Why is CRM So Important To Your Business Now?

CRM is more important now than ever to businesses because it can help you to gain new customers and retain existing ones.

In today’s highly competitive environment and with so many products and services to choose from, customers are picky and customer loyalty seems to be a thing of the past .  The moment  a new product is introduced into the market,  it takes only a few months  before that product or service  suddenly becomes a commodity .

And let’s not forget the introduction of the Buyer 2.0.

Thirty years  ago, when PC’s were a little known thing,

our behavior as consumers was different. We were more

used to receiving  information .  This came  in the form

of TV and magazine ads, we had to talk to many sales

representatives to get information, we gathered brochures and sales  materials  and then we tried to make sense of it all .

Then, when Web 2.0 and social media  arrived, they changed everything .  Forums, chats,  blogs, discussion groups,  price comparisons, scorings, rankings,  social networks, professional communities, wikis, and even business web pages offered  a lot of information to buyers .  Today’s buyers  are informed and quite immune to traditional and obvious  marketing tactics .

Customers dont need  you to tell them what they need  or want anymore. They already know. What they want is to be treated as individuals.

They want to feel like their business matters to you and that you care.

The chart shows

The chart below shows  a well-cited study by The Rockefeller  Corporation studying precisely why customers leave .  Everyone  thinks that people leave  because of lower priced competitors. If not that, then it’s because of a killer competitive offer. That’s not the case.

68% leaves because

This study showed that 68% of customers leave

because they feel like you don’t care  about  them .

Why do customers leave a company?

Customer believes you don’t care  about  them Customer is dissatisfied with your service Customer is pursuaded to go to a competitor Customer gets  a friend to provide  a service Customer moves  away

He who cares wins

 

Think back to a time when you, yourself, needed customer support from a company .  If you called the company and they had no previous information about  you, kept trans- ferring you from department to department and you had

to keep repeating your information over and over again

– you’d probably  feel like the company didn’t care  about you and didn’t value your business .

Now think about  the kind of service  you get from your favorite airline .  For example, when you call that airline, the phone system recognizes you and welcomes you by name .  You have  the chance to get routed to a live

customer representative and when that person picks up the phone, he/she addresses you by name  and already knows all your preferences, your upcoming flight information and any other  issues you may be having .

By providing you this kind of service,  the airline is giving you a reason to continue doing business with them .

Similarly,  if you are investigating a new product,  you probably  are more likely to buy from the sales  person who shows  you that he has noted,  understood and taken  into account your needs and concerns .  This shows  up in the way he follows up with you, in the direction  of the sales calls and in the offer that he makes you.

Happy customer

Needs and concerns

Direction of the sales

A CRM system can make all the difference

in whether or not you gain a new customer or retain an existing one . Customers who feel valued  are happy  customers and happy  customers mean  repeat business – not to mention,  improved  bottom  lines .

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