This article was written by Michelle Weger.
You don’t need a CRM.
At least, you don’t need a CRM if you don’t like making money.
Or if you enjoy spending hours upon hours every week pulling reports, tracking down customer information, and doing mundane, repetitive, automatable tasks.
Or maybe you woke up this morning and thought, “You know what, I don’t want to scale my business anymore.”
If that’s the case, this article probably isn’t for you.
Otherwise, you need a CRM.
What is a CRM platform?
CRM stands for Customer Relationship Management. It refers to a type of software that keeps all your data in one place, making it easier for you to… well, manage your relationships with your customers.
You may also hear CRMs referred to as mailing lists. If you’re using something like MailChimp to send out newsletters to your subscribers, that is a type of CRM.
Does your business really need a CRM?
I’ve talked before about the importance of having a mailing list, why you shouldn’t market only on social media, and even what CRM or email list software is best for your business (and yes, sometimes the free option is the best one!).
Your mailing list is one of the best marketing tools you can get, so that alone is reason enough to have a CRM.
But your CRM can do far more for you than just send emails.
What does CRM software actually do?
Even if you’re just using your CRM as a mailing list, you’re capturing invaluable data:
- How many subscribers you have
- How often they’re opening – and clicking – on your emails
- What time of day they’re interacting with your content and your website
- How engaged your audience is
And depending on how your CRM is set up, you could be capturing even more data if it’s integrated with your website:
- How often certain customers are ordering
- How long they go between orders
- How much they are spending with you
Having that data is useful for making strong decisions about your business, but the true value of a CRM lies in the middle of the acronym: relationships.
A good CRM lets you better connect with your customers and nurture those highly important relationships in a more efficient way. Good automation is where a CRM can truly shine. Many CRMs allow you to:
- Set up automated follow-up emails after a customer orders
- Reach out to customers who have abandoned their purchase
- Create personalized campaigns to foster relationships with your leads
… and far more.
Above all, customer satisfaction is imperative when it comes to growing your business.
It costs far more to gain a new customer than to retain a loyal one – up to five times more, for some businesses. And part of nurturing relationships with your loyal customers is letting them know about things like upcoming sales and other exclusive information, meaning they’re bringing more money into your business.
So what is the value of having CRM software?
- More valuable data
- More customer retention
- More time saved with automated tasks
- More sales from an engaged customer base
… I’d say the value of a CRM is pretty obvious.