What are the benefits of CRM software?

by Marcel Nanning | Last Updated: January 18, 2022

Most companies are convinced; we need CRM software. Different people will make different arguments for this. Especially now that CRM software can be so extensive and can cover many different processes within the company. Still, it is good not to start from the question; ‘don’t we need CRM software?’ but with the question; which processes in marketing and sales can we accelerate and improve to improve the customer journey for prospects and customers. If that question is answered, the benefits of CRM systems can manifest themselves in several domains. In this article we discuss a number of benefits of CRM software that may apply to your organization.

A number of benefits of CRM software for your company!

The same truth for reliable analysis and reporting

An organization is more effective if it is based on a shared truth. This truth is guaranteed by working with multiple departments from CRM software. Based on this information, dashboards and reports can also be created for analysis. For example, map out which type of customer is responsible for the most sales in certain product categories. Analyze which campaigns are successful, how long sales processes take on average (and how you might be able to speed them up) or which organizations are ready for a specific service based on certain characteristics.

Predict revenue

In line with the previous advantage of CRM is increasing predictive power. For example, use CRM to predict when which revenue is expected. Most CRM systems support the recording of sales opportunities and associated CRM data such as order value, the chance of success and the expected term. This information, in combination with other invoices, can provide insight into the results that can be expected in the future. By linking weighting factors to opportunity data (such as revenue and probability of success), organizations can sketch realistic future expectations using CRM.

Retain customers (so that they become promoters)

A group that can be found in most CRM systems is the customer. In this article we mean; existing customers. By recording these in the system, targeted contact strategies can be set up for specific customer groups. By organizing the customer journey on the basis of customer information, customers can also become ambassadors for your organization. For example, organize:

• substantive events,
• send relevant blogs and whitepapers or
• occasionally put customers in the spotlight by nominating them for an award.

With your CRM system as the basis, addressing customers in a personal and targeted way is a lot easier.

Grip on sales processes

Many organizations work in teams on sales opportunities. Then it is very important that everyone is aware of the phase in the process, the communication with the customer and what information is known. Each team member can then use this knowledge in his or her role in the entire sales process. Even if someone leaves the team, others can take over the process by drawing on the CRM data.

Successful marketing campaigns

A well-stocked database can make a huge difference to the success of a marketing campaign. The more information you have about prospects, the better you can segment and personalize. This allows you to better tailor the message to the target group and increase the success rate of campaigns.

Many CRM systems nowadays offer functionalities to support marketing. You can set up complete campaigns with budget, planning, target group segments and integrations of marketing systems. This also includes capturing, tracking and enriching lead data. Marketing can increase its effectiveness and execution speed with this.

💡 Also Read: CRM for Marketing

Collaborate faster and smarter (marketing and sales!)

One of the biggest benefits of CRM for organizations is the improved collaboration between marketing and sales. Other benefits mentioned in this article contribute to this. By jointly looking at the same data and reports, common challenges are easier to identify. Funnels can also be set up so that there is a smooth transfer of responsibility over the process. Sales and marketing can set up joint campaigns with the help of CRM software. Think of events or email marketing campaigns.

Further down the funnel (the purchase phase, for example), marketing and sales can also work together on an opportunity. Of course, this also applies to customer campaigns and loyalty projects.

Account Based Marketing campaigns are examples of processes where marketing and sales work together and a well-filled CRM database is of great importance.

An improved customer journey for prospects and customers

CRM gives marketing, sales and other departments that interact with prospects and customers in any way or way with opportunities to improve the customer journey. For example, make a selection of prospects in a specific region and industry and set up a contact strategy for this.

This selection can be used (if you link with email marketing software or use the email marketing options of the CRM software) to offer personalized content. When prospects and customers get the right information at the right time, the customer journey improves.

Proposition Development

Another example of the use of CRM software to improve the customer journey is the creation of new products and services based on data from the CRM system. By analyzing which type of customers purchase which products or services, patterns can become clear. Based on this, you can adjust propositions or develop new propositions. Improving the offer ultimately improves the customer journey. A crm strategy you will help you with your go-to-market strategy.

In closing about the benefits of CRM software

A very important rule in the world of automation is ‘garbage in is garbage out’. You can roll out beautiful CRM software, even with options to auto-complete information to the system. Think of company data or social media posts about the company. It remains worthless information if it does not contain any data related to the interaction with the company. You will have to ensure that CRM software is actively used and updated by everyone who works with it. By working from a sound CRM strategy, you will benefit optimally from the benefits of CRM software.

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