish.
  • When you make customers still feel welcome after buying, they also begin to feel loyal to your brand.
  • Since the brand image has been established before all the steps begin, customers will have something relevant or need to pay attention to when making multiple purchases.
  • When you maintain a strong connection to let customers know their value, customers will become your friends.
  • Through long-term good customer relationship management, customers are obliged or willing to promote your brand to others, and this is how your business is successful and has lasting impact.

Implementing a CRM

Before diving into the importance of CRM and why CRM is used, it is best to understand how to implement CRM in an organization.

This is how a CRM system is implemented:

  • Data is collected.
  • Data is segmented and stored.
  • The data is available to access by authorized people.
  • The data helps analyze customer behavior.
  • The system offers solutions for efficient Digital Marketing according to the trends as understood from the data.
  • The system offers suggestions to enhance the customer experience to let your business go that extra mile to impress.

Why use a CRM?

Every business organization that succeeds in a country or globally knows the importance of CRM and how to use the CRM system. They invest in world-class CRM system tools and use them regularly.Some well-known tools of the CRM system are SugarCRM, BatchBook, SalesForce and Buzzstream. You can use one of them or choose someone you know from a friend.

CRM Integration With Tools:

CRM is integrated with various email marketing tools to provide personalized direct marketing contacts for potential customers. With the help of CRM, organizations can collect information in one place, including demographic information, purchase history, personal interests, and all previous brand interactions. This information helps to create personalized messages to increase the participation of recipients . The main purpose of integrated CRM is the customer’s primary consideration. CRM can also track email performance in real time.

When the recipient opens, the sales team can receive a push notification or perform any operation on the email. With real-time results, the sales team can easily make template changes. When CRM is integrated with various email marketing tools, it can also provide you with an accurate return on investment status from email marketing activities.

  • Social Media Integrates with CRM:

Combining social data with CRM data helps increase the customer side through centralized information. In this way, you can see customer interactions with your brand on any channel and provide insights about who they are. You can easily attract potential customers through social media, but when combined with CRM, it will redouble its efforts to track activities related to different keywords.

CRM’s social media not only focuses on new customers, but also promotes relationships with existing customers. It finds potential customers through keywords and hashtags, which is the best way to get attention. It allows you to use the best tags to track industry keywords. In this way, you can easily respond to customers’ platform choices.

With social CRM, your social media manager can provide targeted content, provide special offers and help get comprehensive audience data. Social media with CRM can strengthen customer relationships with your brand.

  • Messaging Integrates with CRM:

CRM’s messaging service helps to establish contact with the audience and provide them with related services. You can automatically remind customers of upcoming quotations, events, etc. CRM with messaging services can help achieve various organizational goals, such as:

  • high level of customer service
  • reduces operating costs
  • a gain of relevant data for marketing 
  • Customer retention, etc

You can send texts to customers about issues such as product tracking alerts, customer loyalty texts, and free incentives (coupons) to further help your organization develop products and services accordingly. By combining CRM and SMS services, both customer agents can keep up-to-date with potential customer processes.

According to Gartner’s report, it is worth noting that the open text message and response rate exceeds 98%, while email marketing reaches 20%.

  • Telephony Integrates with CRM:

Telephone software and CRM software are effective for your organization. However, combining the two is effective for enterprises. Integrated CRM helps make outgoing calls faster, thereby increasing the reach of potential audiences. Your representative can use accurate and detailed annotations as a weapon for customers to provide quality services.

Satisfied prospective customers are willing to provide feedback. These feedbacks can be easily obtained through CRM. Customer CRM will require them to enter numbers based on satisfaction levels. When your sales team calls a customer, the sales team gets all the information on the phone screen, which helps clear their queries quickly and accurately.

  •  Live chat Integrates with CRM:

Integrate your CRM with real-time chat tools to help store the information completed in the chat box. When a visitor requests a chat, CRM automatically captures information from the name, email address and phone number, chat time, and IP location. When the same visitor visits, your manager will get the necessary information and greet them. You can easily view all important information near the chat window. You can have this chat history, which is useful when the same visitor is attended by different employees.

Reasons to use a CRM system

If you are still not aware of the importance of CRM, you may find the objectively lists as below:

  • Extensive Customer Data

The CRM system will have all historical records of customer trends and habits, even including the historical records you obtained before installing the system. This information is essential to analyze the wishes and trends of each customer. Knowing this, you will know what to offer them.

This will help you acquire more customers and prepare to serve newly acquired and previously acquired customers. In addition, you have a record of potential customers and contacts, and you can access them when needed. You will never lose these clues.

  • Customer Oriented Products

The CRM system not only has the basic purchase history, but also has all the details of the customer, so you can even track the customer’s purchase details and resources.

When you analyze the data and understand the price categories, brands, products, and when of the year or day your target customers like to shop, you will be able to show the right things to the right people and objects at the right time. You can never go wrong.

  • To Help you get Service-Ready

The CRM system groups customers based on their price group preferences, product preferences and location. With this information, you can wisely assign account managers or account managers to different areas and equip them with the products and teams they need. This will help you quickly serve each location.

  • Optimize Conversion Probability

You can also track when each customer is more likely to visit the website for a purchase in a day. You will know that during the holiday season or at any time of the year, it is most likely to increase demand for specific products in specific areas.

