by Joe Taylor Jr.
When a small business phone provider recently commissioned a survey, company leaders were astonished to hear that three-fourths of their customers had already felt a negative impact from 2008's economic downturn. As most company owners search for ways to cut costs, it might not seem like the right time to invest in new CRM software. However, small business experts understand that the right approach to customer relationship management can help young companies survive the bleakest economic environments.
Although marketing experts often focus on attracting new customers, small business consultants suggest that existing clients ensure long-term success. For small business owners, the need to maintain strong customer relationships is amplified. A bad reputation in a small community can quickly dash the hopes of most entrepreneurs. Therefore, customer relationship management strategies extend beyond choosing a CRM software package. They represent the foundation for any successful small company.
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Building a company with small business CRM tools at its core requires discipline. For owners and employees, the benefit of tracking interactions with frequent customers may not be initially obvious. However, the most successful small businesses use CRM applications to identify potential in customers that do not always make it to sales professionals' speed dial lists.
Many small business CRM applications allow entire teams to understand a company's priorities and to view team pipelines. With this information, sales and service professionals can better understand where to put their energy. A soft-spoken customer may need more specific attention than a regular caller who likes to talk about last night's game without ordering very much. Maintaining focus on the biggest opportunities keeps cash flowing through small shops.
Small Business CRM Tools Streamline Data CollectionThe latest generation of small business CRM applications reduces the friction of entering data, especially for more traditional sales professionals who are accustomed to using their own systems. In this regard, smaller companies have an advantage over enterprise CRM application users. About 50 percent of enterprise customer relationship management initiatives fail because too many users rely on too many of their own unique data management systems. Small business owners enjoy the luxury of building their companies from the ground up with CRM software. Prospective new hires can be tested or filtered based on their familiarity with the tools.
CRM Applications Achieve Unity Across Sales and Service ChannelsSmall businesses thrive in America because of their dedication to personal service. Customer relationship management systems shouldn't replace the personal touch when customers call for help with past purchases. Instead, team members can leverage the information from CRM applications to speed up the process of offering repairs or tracking shipments. In growing companies that maintain separate sales and service departments, CRM software can help service professionals live up to the expectations set by their front office colleagues.
Once sales and service teams start using CRM applications effectively, customers tend to shorten the cycles between new orders. Car dealerships, equipment vendors, and even hair salons can find ways to implement loyalty programs that gently lead customers through purchases and service opportunities. Generating more revenue from existing customers encourages employees to cultivate stronger relationships without the pressure of price discounts. With strong customer support, small companies can weather the storm and look forward to a bright financial future.
SourcesFinancial Times
Guardian
Inside CRM
National Federation of Independent Business
TMCnet
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.
