Few things are more top of mind for small businesses today than technology and customer relationships. Small Businesses typically boast close relationships with their customers, but as economic pressures persist, customer expectations evolve and competition intensifies, those relationships are being tested. As consumers become more considered in the businesses they engage with, creating and cultivating relationships takes on added significance.
The hub of any contemporary business is a Customer Relationship Management (CRM) system, which enables businesses of all sizes to streamline customer interactions, provide personalised – and, therefore, more effective – communication, and turn that into stronger relationships and customer loyalty.
According to research, an estimated 90 per cent of businesses with 11 employees or more have a CRM, but that figure drops to just half of those with 10 or fewer. If your small business is focusing on customer relationships in 2024, but haven’t yet adopted a CRM, here’s how it can benefit you.
Centralised customer database
Gone are the days when a small business’s customers were stored in a rolodex or spreadsheet. A CRM system enables a business – whether they’re a tradesperson, an accountant or a retailer – to store and centralise their customer data. Rather than doing so in siloed systems, everything is available in a single, accessible database, which every member of the team can use to access real-time customer habits, histories, preferences and interactions, from one centralised place.
Automating routine tasks
One of the most effective, powerful features of a CRM system is its ability to automate processes and boost efficiency. Routine tasks like sending follow-up emails, scheduling appointments, and issuing reminders are essential, but very time-consuming. For example, when a new lead enters the CRM, the system can automatically assign it to a specific team member and schedule a follow-up or consultation. Every lead and interaction matters today, and a CRM ensures no lead is overlooked and no routine or repetitive process is a burden. When automated, it frees up more time for a business to focus on more strategic or revenue-generating tasks.
Improving personalisation
Today, consumers want personalised recommendations, experiences and communications from businesses – not to simply receive the same thing as a thousand other customers. A CRM enables small businesses to segment their customer base, based on common traits or needs. By analysing customer data, businesses can identify specific groups within their audience – for example, repeat customers, big spenders, or those who requested a consultation but didn’t make a purchase – and tailor their marketing accordingly. Personalised emails and targeted offers, which resonate with specific segments, can increase engagement and improve conversions.
Enhancing sales pipelines
For small businesses, irrespective of the nature of your product or service, every sales opportunity matters; especially today, as economic pressures persist. Zoho CRM, for example, contains comprehensive tools to track and quantify leads, manage the sales pipeline, and even analyse performance. As a result, teams can monitor the progress of any conversation, identify – then remove – potential bottlenecks, and even forecast future sales trends based on historic patterns. And through analytics and reporting, small businesses can refine their approach as their business needs or external factors change. After all, customer retention is an iterative, always-on process, not a set and forget.
Ultimately, today, few things are more important for small businesses than fostering loyalty. Without a CRM strategy, SMEs are leaving relationships and revenue on the table. By centralising customer data and communication, automating time-consuming tasks, improving personalisation and optimising the sales process, a CRM enables you to turn customers into evangelists, retention into revenue and your small business into a big success.