Since you now know the details of customer preferences, you will not waste time researching and collecting the data they are looking for. In this way, when your competitors figure out the needs of the target audience, you have presented them to them.

  • Retention Of Customers

With CRM, you can collect information from many sources, including social media, and centralize the information in one place, so you can use it when you need it. By giving attentive customer assistance, responding to auspicious needs and consistently considering customer needs, companies can increase consumer loyalty.

  • Easy Access Of Data Anywhere

The data on the integrated CRM system is centralized, so it can be accessed at any time and can be used by any authorized person on any authorized device when needed. You don’t have to waste precious time, and you don’t waste a lot of time waiting for the system to upload or extract data.

This increases productivity, which not only translates directly into increased sales, but also builds a reputation for your business.

  • Growing Business Reputation

When it comes to reputation, the CRM system can provide you with all help so that you can perform your work perfectly and quickly without any delay. The brand image will be brilliant. Customers will see your company as one of the most efficient companies on the market. Your team will be the best.

Most cases attributed to the software system are not important. The point is that human employees must know how to use it properly for business to flourish.

  • Boosting Brand Image On Social Media

A loyal customer base is critical to the success of any business. A stable CRM system will bring you more customers and show you how to maintain relationships with customers and keep them loyal to your brand. They will conduct word-of-mouth publicity for you through their active social media platforms. The organization cannot even provide proof to their users and upload it on social media platforms to gain the trust of others.

Therefore, the CRM system not only helps the current business and profits, but also helps you ensure a stable future for the business.

  • Training Employees

The CRM system can help employees figure out how to handle the customer relationship management part so that they can gain on-site learning experience from the software. The system also teaches these employees how to analyze important data and what data they should pay attention to.

Overall, the system makes your employees and management team more experienced and efficient than when they were hired. In this way, each employee’s performance will improve from day to day without requiring you to make any external investment to train them.

  • Helps In Reduce Cost

Another important aspect of why the CRM system is beneficial to you is that it is very cost-effective. You will obviously want to know how even if these tools are actually high-end products and not cheap. Well, look at the price cuts you will make as efficiency increases. Once you understand how to use CRM as needed, your daily work will be easy and will not take a lot of time.

Helps In Reduce Cost
  • Automation Of Every Day Assigned Task

The best-designed CRM system helps eliminate various routine tasks. In order to run smoothly, various tasks are required every day. Similar to sending emails, solving legal problems, answering calls, creating reports, etc. After completing these tasks, the representative will begin to sort out the clues.

  • Increase Coordination Among Multiple Teams

With the help of the CRM system, each team can access the same information in one place without obstacles. For example, the sales team and customer service team can share the same information to complete transactions faster, and even meet after-sales service. Each department can now mark the right person for that particular information.

  • Upliftment of Revenues

For every employee, it is very important to understand the concepts and needs of CRM. Once completed, the CRM output will increase, thereby achieving more sales targets. Now you can add other products and services to your customers. This can increase customer satisfaction, which is your ultimate goal.

  • Fast Sale Conversion

Usually, sales conversion takes a lot of time, and this is where the role of CRM continues to increase. Sales conversion is the time it takes a company to complete a sale. It begins when the representative contacts the lead for the first time to convert the lead to a customer.

CRM with the sales team can be very beneficial, because representatives will get information through the system. There is less and less time to switch through sales.

Types of CRM Solutions

There are three broad categories that CRM solutions can be classified into.

  • Operational CRM

The main motivation behind this CRM is to generate potential customers, convert them into contacts, capture every necessary detail, and manage them throughout the customer’s life cycle. Operating CRM simplifies business processes, including sales automation, marketing automation, and service automation.

  • Analytical CRM

Analytical CRM relies on capturing, translating, isolating, storing, modifying, processing, and detailing customer-related information. It also contains internal information within the business scope, for example, sales data (items, quantities, acquisition history), financial data (purchase history, financial evaluation) and marketing data (reaction to combat data, customer reliability plan information) . It provides point-by-point investigation and adjustment reports.

  • Collaborative CRM

Collaborative CRM is an arrangement of assets and systems between discrete organizations used to distinguish, protect, create, maintain, and maintain important customers. It is used in the B2B situation, in which case, many organizations can jointly guide the project progress, statistical investigation and mutual promotion.

Drawbacks of CRM

There are no qualms admitting that a CRM system has its own drawbacks. However, most of them are due to the wrong implementation.

A CRM system will not perform optimally if you:

  • Have a team that is not committed to maintaining originality and uniqueness.
  • Have a team that does not know how to use analytics.
  • Have implemented a cheap solution and not customized it to fit you exact needs. So this answers the frequently asked question, “which CRM system should I use?”
  • Have left everything to the system alone and did not take out time to personalize it to fit the brand image.
  • Have not teamed with the marketing team to sync the brand image with the CRM system analytics.
  • Have never taken out time to read the analyzed data and make the necessary changes, as indicated by the system, in your business system, the website, and the CRM system itself.


Once started, if you can avoid the above errors, your CRM system will be rewarded. Once you start using CRM software correctly, you will find the importance of CRM to your business profits and office operations. Once you see the results of using the CRM system, you will recommend your friends to use it for startups, and when they ask “Why use the CRM system?”, they will get all the answers.

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