The Rise of CRM and How It Has Shaped Business
I gave you a brief overview of the history of CRM in another article. This time we will explain the rise of CRM and what it means as businesses shift gears from transactional to relationship marketing as well as the utilization of technology to help manage and maximize the value of information. CRM has revolutionized the way businesses communicate with their customers and leads since its early inception in the 1970s.
The Wake-up Call for Businesses
Companies have always felt the pressure to achieve sales quotas and meet certain goals every quarter. Since the 1980s, software development of CRM solutions has been on the rise, which meant a spike in competition as well. Today, companies need to have a CRM solution if they wish to remain competitive. A proper CRM solution will allow a company to reduce costs and increase sales margins to grow in their industry. Shifts in recent markets have meant businesses have focused on relationship marketing rather than transactional marketing. Gaining customer loyalty is becoming more important than making new sales. Many businesses have realized customers should be treated as an asset and they should improve customer satisfaction, which can lead to repeat business from loyal customers.
Mobile CRM is on the Rise
Mobile devices are in use in more businesses today than ever before and software developers are meeting the demand with mobile CRM apps. Companies who seek mobile CRM solutions will find an increase in customer satisfaction from faster response times, an improvement in productivity and sales, an increase in the adoption of CRM applications, improvements in the efficiency of business processes, and a spike in the efficiency of the front-line office.
Shift in Strategy
Companies have shifted the way they are structured. Instead of focusing on functions, businesses are focusing on processes. Part of those process changes include the way they communicate with and treat customers. A CRM can help businesses meet this change by integrating with business processes. This integration allows businesses to incorporate new processes in how their employees communicate with customers and leads through reporting capabilities in CRM.
Proactive vs. Reactive Customer Service
Part of the shift in processes is businesses have recognized the value of being proactive. Companies have shifted their interests in ensuring they establish a healthy relationship with their customers and ensure their questions and concerns are addressed as quickly as possible. This approach promotes proactive development of new customers. When a lead comes in, their browsing or click history is sent to the proper salesman who can orchestrate the best way to communicate with them. The salesman will know exactly what information should be sent to the lead resulting in reaching leads at the earliest time possible with greater chance of a sale.
New Marketing Approaches
As CRM continues to rise and evolve, businesses have developed a one-to-one marketing approach. With a CRM acting almost like a virtual sales member, sales teams can take a one on one approach with leads and customers. With lead nurturing and customer outreach automated through a CRM, sales staff have more time to address individual concerns or questions. CRM continues to evolve through mobile and cloud development and continues to change the way companies do business.