Reasons why Small and Medium Enterprises (SMEs) need CRM

By April 6, 2020 Blog, CRM

It is increasingly becoming clear that Small and Medium Enterprises (SMEs) need CRM or adopt apt customer relationship management because of the factor of life that is change.

Different businesses have different needs, especially when it comes to their size. Generally speaking, the larger your business gets, the more features you’ll need and the higher the requirements for the solution performance become.

CRM software for small businesses usually means a lightweight solution containing only the features needed by the business and designed for a small or midsize customer database.

A lot is bound to happen. The company won’t remain the same at any point. Clients may either increase or reduce. Sales may easily follow the same trend. Misalignment between corporate revenue targets and their salespeople’s commission policy. A successful small business doesn’t always remain small. These are some of the indicators that SMEs need CRM if they are to be effective longterm.

According to SalesForce,

Recent studies show that companies with a fully utilized CRM system can increase sales by 29%”

Why SMEs need CRM

It is highlighted above why SMEs need CRM but how about we delve deeper into the reasons for it to be so.

1. Business Growth

The primary objective of any business starting up would be to succeed and grow in the long term. And that is the nature of life. You will go through a number of changes to get there. You can only be able to handle a limited number of clients as regards communication and customer data, on top of leads.

The more customers you have, the more workload your employees will have to deal with. You will need to hire new employees which means increasing labor costs, renting a new or bigger office, acquiring new equipment, etc. This is going to increase your operational costs. Alternatively, you can look for more cost-efficient optimization options – and implementing a CRM solution is one of them. This is a primary reason for SMEs to need CRM because the various software platforms will let you remotely manage huge chunks of data.

 

Infusionsoft Dashboard

Ramon Ray, the founder of Smart Hustle Magazine and small business evangelist for CRM system Infusionsoft, said in a phone interview with Small Business Trends,

“The only way you do not need CRM is if you have a very, very small business with five clients, maybe ten. Then you may be able to get by with something like Google Contacts. But as you grow, you’re going to need something more sophisticated.”

 

2. It saves time and fosters organization.

At the start, you feel invincible as the small business owner managing your company’s task management systems, business emails, calendar system, but in reality, unless you organize all your information in one system. This sounds beautiful but is wrong. All SMEs need CRM because CRM integrates all these activities and much more in one easily maintainable and managed place, which can help you learn things about your business you never knew before. Hence, understanding the small business’s need for CRM, and being organized will never ever be a detriment to the success of your business.

Basically, A CRM system unifies customer information among your employees as efficiently as possible, in real-time. Your team won’t have to waste countless hours looking for contact information, lead information on potential customers, and the like.

3. Client Management

The greatest asset that is going to make or break you are the clients. The way you handle the few gives an indicator of how the handling will be if they increased.

Clients are all different with respect to their particular needs. And that is why SMEs need CRM to help realize these differences. CRM is a tool that provides more visibility into your client base. It helps small business owners to ponder on different strategies and tactics that are needed for formulating better plans and thereby break new grounds for long-term profitability.

CRM tools like Infusionsoft and Hubspot also give you easy ways to keep in touch with your customers or prospects via email. Keeping in touch regularly can help you keep your business at the top of customers’ or prospects’ minds, increasing your potential ability to sell to them.

CRM at its most basic level lets you see the statuses of your customers. SMEs need CRM for every time you make a call, contact the customer or your prospects and leads by email or SMS you can easily update all your customer-related information along with their current status in your CRM. This way by mapping your customer journey, you can avoid following up on cold leads and instead mature the hot ones.

4. Fixes shorthandedness

A lot happens in our lives. People move on to other ventures. Some do get sick, while others decide to take leave. Many more reasons can cause shorthandedness.

If someone on your sales team calls out sick or goes on a vacation, keeping track of his or her customer information can become a huge problem. Unless, of course, that employee spends a couple of days explaining everything to another employee and sharing all the important files. This is why SMEs need CRM tools from the get-go.  With CRM, your employees won’t have to waste their time on such an issue. The data to refer to would be in the system and easy to access to guide on a way forward.

5. CRM uses Social Data

Some CRM tools are even coming up with new and interesting ways of integrating customer data. Nimble, for instance, can comb through various social platforms to find relevant information about customers or potential customers. This lets you bring even more data into the equation, which could help you create even more specific groups of target customers or narrow down your messaging even further.

6. Track Profitability

CRM is a tool that can help ease-up the work of your accountants. Once you adopt a CRM like ConvergeHub, you need not worry about tracking your billing processes and instead concentrate on activities like strategizing on product discounts, client returns and shipping costs. Converged CRM platforms provide small businesses with a speedy bookkeeping system and can produce accurate financial reporting, which is a crucial process in the corporate value chain.

7. Everyone needs metrics

Do you remember how many successful conversions of your leads-to-customers you had in the past weeks or months? Can you provide a quick data of your conversion ratio or explain the most fruitful method that helped your sales reps to reach your customers? Metrics are critical for the growth of any business. You can always figure out these statistics to some extent using Excel formulas in a spreadsheet, but then again, the odds are high that you may make mistakes while calculating your result. Most people do. CRM software is capable of providing you instant metrics on several aspects of your business and generates reports which are specific to your needs.

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Conclusion

With CRM, there are very many options that can be adopted by SMEs. The bottom line is, SMEs need CRM to foster organization from the get-go and turn focus into what can make them grow and succeed in the long run