CRM: Know your customer, grow your business17 October 2005
One of the key advantages that small businesses have over large is that they are able to create and maintain a closer and more personal relationship with customers and clients. In addition, new customers are likely to be attracted to smaller enterprises on the assumption that they are likely to offer a more dedicated approach to their individual needs.
But as a business starts to grow, it is a good idea to ensure that customer relationship strategies and systems are in place to guarantee a continuation of good service and sales, regardless how large the customer base becomes.
What is CRM?
Customer relationship management (CRM) is a business philosophy, which is built around the collation of data relating to individual clients and its use in predicting what their business needs in order to promote good customer service and to generate continued sales.
But it relies on efficient technological backup, and investing in CRM software means that the small business can store customer information, ranging from essential contact details to purchasing trends.
And establishing a suitable CRM customer database can mean that every member of your organisation can access essential and accurate sales information quickly and efficiently.
How will a CRM database help small businesses?
Depending on the type of CRM database implemented, there are a number of clear and immediate benefits to the small business.
- Improved business continuity through company-wide access to accurate customer details.
- Increased profits through the timed identification of customer order requirements.
- Identification of purchasing trends, leading to targeted marketing to appeal to customer needs.
- Increased sales to both existing and new customers through the tailored offering of products and services.
- Provision of good customer service as a result of an efficient and personalised approach to their demands, and therefore improving customer retention.
What CRM services and software are available?
Many people in the IT world are awaiting the launch of the upgraded Microsoft SQL Server next month, through which a number of CRM database systems operate. It is a good idea to determine the scale of database your organisation requires, and the specific functions, like data-mining you need it to perform. A software package such as Microsoft Access is a cost effective way of setting up your own simple system which can be used alongside existing technology. Or you could opt for an off-the-shelf product, Goldmine is a good choice for tracking and automating customer details, and Microsoft CRM offers a variety of useful packages and tools. A number of companies also offer bespoke CRM systems, although these tend to be of most value in a large-scale operation and can be expensive. A final option is to organised a web-based solution through an application service provider such as SalesLogix which is particularly suitable for businesses involved in e-commerce.
For more information on the benefits of CRM for small businesses, and how to go about implementing it, visit the Business Link website.
