Last updated on June 23rd, 2022 at 04:23 am
With the evolving technology and digitization, customers today have more access to product information, which greatly influences their buying decision. It makes them more powerful in driving business growth. This trend has compelled CEOs and entrepreneurs to shift their business models from revenue-centric to customer-centric. CEOs have realized that a strong relationship with customers helps them to understand customer needs on a deeper level and increase sales prospects.
As technology is becoming the face of companies worldwide, CRM software solutions are today seen as a one-stop solution for building outstanding customer relationships. By adopting CRM solutions, the organization can automate the customer acquisition process and increase the efficiency in sales, marketing, and customer services.
As per Statista, the global customer relationship management (CRM) software market will grow to $49.6 billion in 2025. But many CEOs and entrepreneurs see CRM solutions as just an introspection tool rather than a business strategy. They cannot harness the true potential of CRM solutions due to their conventional and rigid approach toward CRM software implementation.
This article sheds light on how CRM software can help CEOs and entrepreneurs build long-term partnerships with customers and some quick tips to implement CRM strategy successfully.
Why CEOs and Entrepreneurs fail in their CRM strategy?
- Lack of clarity on CRM strategy: Not having clarity on the CRM strategy and implementing CRM solutions without a proper plan can be a complete disaster.
- Deduplicating the database: A quality database can increase the team’s efficiency in implementing a successful CRM strategy. Usually, organizations import customers’ data from various sources, and while importing data sometimes they have multiple entries for the same customer. It is a good practice to check the database for duplicate entries and deduplicate it to access quality data of the customers’. It is also essential that customers’ data are regularly updated, and failing to do so can make CRM strategy suffer.
- Stuck with old structures: Some organizations still follow the old business structure to engage customers and hesitate to adopt the agile way of working. The traditional approach does not allow businesses to target customers on a wider scale and they can have low levels of customer engagement.
- More than a technological stack: Most CEOs see CRM solutions as another technological stack and think they have least to do with it. It is necessary that the CEO, board of members, and C-level executive jump early in the process of defining the CRM strategy and make the optimum use of the CRM solution.
- Omnichannel strategy: Customers today prefer interacting with brands from various platforms such as social media platforms, emails, live chat, etc. CRM tools that do not support omnichannel strategy can sabotage the opportunities for business growth.
- Change management: Some CEOs and entrepreneurs often make mistakes in implementing CRM solutions without changing the organization’s internal structure and system. Change management is part of the CRM initiative to make the entire organization customer-centric. CEOs need to analyze all current processes and make alterations in order to leverage the CRM benefits.
- Pareto rule: The Pareto principle says that 80% of revenue comes from 20% of the customers. CEOs that don’t apply this rule in their CRM strategy cannot derive expected results from the CRM tool. In order to make CRM strategy effective, CEOs and entrepreneurs should segment their customers and identify their loyal customers that contribute maximum to their revenue pool.
- Tracking performance metrics: Organizations invest heavily in the CRM solution, but if there is no way to track, evaluate, and analyze the software result, it can be a nightmare for the business owner. It is necessary that business owners track the performance of CRM solutions.
How Can CRM Software Help CEOs and Entrepreneurs For Better Business Growth?
- Operational excellence: By having a holistic view of the customer interaction with the business CRM helps CEOs to identify the gaps in customer relationship strategy. They can fill these gaps and achieve operational excellence.
- Understand the customer better: The organization can increase the up-selling and cross-selling opportunities by understanding the customers’ preferences better. The software allows interpreting customers’ preferences and their behavior at every business touch-point. It is impossible to explore leads on such a granular level without CRM software.
- Sales and marketing automation: CRM software can reduce the workload of salespersons by scanning the database automatically and identifying the hot leads. By setting up rules, the leads can be automatically assigned to the sales rep and schedule a follow-up. It makes the sales team more efficient in identifying quality leads and assists them in increasing the conversion rate right from a single dashboard..
