Why Manage Customer Relationships?

The typical business loses 1/2 of its customers in 5 years and 1/2 their employees in 4 years

It costs 7 to 10 times more to gain a new customer than to retain an existing one

A 5% increase in customer retention can result in a 25% to 75% increase in profits

55% of consumers would pay extra to guarantee better service

Basic principles of CRM

People do not work in a vacuum

People work as part of a larger team

Everyone touches the contact, not just sales people- front office and back office need to be connected

Companies need tools that integrate internal and external communication tools to client tracking system

What CRM Does for Businesses

All customer/prospect information is stored in one place

Marketing campaigns can be designed to send emails, fax, make a call, schedule an appointment, manage your pipeline, close a deal, then print Welcome New Customer letter

No more leads or business slipping through the cracks

Know who your sales staff are talking to and what products your customers are interested in

Don’t miss a beat with sales staff turnover

Ramp up a new sales person fast!

Benefits of CRM

Increase your customer base

Identify and retain your most profitable customers

Increase your market share

Take a pro-active “customer view” rather than a “product view”

Build loyalty through intimate customer relationships

Companies that successfully implement CRM programs report:

Average sales increases of 51% per representative

Customer satisfaction rating improvements of 20%

Cost of sales and services decreases of 21%

Reductions in the length of the sales cycle by as much as one-third

(Statistics from Frederick Reichheld, author of The Loyalty Effect, Bottom Business Line and Insight Technology Group)