In conditions of market competition, the task of customer relationship is crucial to maintaining the viability of the company. The crm system is essential here. Obviously, the cost of attracting a new customer is five times greater than the retention of an existing one. Long-term and predictable relationships with customers allow the company to reduce costs by:
- Effective business planning
- Reducing the cost of attracting new orders
- The ability to quickly respond to changes in customer preferences
- Customer loyalty, as a result, lower costs for attracting new customers
These reasons were responsible for the rapid growth of the CRM market for customer relationship management systems both in Russia and globally.CRM system (Customer Relationship Management) is a business strategy aimed at increasing company profits by increasing customer loyalty at all stages of work. You can go for the best faculty management system here.
The main advantages of using a CRM system:
- Secure storage of strategic information through built-in backup tools.
- Search tools and information storage, provide quick access to all databases in the enterprise;
- Increasing the transparency of sales, marketing and customer service processes.
- The adequacy of management decisions due to the availability of complete, timely and structured information.
- Decrease in dependence on personnel, as customer information does not go away with the manager, but remains in the company.
- Quick staff adaptation due to the transparency of the main business processes and the availability of information.
- Increasing competitiveness due to more rapid response to changes in the business environment;
- Increase in company capitalization: in Russia, the introduction of CRM, on average, raised the company’s value by 18%.
The main purposes of the system:
- Sales growth
- Increasing the number of repeat sales
- Increasing customer loyalty
- Reduce the cost of attracting new customers
- Improving the quality of marketing campaigns.
- Many business problems are intractable without the use of CRM.
- For example, the loss of a client in the case of a manager leaving to competitors.
There are two ways to solve it, “depersonalizing” the relationship when a personal manager is not assigned to the client, and building multi-level relationships when there is interaction not only through the customer’s supply chain supplier’s manager, but also other relationships. For the faculty management this is important.
The second way is more like the customer, because keeps communication at the “human” level. On the other hand, with the departure of the manager, some of the connections collapse, and the likelihood of retaining the client increases significantly. A similar interaction structure is difficult to implement without automation: it requires a lot of time. For example, the system reminds the director that the head of the key customer has the birthday of the child, then, on the one hand, a short call will not take much time, but, on the other hand, it will work much more on developing relationships than a letter or a gift parcel.
Automation of relations with customers allows you to combine a formal approach and an individual attitude to each client. The Pareto rule says that 80% of profits come from 20% of customers. Retention of an additional 5% of customers can give the company an additional 20% profit. Attracting new customers to obtain such a profit would require costs equal to the costs of retaining existing customers. CRM system is that way that allows your company to look confidently into the future, despite all the changes in the business environment.