Customer satisfaction is a term that has been used in various industries since the 1940s. It's important to know what this means and how customer satisfaction can affect your business.
In marketing, customer satisfaction refers to the level of happiness or contentment customers have with their purchase experience from start to finish.
Satisfied customers are more likely to return for repeat purchases and recommend you to others. A satisfied customer will also be more willing than an unsatisfied one to spend money on future products or services offered by your company. So it's important that as a marketeer, you not only understand the importance of customer satisfaction but strategies for achieving it too!
The customer’s perception of the supplier helps the customer choose among the supplier based on monetary value and how well the delivered products suit all the requirements.
The supplier’s services never diminish after the delivery as the customer seeks high-value post-marketing services which could help them use and customize the delivered product more efficiently. If he is satisfied with the post-marketing services, then there are good chances for suppliers to retain customers, enhance repeated purchases, and make good business profits.
What Is CRM?
CRM stands for customer relationship management. It's a category of integrated, data-driven software solutions that improve how you interact and do business with your customers. CRM systems help you manage and maintain customer relationships, track sales leads, marketing, and pipeline, and deliver actionable data.)
CRM solutions increase your profitability by streamlining administrative processes in your sales, marketing, and service divisions and letting you focus on building and maintaining the customer relationships that matter.
A strong CRM solution is a multifaceted platform where everything crucial to developing, improving, and retaining your customer relationships is stored. Without the support of an integrated CRM solution, you may miss growth opportunities and lose revenue because you’re not optimizing your operating processes or making the most of your customer relationships or sales leads.
Imagine misplacing customer contact information, only to learn that your delay resulted in losing your client to a competitor. Or, picture your top two salespeople pursuing the same prospect, resulting in an annoyed potential customer and some unfriendly, in-house competition.
Without a centralized and automated CRM system, your people can lose track of customer interactions and miss business opportunities.
12 Benefits CRM Systems Provide to a Business
Maintain A Centralized Database
CRMs allow your entire sales organization to keep all prospect information — over any duration of time — in a central database.
This allows for quick cross-team access and the ability to easily manage all information via a shared location. In addition, CRMs help reps avoid spending time digging through files and records to find the information they need about prospects to follow up and close deals.
Manage All Communication And Interactions With Prospects.
All communication, both internal (rep to rep) and external (rep to prospect), can be managed through a CRM.
This allows reps to track all parts of the buyer's journey, including every interaction, email, phone call, and more.
For example, your CRM will help a rep determine if and when they need to reach back out to a specific prospect. It will also help your reps remember whether or not they already sent a prospect the resources they requested.
Automate Data Entry
With a CRM, your team will never have to spend time logging emails, calls, meetings, and interactions — all of this information will be automatically collected and aggregated within the system.
Additionally, a CRM allows reps to update all deals by the stage they're in — then, the system will automatically handle the rest (e.g. weighting, summation, visualization), keeping this process as efficient as possible for everyone involved.
Be Reminded to Follow Up with Prospects
A CRM tracks all of your prospect activity, which helps your reps know when they need to follow up with specific prospects.
When reps are reminded about specific follow-ups, they're able to schedule their contact at a point in time when their support is most helpful to a prospect.
This way, reps increase the chances of them converting more of these leads into customers.
Organize Contact Data
CRMs allow your team to easily track every contact (and their related data), no matter their buyer's journey stage. For example, reps will be able to see if a contact visited your company website, downloaded content from the site, or spoke with another member of your sales team already.
Additionally, reps can log notes from their calls or email interactions with their contacts and leads. The best part? All of this information is always searchable within the CRM.
Segment Your Customers
Have you or your reps ever wanted to create a list of contacts to reach out to based on specific criteria? CRMs allow you to sort contacts by data that you've collected about them over time.
For example, a rep might filter by location, company size, or deal stage. This way, your team members will always maintain a clear idea of how to position outreach for each segment, increasing the probability of conversion.
Create Sales Reports
CRMs allow your team to collect and organize data about prospects and deals using reporting features such as sales dashboards and reports. These allow reps to better automate and manage their pipelines, deals, and contacts. They can also evaluate their personal performance and keep track of their goals and necessary work to reach their quotas.
Sales managers can use these sales reports to see how their team tracks quota attainment and review the number of closed deals. VPS and other organization leaders can also monitor the amount of revenue that's been generated.
Automate Forecasting For Your Sales Performance
The key to any successful sales organization is the ability to plan strategically and make informed decisions. With the CRM reports I just mentioned, you can pull in key metrics like monthly recurring revenue (MRR) and year-over-year (YOY) growth, making it easier for sales leaders to identify trends and develop performance-related forecasts.
Plus, CRMs allow reps and sales managers to see which activities and sources are the most profitable lead generators. This data helps team leaders create sales projections for upcoming months and adjust pipeline estimates as necessary.
Scale Your Sales Processes Over Time.
As mentioned, a CRM will provide your sales team with one place where they can keep track of leads, prospects, and customers over any duration of time. CRMs also allow you to review specific activities like emails, calls, and meetings booked.
