9 Best Benefits of CRM Software

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Rohit Rajpal

Senior Writer:

green tickDate: October 20, 2022

CRM software can prove very beneficial for your business both in the short and long term. In fact, statistics show that organizations that leverage CRM see the following benefits:

  • 29% increase in sales
  • 34% increase in team productivity
  • An average of $8.71 return for every dollar spent
  • 8-14% reduction in the sales cycle

When you choose the right type of CRM, you will also enjoy other benefits, such as better sales forecasting, improved team collaboration, and a better understanding of customers. 

Let’s understand this in detail.

Benefits of CRM for Businesses

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1- Maintain a Centralized Database

No matter how widespread your business is or how broad your product catalog is, CRMs allow you to create a centralized database to keep your customer information. This supports cross-team access and the ability to manage all the data from one place. 

It also prevents sales representatives from spending too much time digging through files and records to find the information they need to do their job efficiently.

2- Facilitates Better Customer Service

While modern CRM software has numerous functions, it was primarily created to improve business-customer relationships, which is still its main benefit. A CRM captures important customer information like their name, contact details, purchase history, and previous interactions. 

As a result, your support staff has access to all the information they need to provide a more personalized service to every individual, thereby boosting customer satisfaction. 

3- Automates Repetitive Tasks

Once integrated with third-party business tools, a CRM can automatically capture data from across the organization. This eliminates manually logging emails, calls, meetings, and interactions.

CRM processes that you can automate

Here are some things you can automate using your CRM:

  • New lead follow up
  • Email drip campaigns
  • Appointment scheduling and rescheduling
  • Assign new contacts to owners
  • Create tasks in pipeline stages
  • Lead scoring
  • Ask for a review 
  • Customer self-service
  • Case routing
  • Wish customers on their birthdays
  • Send payment due reminders

4- Helps Enhance Your Marketing Performance

A CRM centralizes all your data, making it easier for marketers to understand what’s working and what isn’t. They can also interpret buying patterns and customer behavior from the data. 

For instance, marketers can identify the key traits of leads that convert. It could be their geographical location, job title, company revenue, etc. They can then use these insights to target a specific group of prospects to improve the lead quality.

5- Improves Ability to Cross-Sell and Upsell

Increasing the company’s bottom line is not only about acquiring new customers. It is also about selling new products to existing customers. Since CRM software gives you in-depth information on a customer’s purchasing behavior, you can intelligently cross-sell products around their interests. 

Coupled with the insights into how they use your products, you can also identify customers who are more likely to invest in your higher-end products. This gives you the ability to increase your revenue from each customer.

6- Provides a More Accurate Sales Forecast

The key to reaching sales targets is planning strategically and making necessary optimizations. However, that is only possible if you have access to relevant data. That’s where a CRM platform can help. 

The sales forecasting feature in the CRM software helps you accurately forecast future sales growth based on the leads and potential deals in the pipeline. It also considers past performance when creating forecasts, further improving its accuracy.

How does sales forecasting work in a CRM

( Source: zoho )

This data helps sales managers create realistic expectations (and targets) for upcoming months and adjust the sales strategies accordingly.

7- Enables Better Segmentation and Personalization

No one wants to do business with a company that sends emails or messages that don’t interest them. However, you can only tailor your messages when you know whom you’re addressing and what they expect from you. 

Thanks to segmentation options in CRM, you can easily segment contacts into various groups based on their demographics, interests, browsing habits, or other criteria. 

This allows you to run specific marketing campaigns (and even account-based marketing campaigns), increasing customer engagement.

8- Improves Collaboration Within the Organization

As soon as you convert a lead, multiple people and teams get involved. For instance, the customer is assigned an account manager, the customer success team sends them emails to help them get the most out of your product, and the support team helps the customer with any problems they face when using the product. 

With a CRM, you can ensure seamless collaboration across teams by tagging and assigning tasks to specific people in the organization. This improves customer satisfaction as they get their issues solved quickly.

9- Makes Administrative Tasks More Efficient

As discussed above, CRM allows you to automate mundane tasks like data entry. It also helps simplify other tasks, such as recording conversations, saving contact information, and sending emails to prospects.  

This allows your employees to spend more time working on things that require human attention, such as crafting personalized messages and nurturing prospects.

Wrapping Up

A CRM system centralizes all information regarding contacts (customers and prospects), helps provide better customer service, improves the ability to upsell and cross-sell, and creates more accurate sales forecasts.

Here you can also read in detail, how you can use CRM software in real-world scenarios [Given with the examples].

 

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