With a large portion of audiences regularly using Google to search for new companies they have encountered, the digital footprint of a brand has become critical to its success. Website, social media presence, digital promotional practices and online customer engagement activities act as indicators to where the company stands and where it will go.
One such important strategy that can mark the digital footprint is Customer Relationship Management. CRM analytics helps companies understand their audience better and make faster and better decisions to ensure that the target base is sustained and can be expanded.
Importance of CRM for business
It is now the age of digital disruption. Innovations like cloud computing, social media, predictive analysis, and mobile-based technologies have broken down barriers and are redefining traditional business models across sectors. With more choices and more information, customers are more empowered than ever before. And with the aim to keep the customers satisfied, companies are employing direct engagement strategies like CRM to overcome business challenges, increase acquisition, boost revenue, improve retention and enhance overall customer experience.
Companies often fall prey to the misconception that in today’s day and age, technology is the driver for company strategy. The truth is in fact that technology needs to be aligned with business strategy and should not be used as the singular driving force. Practices like CRM involve data mining and online processing which can help improve business strategies and adapt them to the ever-changing needs of the market. Companies need to ensure that they constantly exceed customer expectations, and to do so it is important to know what the customers think, feel and want. Through CRM, companies can get a better understanding of consumer behavior which can help them deliver high quality digital experiences.
All in all digital disruption through analytical practices has become the norm; it is imperative to keep up with the ever evolving strategies to stay ahead of the game. Companies that don’t maintain pace with CRM analytics strategies will pay the price for not innovating and evolving and are most likely to eventually fall out of sync with the growing business markets.
Successful CRM models
Upcoming businesses and start-ups have understood the importance of CRM for commercial functions and have absorbed the practices in their business models. Brands such as Uber, AirBnb and Swiggy operate with a ‘shared economy’ system which leverages technology to enable transactions while helping the businesses to distribute required information or services at the maximum capacity. Through CRM, these brands rely on personal data of customers which is maintained in categorised systems and then use it to device strategies for retention, acquisition and engagement of audiences.
Uber, is an excellent example that personifies the time and age of CRM. Uber is a real-time functioning mobile app which connects drivers and customers to enable friction-free transactions. It has a location-based technology that works at the click of a button to get you from one place to another and this is monitored through a feedback channel which helps the company manage customer relationships.
AirBnb is a brand that has disrupted the digital hospitality industry. They are collecting strategic data at an ever-growing pace with complete profile of the customers as well as vendors , details of residences, descriptions of localities etc. which is something that hotels cannot garner through direct business. With over 800,000 listings, AirBnb is on its way to become one of the biggest and smartest digital data-driven travel companies.
A tool to increase ROI
CRM is a tool that needs to be sufficiently and effectively utilised to ensure results. Using CRM software to ensure positive ROI requires consistent execution, higher automation and enhanced information. It is necessary to plan, measure, evaluate and adapt to ensure that the CRM strategies you have adopted pay off profitably.
- Increases Revenue : CRM can benefit the topline of business by helping a company improve its selling processes and channels by opening up new avenues based on the customer data and information collected. With improved business processes that simplify life for the consumer, CRM analytics effectively ensure increased revenue and higher engagement.
- Reduces Costs : Many business models often have inefficiencies which may be costing the company a lot of money. CRM helps to identify these problem areas and reduce costs and unnecessary expenditures. CRM can benefit the overall business processes which are responsible for customer acquisition, such as improving the quality of sales leads and ensuring maximum optimization of funds.
- Increases Customer Satisfaction : CRM analytics uses detailed data to help brands understand their customers better. Through this information companies can exactly pin point what customers are looking for and thus meet their needs in the most effective way. With a complete 360 degree view of customer behaviour and requirements brands can adapt their functioning, processes and services to ensure highest level of customer satisfaction which in turn leads to retention and higher sales.
A successful CRM system is necessary to ensure a healthy brand and customer relationship. CRM will help companies ensure increased prospects, customer happiness and overall improved business functions. In the years to come, CRM will be at the heart of all digital and technological innovations and initiatives.
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