Why is CRM Important in Marketing? Here are 6 Reasons Why
Eighty percent (80%) of your company’s revenues will come from twenty percent (20%) of your existing customers and attracting new customers will cost your company five times more than keeping an existing one. This means that improving the customer experience and ensuring customer satisfaction among existing customers is extremely important.
Moreover, increasing customer attention by five percent (5%) can actually increase your profit by twenty-five (25%) to ninety-five percent (95%). So how do companies address all these issues these days? Most of them use CRM technology.
The use of CRM software is on the rise lately as the technology is gaining popularity across all sectors of the business community. CRM solutions have been used to smoothen the sales and marketing processes of companies. They have been utilized in managing leads and customers’ contact information and use this information for further engagement.
But how are CRMs being used by companies to refine their workflows? How are they used for businesses to gain more profit and gain an edge over their competitors? Why is CRM important in marketing? Here are six reasons why:
1. CRM helps with sales
Without good sales, marketing is never effective. So you need a good sales process, you need good sales funnels, and a CRM allows you to do that in a scalable way. A CRM allows you to get the information you need and follow the necessary processes that have worked for you in the past years so you can drive the highest closing ratio.
Here, you want to make sure that your salespeople are following the necessary workflows. Overall, when everything goes smoothly and your work processes are going as planned, your sales will inevitably increase, therefore increasing your profit as well. Your CRM helps with sales and business growth as a result.
2. Tracks the lifetime value of your customer
A CRM is important in marketing because the software lets you track and monitor your customers’ lifetime value. For example, if you have observed that your customers are coming from particular marketing channels, a CRM lets you monitor the lifetime value of that customer: how much revenue they have contributed to your business all throughout, and this also lets you see your marketing efforts’ true value.
So in other words, with a CRM, you will be able to monitor the leads that come from your marketing channels such as Facebook or Google and let you know which marketing channel provides more value— which should be focused on for the next marketing campaigns.
Overall, the knowledge you will gain from the data and information your CRM provides will help you optimize your marketing, letting you invest more in what’s working and less in what’s not.
3. It automates marketing processes
A CRM lets you set up automated drip campaigns via email to potential and existing customers with different types of content for different purposes: encouraging website visitors to make a purchase or to check other products, trigger a purchase behavior among existing customers by offering discounts, or by encouraging word-of-mouth communication by rewarding feedback, reviews, or referrals. This strategy can also be done with text messages.
Allowing this email automation streamlines your business. You’re doing more with less, which is driving more sales. Automating helps your employees as well. It eliminates mechanical and boring work processes which can affect employee morale.
By automating these processes, your employees will have more time to focus on more important tasks that cannot be automated for now.
4. Improves other areas of your business
A CRM opens up new areas of improvement and opportunity for your business. With a CRM, you will be able to get more sales and product ideas, and you will be able to optimize your marketing based on the data that your software has gathered during use.
Data is important, and a CRM provides ways to capture the needed data in a streamlined way. It also lets you use that data to improve your business moving forward. The caveat here is that you must be able to use your CRM system correctly, and you can do this if you are able to choose the right CRM solution provider. This can be invaluable to you long-term.
CRM overall helps you make data-driven decisions. And with the right data gathered from key aspects of your business, you will be able to improve the areas that need to be improved which can help with your business impact and survivability along the way.
5. Improves customer experience which helps establish loyalty
CRM is an important tool when it comes to getting potential customers (lead generation) because the tool allows access to past customer data— for example, marketing campaigns, previous customer purchases, and level of customer service satisfaction. CRM software and systems also automate these processes so that both the businesses and their customers can experience an enhanced sales process which improves the satisfaction for both parties.
CRMs allow salespeople (or even front-end employees) to gain insights and pull important metrics to improve the overall customer experience. Sometimes, not having enough information or insight can be a roadblock to providing a better service for that representative.
The role of CRM tools then is to organize the data and information needed for that representative to provide exceptional service and make sure that your valuable customers are well taken care of.
A CRM can provide salespeople the ability to check customers’ order statuses, access their history of purchases, and look at pending orders while sharing metrics on the customer interactions for better managerial performance.
6. Enhances data-driven marketing
Data-driven marketing is an approach that uses customer information to optimize advertisements. It is one of the most transformational changes in the digital advertising world that has ever occurred. The explosive growth in the technologies for creative production and automation is a consequence of the popularity of managing marketing data for better business results.
These expanding marketing tech and ad tech sectors now enable personalization of every aspect of the marketing experience. Data-driven marketing takes the answers to questions like who, when, where, what, and makes those answers actionable. Automated or semi-automated usage and activation of data allow for a significantly better and more optimized media and creative strategy.
The benefits of data-driven marketing and especially data-driven advertising are highly significant. The first one is it provides for more efficient media buying. Data-driven marketing, overall, removes a lot of guesswork from media planning and buying through the use of algorithms and case studies.
In short, with a CRM, campaigns such as advertisements (or anything that involves engaging leads, in the first contact) can be done at a much cheaper rate while not compromising their quality and effectiveness. It can also prove valuable in the long run.
The future of marketing with CRMs
With artificial intelligence, all of this data can be analyzed and be leveraged in real-time to create personalized customer journeys. CRMs will become necessary for all brands to move towards a future where every interaction with customers is customized.
We will also see a widespread adoption of AI by major brands now. The next important stage of the future of data-driven marketing is the use of data management platforms such as CRMs. More than 55% of marketing leaders are currently using CRMs and an additional 35 percent plan to adopt one within the next two years.
Make your CRM strategy successful
Here are a few tips to make your CRM strategy successful:
- Consider all your touchpoints when using the CRM
Your CRM should be able to gather data from all the touchpoints of your business. A touchpoint is where the customer and the business engage — like your website, a social media channel or page, or even a physical touchpoint like a store.
Using the CRM, you can leave forms for your customers to fill out in these touchpoints so that all the data concerning your customers will be integrated into the CRM. The CRM will then organize this data and information for your sales representatives’ use, so they can personalize their interactions and improve the customer service experience.
- Make sure your CRM provider can accommodate your growing needs
Throughout the use of your CRM, you will encounter roadblocks that can prevent you from maximizing your CRM and utilizing it to grow your business. Issues like scalability or technical errors can appear along the way. Make sure that the CRM provider that you have chosen is capable of addressing these issues right away.
- Make sure your data is secure
Your CRM should be able to secure your data. A cloud-based CRM is preferable as most cloud providers are proven to ensure data security and integrity for their clients, reducing the probability of the data being deleted or corrupted.
There is also an issue with privacy among businesses. So make sure that your clients’ data are secured and only given and accessed by employees that are allowed to access them. Your CRM should be able to restrict access by roles or departments so that these restrictions won’t be debilitating to your teams as they continue to work.
- Consider the important processes to automate
When automating processes, make sure that the lack of human intervention will not compromise the quality of the service given to customers.
Automation provides so many benefits to businesses such as reduced costs, faster services, and a more efficient work process as a result, but this can be harmful when the wrong service is given to important customers. So make sure that only the important processes are automated and they are automated well.
For Your Marketing Needs, Choose Saphyte
When looking for a customer relationship management (CRM) software, choose Saphyte.
Saphyte is a contact management tool that can help your sales team with their day-to-day tasks. With a CRM like Saphyte, your business process will be enhanced and your sales cycle shortened. It can also help your sales reps promote your products and services well using the data the system has gathered.
The bottom line is: even a small business can benefit from a CRM. When looking to improve your marketing processes, choose Saphyte. Contact our support team now.