CRM - pros and cons of the system operation
CRM stands for Customer Relationship Management in English. It exists to make contact with customers more effective, thus improving the functioning of the company. All information about the client - contact and transaction history, the most important data - collected in one system guarantee higher revenues and easier service. CRM allows for an individual, personal approach to a given contractor. However, it should be recognized that this system does not only have advantages - there are also disadvantages. In this article, we discuss the pros and cons of CRM technology.
CRM system - advantages
The most important advantage is effective communication, recognizing and meeting customer needs, which is the foundation for building brand trust and loyalty. CRM allows for faster acquisition of previously lost customers. Having extensive information about them, you can formulate a new strategy to reach them. And since customer data is gathered in one place, the overall processes are significantly improved. Importantly, customers can be classified by profitability - e.g. loyal, lost, indebted, key. This greatly facilitates the work of the business - it allows you to focus on customers who are making a profit. In addition, it indicates which products or services are profitable and which are worth retiring. Thanks to CRM, you can focus on a selected group of profitable consumers - the system provides an individual approach to the customer, and thus more effective targeting of offers.
CRM helps to implement the appropriate pre-sale service, that is, understanding consumer preferences and implementing appropriate changes to the offer. The after-sales service also benefits - a wide database of information about the customer allows for more effective warranty and post-warranty service. It can therefore be concluded that Customer Relationship Management enables easier control of the customer relationship cycle - from sales, through services, to building loyalty. The CRM system affects the motivation and efficiency of employees - working with this software is more pleasant and allows for faster operation, and the costs of customer service are reduced.
Going further, this type of software allows you to measure costs in many aspects - incl. in marketing or sales - and thus simplify these processes. In addition, it allows you to achieve the benefits of the possibility of implementing cross- and up-selling strategies. And higher sales, of course, mean a greater market share, an object of desire of every entrepreneur. It is also helped by reducing the costs of acquiring new customers - good service and taking into account the needs of consumers support building loyalty to the brand. This is where word of mouth marketing comes in - a satisfied customer will be happy to pass information about the company to others. The potential increase in the market share is also the effect of having extensive information about customers, which gives a greater advantage over the competition.
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CRM system - disadvantages
Nothing is perfect, CRM systems also have drawbacks. The chief one is the need for changes in the structure of the company - all employees must participate in marketing, sales and relations with consumers. Besides, it is difficult to estimate the profitability and total costs of the entire solution. And these can be considerable - large expenses for implementation and operation, because CRM cannot be used without the proper IT infrastructure. The costs also include the implementation time for everything. And the last disadvantage - the risk of missing valuable customers.
It is clear that there are many more advantages than disadvantages.This does not mean that these disadvantages can be ignored. Considering the above-mentioned, it seems that not every activity should use CRM. Going further, an efficient manager cannot be replaced even by very advanced technology. In addition, this system goes hand in hand with radical modifications in the structure of the business, and not every company can cope with them without having adequate technical support. And for this reason, you have to weigh up all the advantages and disadvantages before reaching for CRM.