CRM Software should be a salespersons best friend. It doesn't matter if you're a small business owner, working in a large organization, or an independent sales rep, a good contact management software is a necessary tool for you to keep your pipeline organized and full of qualified leads. Most people confuse CRM Software with organizations trying to keep an eye on their employees by monitoring their behavior. While this is true in some situations, it's really the salesperson's best interest to use some sort of CRM Software to make their jobs easier. There is a big misconception about what makes a good salesperson. You have heard the term 'born salesman' and while that's true that some people are born salesman, most salespeople are successful because they follow systems and because their systems produce leads like clockwork. The only reason they are able to follow these systems is because they use software or some system to be able to follow up with prospects.
According to the National Sales Association, where sales occur in the sales cycle is as follows:
- 2% of sales are made on the 1st contact
- 3% of sales are made on the 2nd contact
- 5% of sales are made on the 3rd contact
- 10% of sales are made on the 4th contact
- 80% of sales are made on the 5th-12th contact
Do you find that shocking? I know the first time I sure did! Now think about your average salesperson who flies by the seat of his/her pants. Do you think if you place 1000 people in the top of your pipeline funnel with a goal of converting 5% of them to customers by the end of the year, do you think you'll be able to keep track of potentially 5,000-12,000 contacts throughout the year? Of course not! That's where CRM Software comes into place and why a salesperson is leaving money on the table if they don't use it. Great salespeople LIVE AND DIE by their systems. Want to know the even better news? Most salespeople have NO SYSTEM in place so they will likely stop after the first call. That means you will have the advantage over your competitors by staying in touch.
CRM software is an essential piece of equipment for any company or organization that wants to achieve the maximum return on their marketing, fully capitalize on their sales leads and prospects, and cultivate ongoing, lifetime relationships with their current and established customers. By integrating all data about sales leads, current customers, associated companies, and employees throughout the various departments, CRM software enables enterprises to seamlessly handle marketing, sales, and customer service as a single package. Simply put, it's a way for salespeople to make a plan and then work that plan!
Two fundamental elements of continued growth that many firms overlook are the lifetime value of existing customers, and the importance of retaining them. For most businesses and other organizations, the costs associated with the acquiring of a new customer or client are very high. In fact, for many companies, getting new customers is the single largest expense they incur. Convincing a skeptical public that your firm can meet their needs, and do it better than competing firms, is a tall order. Doing so requires spending large sums on advertising, branding, marketing, and a sales force. Most salespeople quit after the first contact, not because they don't want to follow-up, its just that they can't remember! So, knowing that it, over average, takes 8-12 contacts to close the sale, how much is a company wasting by having their salespeople do one call on a prospect when they KNOW it will take more. In contrast, your existing customers have already demonstrated a willingness to spend money on your product or service, and they are far more likely to do so in the future than someone who's never done business with you in the past.
Satisfied customers who return again and again to use a company's product or service are the foundation of a long-term future for any business. The key to retaining their loyalty is successfully managing your company's relationship with them, and CRM software is essential to this goal. By making each customer feel valued, and demonstrating respect for their decision to utilize your products or services, a bond of loyalty is forged which draws the customer back again and again. Automated customer relationship management software makes it much easier and simpler to manage contacts, inquiries, customer service requests, new orders, etc., from current customers. Besides customer retention, gains in efficiency from utilizing CRM software can also lower the overall costs of handling these various functions.
CRM software is not only employed for retention and handling of existing customers, but comes into play from the very first contact with the prospect, sales lead, or new order. By automating the process of funneling these contacts through the sales pipeline, the software streamlines the handling of these accounts and ensures that far fewer get lost in the shuffle of day to day business. Callbacks and new mailings can be scheduled and coordinated automatically, with much less risk of human error. Data from phone inquiries can becaptured and stored automatically. Customer order histories and
price points are stored for use in planning future marketing campaigns and for determining proper levels of customer support.
CRM software is not an option, but a necessary and integral part of any modern business that sees to maximize revenue and continue growing as a business. The right CRM tools can be the crucial tool that can enable a business to foster a more professional image. |
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