- Enhance customer service: CEOs can increase customer service quality by quickly responding to customers’ queries. CRM tools can route customer queries to the relevant customer service agent and make service more effective. The tool also monitors the customer-service agent interaction in real-time such as response time and the number of queries handled. All these attributes can impact customers buying decisions, and enhancing them can help businesses to retain customers.
- Optimum transparency: With the help of a CRM tool, CEOs can gain better visibility of their CRM strategy. They can track the spending on marketing and the customer engagement process. It enables them to allocate resources properly and meet the customers’ expectations.
- Seamless integration: CRM software integration with other applications has a great advantage. It saves organizations money on training employees for multiple applications and reduces the licensing costs for each application. The risks of data duplication and data inconsistency that lie with managing multiple applications can also be reduced significantly. Overall, it improves the efficiency of the employees.
- Access data on cloud: Cloud-based CRM frees up business owners from maintaining the on-premise server. It even provides flexibility to access the customers’ data from anywhere and reduces the risks of losing data. The users can even scale the software easily as their business grows with cloud-based CRM software, and CEOs do not have to worry about underlying needs of hardware or software. Further, with mobile support, the CRM application can be accessed on the go.
- Fact-based decisions: Entrepreneurs and CEOS are expected to make decisions that derive long-term benefits to the organization. There is a high risk of making wrong decisions when taken merely on intuition and not backed with facts. But CRM software provides reports and data analytics that help CEOs to gauge the company’s exact position in their CRM strategy. Based on the reports, business owners can make informed decisions on customer acquisition and retention plans.
Tips For Implementing CRM Strategy Successfully In an Organization
- Identify goals and objectives: It is impossible to get everything done at once, and therefore organizations need to take a step-by-step approach to implement the CRM strategy. For successful implementation of CRM solutions, CEOs should first identify their primary goals and objectives they want to achieve from it.
- Built a customer-centric approach: To derive maximum benefits from a CRM solution organization must implement a customer-centric approach throughout the enterprise.
- Integrate with other applications: By integrating CRM solutions with the other applications of the business, there is a huge chance in the improvement of the customer service and there is a time and cost saving benefit here.For instance, by integrating CRM with accounting software, users can track customers’ financial transactions right from the CRM solution. There is no need to backtrack and match the financial figures.
- Simplify workflow: Try to implement a simple workflow for the CRM and avoid overcomplicated things. Sometimes companies are so excited about CRM solutions that, without any strategy, they try to envelop everything into the CRM system. Business owners should not include CRM activities that become more complicated with the CRM system. The best way is to take the help of the sales and marketing team to identify the repetitive tasks that need automation.
- Choose the right CRM solution: Selecting the right CRM solution that resonates with the business needs is essential for its higher ROI. Small or medium-sized organizations do not need CRM solutions laden with lots of features during their initial phase of development. They can initially settle with basic features and later scale up to advanced features if required. Also, make sure that the CRM solution has a user-friendly interface and is easy to use.
- Train employees for CRM solutions: Without proper knowledge of the CRM software features and its application, users cannot take full advantage of it. Provide training to the employees on using CRM software efficiently and explain the benefits of CRM to the team.
Entrepreneurs and CEOs operating businesses in a highly competitive environment should understand the value of holding a customer-centric company. By implementing an end-to-end CRM strategy, business organizations can strengthen their relationship with their potential customers. It has become a major factor in the business sustainability and long-term growth. In the tech-driven world, CRM software certainly provides an edge to CEOs and entrepreneurs in nurturing customer relationships and building a strong foundation for a successful business. Healthcare CRM, Real Estate CRM,Cloud CRM tools are gaining big momentum these days. CRM software, when deployed correctly, can bring enormous value to the organization.
Jason Adams is a writer with a keen interest to continue learning and develop his research abilities. An avid reader and an eye toward growth, he is associated with GoodFirms & Its CRM Software, GoodFirms is a frontline, and evolving reviews and rating platform.