6 Important Questions You Must Ask Yourself Before Opting for CRM Software!

CRM Software

The CRM market is currently worth $52 Billion. According to a combined study done by Gartner and Grand View Research, it will be worth around $80 Billion in 2025.  

Customer Relationship Management (CRM) can be defined as a collection of activities, technologies, strategies, and procedures that companies use to curate interactions with customers throughout a customer lifecycle.   

Managing customer relationships is a tough job. It’s often likened to holding sand in one’s hand. It’s because like sand, consumer behaviour is slippery, ever-changing, and requires constant curation and management. The trope of “the customer is always right” is a product of such curation, especially under the purview of pre-sale support. However, the trope is too old now, like a lot of customer management techniques that have become obsolete over the years.    

To put it directly, the management of customer relationships must be approached innovatively. Customer Relationship Management Software solves that problem by delivering a single platform that can be accessed from anywhere, anytime. 

Customer Relationship Management software requires a sizable investment of time and capital. It’s better to know if you really need one and ask a lot of pertaining questions rather than waste resources. The first question to ask yourself in that direction is “Do we really need a CRM software?”

Do We Need CRM Software?

You’ll need CRM software if the following situations are affecting your business:

  • The sales lifecycle spans up to several meetings and calls.
  • The business serves products whose success requires after-sales support and yearly contract renewals.
     
  • The ticket size for the services or products you are offering is quite large when compared to its frequency.
  • You have a big sales team who bring a constant flurry of leads into the company. 
  • You want to systematise your organisation’s processes and establish a framework of doing business with customers.
  • You want to cross-sell and upsell your company’s products and services as your customers are making multiple purchases. 

When Do We NOT Need a CRM Software?

You will not need a CRM software if your business is really small and you have less than 5 clients. Other reasons for not getting a CRM include: 

  • More than 60% of your clients do not provide you repeat business.
  • When you own a single branchless shop and not a franchisee of stores. 
  • Your sales cycle is limited to less than three calls and a few emails.
  • When the ticket size of your services and its frequency is small 
  • The market is stagnant and you are convinced that the business will eventually cease to grow.

What Are the Benefits of Implementing a CRM Software?

The latest CRM software available in the market offer a range of services that make the daily affairs of salespersons easy. Some of the more notable benefits are: 

  • Customer demographics, purchase invoices, and conversations across multiple channels are available on a single platform.
  • CRM software aid in setting up a sales pipeline and automation of related tasks that use information fed into the CRM databank
  • Helps establish a series of imperative processes that a salesperson or Customer Relationship Manager can follow every day to maximise customer experience and sales. 
  • CRM software provide in-depth insights into customer behaviour from where consumer personas can be created. 
  • Easy automation of sales reports through the software saves a lot of time. 
  • Lead nurturing is improved through business intelligence extensions available with some CRM software. 

What Metrics Shall Be Tracked on the CRM system?

Based on the business structure, a company has to compile a list of parameters they wish to track. The must-have metrics include: 

  • Number of leads 
  • Number of Leads converted
  • Number of customers
  • Lead conversion rate 
  • Customer increment Rate
  • Rate of renewal
  • Customer retention cost 
  • Customer attrition rate 
  • Net promoter score
  • Business perception scale 

The metrics above can provide detailed insights into the customer relationship department of a company. They share important data points that help make data-backed decisions.  

Does the CRM Software offer Data Security?

Nowadays, CRM software encrypt communication lines and customer databases against misuse. A lot of them require two-factor authentications to access. If a CRM platform does not provide this basic security functionality, it’s not wise to invest in it. Advanced CRM platforms take the security a step further by putting everything on the cloud. There are also rumours of blockchain technology being applied, which make it impossible for data manipulation without prior authorisation from the administrator. 

Do We Need Third-party CRM Integrations?

Integrations add more functionality to a CRM software but it can potentially increase the CRM tariff as well. One has to decide which CRM software integrations will prove beneficial within a strict budget. Some examples of useful integration types are: 

  • Digital email and calendar platforms
  • Internal messaging module 
  • Instant facetime and call integrations
  • File sharing extension
  • Business accounts extensions
  • Marketing automation platforms
  • Live customer chat 
  • Email campaign planners 
  • Social media integrations 

Buying and implementing a CRM software system in a company is not an easy feat. It requires proper planning and commitment, especially when it comes to training employees to use the CRM software. This blog lists the most-asked questions which will bring clarity to your decision of adopting a CRM platform. If you have a question regarding CRM software, let us know in the comments!

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