Relationships with customers are very important for business. Business progress and development lies in good relationships with customers. One of the tools that can help build good relationships with customers is to understand the basic principles of CRM or customer relationship management .
In general, CRM allows a business to control how they interact with customers, from receiving sales numbers and data, to creating effective communications and customer service when needed.
11 basic principles of CRM for Business
1. CRM is more than just software
CRM is an important tool for a business to grow. However, CRM is not just software that is able to present important data related to your sales and customers.
It takes strategy and knowledge about what you want to develop in order to maximize the benefits of CRM.
2. The importance of effective analysis
CRM software provides a whole host of data about your sales and customers. You need to do analysis so you know what to do with the data.
The data collected from CRM can help identify the strengths and weaknesses of your products to make changes and improve your top selling products.
3. Understand the Customer
The most basic principles in managing customer relationships are often ignored by businesses. To build a relationship with a customer, the first thing to know is what the customer wants.
The market is very volatile. Products/services that used to sell can quickly become obsolete. Therefore, it is very important to track customer needs on a regular basis.
There are several ways you can do this, for example by looking at their movements on the website or social media and analyzing them to gain insight.
Another alternative is to conduct a survey to find out their needs directly.
With the CRM module contained in CRM software, it will make it easier for businesses to understand customers by storing all data and interactions with customers.
4. Better Customer Interaction
To be able to manage profitable customer relationships, interactions with customers must be well established. Understanding customers as in the first principle above can help build better interactions.
The use of social CRM that can integrate social media with CRM applications will make it easier for businesses to have better interactions with customers.
5. Handle Each Customer Differently
Every customer is different, and every need counts. The same strategy may not necessarily apply to different customers.
The strength of this basic CRM principle lies in the potential to optimize the value of each customer relationship through different treatments.
Segmenting customers can be a customer relationship management strategy that can optimize your business value.
This can not only increase sales, but also build customer loyalty.
6. Focus on Sales, not reducing costs
One of the pitfalls in business is overusing the discount concept. Providing discounts is indeed one of the most effective ways to attract customers. Because who doesn’t love a discount?
This can be done for customers who are making purchases for the first time, or at certain moments. But, don’t keep giving discounts until you have to cut the cost of your product/service.
Providing discounts can increase sales temporarily, but nothing can replace the importance of customer relationships and maintaining them.
Businesses can continue to generate income by providing good customer service and proper marketing.
7. Balance between the desires of your customers and your business
Delighting and satisfying customers is one of the goals in business. However, don’t let this create a conflict of interest for the business which results in losses.
Businesses must be able to improve quality while still providing good service to customers. Thus, customers can help increase your sales and revenue.
8. Share the value of CRM to all employees
The company must ensure that every employee has the same vision, not just the sales and customer support department . This is very important for making a CRM implementation successful and effective.
To do so, the basic principles of CRM must be introduced to all employees so that they know the best way to have an effective customer relationship.
9. Do something about your findings
After obtaining all the data needed from the CRM software , use the data to improve your business. One way that can be used is to gain customer insight through social media and ask about their needs.
10. The key is simplicity
Customers want their shopping experience to be as simple as possible. This principle can be used to identify how to use CRM to make the customer experience even better.
11. Choose the Right CRM Provider
Choosing the right CRM provider is critical to the success of your business.
Choosing the wrong CRM software will result in investment losses in terms of cost and time for your company. Make sure to choose CRM software that meets your company’s needs.