CRM software has proven a valuable and efficient tool and has been proven to reduce production costs for businesses. CRM technology allows companies to manage, enhance, and store information to build customer relationships. In 2022, this technology was at the top of the list of tools that saved companies money.
CRM software collects data to give business managers insight into the company’s performance. For example, CRM software provides information on sales processes and forecasts future sales. This data collection is a part of an effort to establish, build, and maintain positive customer relationships.
CRM software has become a mainstay in the business. For example, 91 percent of companies with 10 or more employees integrate CRM software into their platforms. Research also shows that companies integrate this technology within their first five years. Additionally, sales teams use CRM software 80 percent of the time, marketing 46 percent of the time, and customer services 45 percent of the time.
In June 2021, experts projected the CRM software market to be worth $128.97 billion by 2028, which shows a compound annual growth rate of 12.1 percent in seven years beginning in 2021. While the figures reflect that more companies are adopting this technology, does CRM software reduce costs? One 2014 study reported that, on average, CRM software returned $8.71 for every dollar spent. Today, some experts say these savings are probably closer to $30.48 per dollar spent.
CRM software helps sales professionals anticipate the needs of customers. Sales representatives also benefit from converting more leads into sales. CRM allows companies to embed blogs, articles, and social media posts, which is a more efficient way to reach out to customers. In the old days, salespeople sat in trade show booths to recruit customers, which was not nearly as efficient as simply harvesting data from an online source to contact customers.
CRM software also makes communication faster with customers. Many programs allow users to craft customizable emails, templates, quotes, invitations, newsletters, and documents. Users can draft emails to be sent days, weeks, or months in advance.
CRM software stores data in a central location so every department can access the information. Therefore, communication among departments becomes easier because everyone has the same information. CRM also helps companies retain customers. Stored data converted into insights gives companies the advantage of anticipating issues and finding solutions before the issues become problems, a strategy for holding onto customers.
Finally, CRM artificial intelligence and automation tools have been shown to boost productivity by 29 percent, which saves companies money in hiring people and buying tools. Further, CRM reduces errors in addressing customer concerns and executing effective marketing strategies.