Sales managers can then use this data to identify patterns and see which sales processes are working for their team and which ones could be improved — which is how your sales team can use information stored in the CRM to scale your processes as your business grows.
Ensure Team Communication Is Facilitated
Ensure effective team communication is facilitated throughout your sales and among reps with the help of the CRM. This communication is critical to maintaining a specific brand image among all reps who are interacting with prospects and ensuring reps are learning from each other and working together to reach quota.
With a CRM, your team can do this by tagging reps and managers members on specific deals they want to bring them onto. Sales leaders and reps can also use the system to reassign specific leads by clicking a button. Lastly, reps don't need to leave the system to write and send emails to team members to have these discussions — instead, all communication can be facilitated easily from within the CRM.
Keep The Same Software As Your Company Grows.
As your company grows, a CRM will grow with you — that's the beauty of this type of software. So whether it's tracking more leads, organizing more contact information, or recording a greater number of interactions with prospects, CRMs are meant to grow alongside your business.
And this isn't just true for your sales organization — your CRM can assist other teams within your organization as you grow, too. Examples include customer service and marketing — these teams can pull from your prospect information to contact them, personalize content for them, tailor CTAs and product details towards their needs, and more.
Make Administrative Tasks Efficient.
All of your administrative tasks — such as manual data entry, hunting for email chains, recording conversations, and saving contact information — will be simplified with the implementation of a CRM.
A CRM automates many of these tasks so reps can spend their time and resources on more impactful tasks. Even though administrative tasks might not directly impact revenue, they impact the schedules of members of your sales organization and how much time they spend on working on those tasks versus with leads and prospects.
And in case your sales organization needs additional convincing to adopt a CRM, here are five more statistics that further prove their value:
- The average CRM user adoption among sales reps is 73%, and the average ROI is 13 months.
- 91% of businesses with more than 11 employees already use a CRM.
- A CRM can help you increase sales by up to 30%.
- CRMs help you improve customer retention and satisfaction rates.
- CRMs improve data accessibility which shortens your sales cycle.
Components of CRM
At the most basic level, CRM software consolidates customer information and documents it into a single CRM database so business users can more easily access and manage it.
Over time, many additional functions have been added to CRM systems to make them more useful. Some of these functions include recording various customer interactions over email, phone, social media or other channels; depending on system capabilities, automating various workflow automation processes, such as tasks, calendars and alerts; and giving managers the ability to track performance and productivity based on information logged within the system.
- Marketing automation. CRM tools with marketing automation capabilities can automate repetitive tasks to enhance marketing efforts at different points in the lifecycle for lead generation. For example, as sales prospects come into the system, it might automatically send email marketing content, to turn a sales lead into a full-fledged customer.
- Salesforce automation. Salesforce automation tools track customer interactions and automate certain business functions of the sales cycle that are necessary to follow leads, obtain new customers and build customer loyalty.
- Contact centre automation. Designed to reduce tedious aspects of a contact centre agent's job, contact centre automation might include pre-recorded audio that assists customer problem-solving and information dissemination. Various software tools that integrate with the agent's desktop tools can handle customer requests to cut down on the length of calls and simplify customer service processes. Automated contact centre tools, such as chatbots can improve customer user experiences.
- Geolocation technology, or location-based services. Some CRM systems include technology that can create geographic marketing campaigns based on customers' physical locations, sometimes integrating with popular location-based GPS (global positioning system) apps. Geolocation technology can also be used as a networking or contact management tool to find sales prospects based on a location.
- Workflow automation. CRM systems help businesses optimize processes by streamlining mundane workloads, enabling employees to focus on creative and more high-level tasks.
- Lead management. Sales leads can be tracked through CRM, enabling sales teams to input, track and analyze data for leads in one place.
- Human resource management (HRM). CRM systems help track employee information, such as contact information, performance reviews and benefits within a company. This enables the HR department to more effectively manage the internal workforce.
- Analytics. Analytics in CRM help creates better customer satisfaction rates by analyzing user data and helping create targeted marketing campaigns.
- Artificial intelligence. AI technologies, such as Salesforce Einstein, have been built into CRM platforms to automate repetitive tasks, identify customer-buying patterns to predict future customer behaviours and more.
- Project management. Some CRM systems include features to help users track client project details such as objectives, strategic alignment, processes, risk management and progress.
- Integration with other software. Many CRM systems can integrate with other software, such as call centre and enterprise resource planning (ERP) systems.
Frequently Asked Questions
CRM systems compile customer data across different channels, or points of contact, between the customer and the company, which could include the company's website, telephone, live chat, direct mail, marketing materials and social networks.
A CRM database is a customer relationship management tool that collects every interaction that a business has with its customers in one place and then makes all of that information available to the company in one customizable dashboard.
While the entire organization will come to rely on both ERP and CRM systems, the fundamental difference between ERP and CRM is that ERP is primarily for financial data and the finance department, while CRM is customer data used by the sales and customer service departments.