Top 5 Goals Your Business Can Achieve With CRM
When it comes to improving your customer relationship management (CRM) system, here are a few goals your business can achieve with CRM and how to measure success.
At the core, Customer Relationship Management (CRM) systems are designed to help companies better manage relationships with customers. Your CRM is only as good as your organization's commitment to its goals and objectives.
A CRM isn't something that you necessarily need to improve your business. You can survive without one. But a CRM will help you be more efficient, help you keep track of important data, and ultimately make your job easier.
So, let's explore the goals you can achieve with CRM, shall we?
Improve Buyer's Journey
Reaching customers at the right time is key. Your CRM software optimizes your marketing efforts and helps you reach customers at the right time.
A clear buyer's journey with an integrated CRM will identify opportunities for better engagement with your customers. It also helps your sales team identify new leads.
Let's say you have a buyer's journey mapped out. A CRM will help you:
- Make a well-informed decision about your customers.
- Focus on the right leads for your sales team.
- Stay on top of all engagements with your customers.
Additionally, you can create user-friendly dashboards to help sales people and marketers monitor the engagement activities with your customers.
A well-designed CRM will also allow you to automate tasks and trigger emails to help you achieve your goals.
So, how do you accomplish these tasks? Take a look at the buyer's journey below:
- Determine and track the vision for your buyer's journey.
- Determine which customers are ready to buy from you.
Only then will you be able to:
- Best manage the customer relationship lifecycle.
- Track customer lifecycle activities.
- Identify your customers’ needs.
The ultimate goal is to increase the number of sales. And the easiest way to do that is to have a detailed buyer's journey mapped out.
Once you have a buyer's journey mapped out, your CRM software should have the capacity to help you reach your customers at the right time.
Boost Sales Operational Efficiency
No matter what your sales process is, a CRM will help you optimize your efforts and achieve better results. It will also make your jobs easier and help you focus on what’s important.
A CRM can help you:
- Manage your customer engagements, and track the conversations you've had with your customers.
- Carry out some simple research to see how your customers are responding to your messages.
- Take available data from your CRM and use it to enhance your sales process.
A well-designed CRM will help you track your customer interactions and help you get more efficient over time.
Increase Customer Retention and Loyalty
Keeping your customers is always a good idea. Once you have satisfied a customer, you can always count on them to return.
A well-designed CRM will help you keep track of your customers and their preferences and help you manage your relationships with them better.
A CRM can contain a vast amount of data. From their email addresses and phone numbers, to their interests and hobbies, a CRM can help you collect massive amounts of information. As a result, it can help you better serve your customers and retain them for longer.
So, how can a CRM help you with customer retention?
- Make your customers feel important and feel better about their buying decision.
- Give them some sort of reward or recognition for buying from you again.
- Always be on top of all your customer contacts.
- Track your customer activity trends, so you know what your customers expect from you.
Lower Customer Acquisition Cost
Your CRM software can also help you lower your Customer Acquisition Costs (CAC). A clear buyer's journey, for instance, can streamline your customer acquisition efforts.
A CRM can help you:
- Reduce the number of leads you're sending to your sales team.
- Be on top of all your customer activities.
A well-designed CRM will help you track all your customers and make sure you don't send your sales team irrelevant leads.
You can also use your CRM to:
- Automate your lead generation activities.
- Eliminate the number of non-paying customers.
- Find out why customers are not buying from you.
- Keep track of your campaign progress and expenses.
Generate More Sales
The goal here is simple. You want to generate more sales leads and increase your conversion rate.
A well-designed CRM will help you track your customer activity and behavior, to help you understand what customer actions indicate that they're ready to buy. Once you've identified these actions, you can follow up to get more sales leads. You can also segregate your leads into various buckets based on whether they're in the buying process, ready to make a purchase or already purchased from you. Once you've identified your leads, you can trigger emails to reach them at the right time. You can also create lead-scoring rules to identify the right people to target.
How to Measure CRM Goals
Now that we've explored the goals you can achieve with a CRM let's take a look at how you can measure your CRM goals.
Customer Turnover Metric
A customer turnover metric helps you track the number of customers you have lost in a given time period. This metric enables you to measure and analyze your customer retention and churn rate.
Customer Acquisition Cost
The cost of customer acquisition is one of the most important metrics you need to be aware of. It simply helps you measure your total costs divided by the number of new customers you acquired.
A low customer acquisition cost will let you acquire more customers and increase your revenue.
Won Lead Index
This metric can be calculated by dividing the total number of leads you get in a month by how many sales you've generated.
This metric helps you determine how effective your CRM is. For example, if your CRM gives you 100 leads and makes only 20 sales, that's a Won Lead Index of 5.
Net Promoter Score (NPS)
This metric is used to measure your customer loyalty. Your NPS score can be calculated by subtracting your percentage of detractors from your percentage of promoters.
The calculation is:
NPS Score = % of Promoters – % of Detractors
A high NPS score will help you improve your customer loyalty.
This is how you calculate your NPS score:
Promoters = % of Customers who are very likely to recommend your products or services to others Detractors = % of Customers who are likely to stop purchasing your products or services
Customer Effort Score (CES)
This metric measures the customer’s experience in getting their queries answered or issues resolved. A high CES will help you improve your customer satisfaction and customer relationships.
Rate of Renewal
This is a relatively easy metric to calculate. It involves calculating the number of customers who renew a service or product. Then you divide this by the number of customers you have in total.
For major contracts and paid services, it’s best to take the average rate of renewal.
This metric refers to the amount of revenue a company generates from existing customers through upselling and cross-selling. To find this metric, you will need to calculate the number of opportunities created by existing customers. Then you will need to calculate the total revenue generated from those opportunities.
First Contact Resolution Rate (FCR)
This metric measures the percentage of customer issues that are resolved in the very first contact. Knowing and using this metric can help you improve your customer support and identify which customers are having issues. Right after resolving their issues, you should follow up with them to help them get back on track.
How to Find the Right CRM Software for Your Business
Now that we've seen the many ways a CRM can help you achieve better results, let's take a look at how you can find the right CRM software for your business.
A CRM is an important business tool, and it should be used as such.
If this is your first time getting a CRM, then it’s best to keep it simple. You should start with a CRM that's easy to use, and comes with the basic features you will need. If you already have an existing CRM and want to change to another one, then take the time to get to know the new one. This is important because the new CRM might have a different workflow and feature set. If you don't know it well, then you might end up losing time and money.
Once you've decided on a CRM platform, you will need to look at the features it offers. A CRM should provide you with valuable features, so you can use them to measure your CRM goals and track your progress.
A good CRM should also be able to integrate with your other business systems. This helps you keep a seamless customer journey and makes it easier to manage your business.
All in all, a CRM will help you improve your business performance and help you become a more successful entrepreneur. However, you'll also need to measure your CRM goals and track your progress, so you can see the effects of your CRM.
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