Many SMEs struggle to decide what type of CRM system to select. They may not have the budget to purchase one of the high-end, well known products such as Salesforce – where then do they go? Every SME company should understand the importance of CRM so it can collect data from its customers and prospects and use that information to benefit it sales, business strategy, and company development.

A CRM (Customer Relationship Management) is a system which helps you to manage your key relationships with your customers and prospects.

Here are some of the main reasons, why every SME should have a CRM system to allow them to do that.

1. Consolidate your customer and prospect information in one place

By having all your customer and prospect information in one place, you have the ability to see your organization’s key asset in full. Customers and prospects are your most important resource, the lifeblood of your business.

2. Plan both individual and group calendars

By recording all your daily actions with your customers and prospects, such as calls, appointments, promotions, emails you will have the ability to prioritise your sales effort. Let the system generate a list of daily tasks to perform: who to call, who to send an email, or make an appointment.

3. Be comprehensive in your data collection

Record all relevant data in the CRM. You can then analyse each type of customer and prospect you are trying to attract. Study and analyse your data to identify how best to target your sales, promotions and communication methods.

4. Develop a targeted marketing campaign

Target your efforts where they will yield the best results. Use your CRM to offer the right product or service to the right customer at the right time and for the right price. Remember your CRM information is the key for managing and choosing the right strategy for long term development through proper targeting.

5. Customer support

A CRM system can facilitate the management of your relationship with your customers and prospects. Effective data management is crucial. Ensure your CRM allows you to link related information, such as emails, notes, tasks and documents. All of this information should be centrally filled in your CRM with immediate access to everyone who uses it.

6. Understanding the demand cycle

By knowing the demand cycle of your customers you can create special promotions simply by applying what you already know.

7. Attract your customers

Perform a detailed analysis of your customers and gather the key information to close sales, make appointments, do promotions or invite them to your current events. With your CRM you can create a profile of your business to attract future customers.

8. Analyse your results

With CRM you have immediate access to a wide range of statistics, results of sales campaigns and the behaviour of your customers and prospects. Record the outcome of calls, appointments, emails, closed sales, prices in progress and even cancellations. The CRM’s aim should not only be to store the information, but should identify patterns of buying behaviour of your customers and prospects. If you know this information, you can anticipate their next purchase and offer them some special incentivas.

9. Develop customer loyalty

Keep in constant communication with your customers and identify what issues keep your customers loyal.

A CRM is a tool that facilitates your most important business relationships. Your CRM system should always define your key contacts and what key data you should know about them. Use that information to keep your communications focused on what is important.

All your key competitors will have a CRM system. To outperform them so must you.