The customer relationship management field has come a long way since the days of Rolodexes and index cards, but new technology and advancements can often require a lot of catch-up work to make sure you’re getting the most out of your systems.
CRM data can be leveraged to great effect when utilised properly; however, CRM data misuse can lead to costly waste and enormous headaches.
CRM isn’t a magical remedy for sales and marketing. CRM systems require time, effort and proper management to be anything more than a glorified spreadsheet, but with effective utilisation, CRM data can be a real workhorse for generating and converting leads while retaining and upselling current customers.
Here are seven things to avoid in order to capitalise on your CRM solutions:
1. Ignoring past successes.
You’ve closed on all kinds of deals in the past and tracked your progress the whole time. You’re sitting on a goldmine of data of your past closed sales, so don’t let that all go to waste. Analyse the steps that lead to success and use that information to refine and repeat the process. Capitalising on what works while avoiding what doesn’t will improve your conversion rates and reduce the time it takes to make a sale.
2. Making overly generic records.
Customers are more than just dollar signs, and they appreciate being treated as such. You should be utilising your CRM database for personalisation so that you can relate to each customer on a deeper level and create true connections. Over 70% of consumers prefer doing business with companies that utilise personal information in their shopping experiences. These personal connections lead to more business and a higher level of commitment to your brand.
3. Missing out on upselling opportunities.
All that CRM data you have on current customers can prove invaluable in predicting the customer’s needs and being prepared to meet them. You can find out the specific products a customer has purchased in the past and use that to tailor more individualised offers and pitches for them. Use that detailed data at your fingertips and create compelling promotions tailored for invested customers who have used similar services of products in the past.
4. Failing to learn from your lapsed customers.
Your CRM system keeps track of current and past customers. Avoiding customer churn – the loss of customers – can drastically increase profits. Learn from mistakes made in the past and track the trajectory of churned customers to find trouble areas that you can improve on to retain current customers that might be on the fence.
5. Wasting time with unnecessary data.
Not all information is created equal. While it’s important to have detailed information on your past and current customers, some data is just a waste of your and your customer’s time to provide and track. Consider each field you track and ask yourself whether you actually utilise that data or if it’s just clogging up your system and bogging your customers down with overly lengthy forms to fill out.
6. Ignoring your top customers.
The lion’s share of your profits can often come from a rather small percentage of your customer base. Some customers are worth more than others and should have more attention dedicated to them because of this fact. Make sure you aren’t spreading yourself too thin by catering to everyone. Pay extra attention to the big spenders so you can keep them coming back for more.
7. Neglecting your CRM system.
Your data and systems require maintenance and management in order to provide ongoing benefits. Don’t let your system fall into disarray by making sure data is relevant, current and accurate. Having missing or inconsistent data can be costly especially if it goes ignored. Keeping on top of your system organisation will ensure you get the most out of your CRM investment.
Effective CRM data usage can help propel your company to soaring heights, but mismanagement can bog you down in a swampy wasteland so make sure you’re getting the most out of your systems. Vigilance and dedication go a long way in avoiding CRM data misuse and maximising your organisation’s productivity and efficiency. Use these tips to make the most of your CRM investments to drive profits and impactful customer relationships.