Customer Relationship Management (CRM)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 CRMPeople 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 BusinessesAll 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 CRMIncrease 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) |
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