Customer Relationship Management is one of the fastest growing technologies. A recent poll from TalkIn Clouds shows that 78% of people feel that demand for CRM software will increase in the near future. Those claims are corroborated by a Gartner study that found demand for CRM increased by nearly 14% between 2012 and 2013. Experts claim that demand for CRM technology has grown because it is a scalable solution to generate and manage business leads.
Reasons CRM Market is Rapidly Growing
There are a number of factors that are driving demand for CRM technology. Many small businesses are using CRM software to save time, streamline their business models and meet their goals more effectively. Here are some of the benefits that have fueled growth in the new market.
1) Focus on Retaining Existing Customers
A study from Bain & Company shows that the cost of generating new customers is about 6-7 times higher than the cost of acquiring new ones. Some studies have shown that the cost differential is even higher. Follow-up research has found that increasing customer retention by 5% can improve profits by 25-95%.
This is one of the biggest advantages of CRM software. A number of studies have shown that utilizing CRM technology helps companies increase customer retention by about 27%. More businesses are likely to employ CRM solutions to protect their revenues in an increasingly uncertain economy.
2) Improves Team Collaboration
Customer Relationship Management software has helped companies keep their employees more connected as well. Fostering relationships between employees has become increasingly difficult in recent years. The increased use of mobile technology and shift towards a virtual workforce has complicated those relationships further.
Using CRM allows employees to stay in contact and follow-up with their colleagues as easily as their customers. Many employees have found that using these tools has enabled them to maintain closer relationships with one another.
3) Automates Processes to Meet Sales Goals
Research has shown that human error accounts for 80-90% of disasters in many industries. There are a number of sources of human error, but it is usually caused because people are overwhelmed with their work.
Automating processes is a great way to reduce human error. Studies from the American Society of Safety Engineers, American Society of Health-System Pharmacists and countless other organizations have found that automation has helped companies reach their goals more easily by reducing the number of mistakes made by workers.
CRM technology is a great tool to automate customer relationship building. Using a CRM tool effectively will help meet sales goals much more effectively.
4) Save Time
Most entrepreneurs feel that they don’t have enough time in the day. CRM systems allow them to streamline their customer relationship management process, which gives them more time to focus on other things.
By having a good CRM to keep your contacts and information organized so that you can easily follow-up and keep track of customers, you will find yourself being able to spend more time actually selling than looking up information. Who doesn’t want that?
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