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 don’t 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.
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 .