Why Your Company Needs a CRM Program

cloud computing Perhaps you’re now wondering whether or not you need a CRM program after reading my article “What is a CRM?”. The reality is, any business that has more than a few salespeople, or plans to, is going to need a Customer Relationship Management system. So let’s look at the main problems that occur when your business does not have a CRM, and how it offers a solution.

Difficulty Keeping Track of Leads and Customer Management

CRMs are designed to help an organization or business track its leads. If these businesses are not using a CRM, and they have a hundred or more leads, there’s a very good chance that they will drop the ball trying to address all the opportunities. There’s a great chance that conversation with those leads will not occur due to the volume and the confusion that can set in if you are not organized.

For example, say one of your prospects, after have a good phone conversation with you, would like follow up information – maybe in the form of an email, brochure, or a follow up call. Without a CRM, it becomes difficult to track where the conversation is with your prospective customer in the ever gradual process to becoming a sale. When any business or individual fails to follow through with a conversation, there is a good chance that they will not get the sale. By not actively tracking the customer conversation, customers may get disappointed as they will not feel heard or understood; and ultimately that affects your business’s growth.

Without a CRM, There is No Easy Way to Divide Up A List of Leads

Basically, without a CRM, it is very difficult to divide up a list of prospects that indicate what each customer needs and where they each are in the marketing-to- sales process. For example, some leads may just be having their first conversations with your company; others may be ready to make a purchase. Some want one item, others want a complex assortment of items that need assembly.

In an organization that has multiple salespeople trying to build a sale, it becomes increasingly more costly to divide up, track and act on the status of that list. There is a lot of time and money spent on tracking conversations, asking each person what they know, and being in a state of uncertainty. Without a CRM, there is no easy way to streamline these important processes to be more efficient.

The benefit of the CRM system is that you can separate out functions between each member of the sales team. Essentially, you can divide the labor and have the same people that were busy organizing lists and now dedicated to more valuable activities such as finding new leads. It is a simple process to divide the workflow because everyone on the team is looking at the same lead records. For example, we have a client that has grown their company quite nicely and they understand the value of divide-and-conquer. They have Account Managers, Engagement Managers, Solution Engineers and Project Managers in place before a sale is made. They understand the power of divide-and-conquer. My client’s CRM system holds this all together and each member of the team knows what to do and the status of the prospective sale.

The Benefit of CRM

To summarize, the benefit of a business management CRM is that it tracks all the customer communications and information on leads in one system. It intelligently allows you to prioritize and meet the promises you have made to your prospects and customers. You can easily track, plan, and deliver on your follow up communications –- which ultimately will lead to a sale. There is no confusion, and the CRM tracks what the next step is in the process toward sales. To put simply, a CRM is a story about good customer care and the place where customer trust is built.

Copyright © Marty Zigman 2011

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Marty Zigman

Holding all three official certifications, Marty is Southern California's NetSuite expert and leads a team of senior professionals at Prolecto Resources, Inc. He is a former Deloitte & Touche CPA and has held CTO roles. For over 25 years, Marty has produced leadership in ERP, CRM and eCommerce business systems. Contact Marty to set up a conversation.

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  1. […] Originally posted here: Marty Zigman Speaks on "Why Your Company Needs a CRM Program" […]

  2. […] requirements, and investment. This is true when choosing a CRM system.  In my article, “Why your Company needs a CRM System“, you can learn the key reasons CRM systems can make you more competitive.  Here, we will […]

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