Customer Relationship Management & Great Advantages That Should Never Be Overlooked

What are the advantages of customer relationship management in business? Originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.

Customer relationship management is one of the most important aspects of business in 2020, and it’s likely that this trend will continue to develop in the future. The importance of CRM continues to grow, with more and more companies understanding that getting their customer relationship management practices in place is the only way to maintain their competitive advantage and keep prospering.

However, there are still a lot of businesses that are yet to realize the importance of the concept. Here’s what they’re missing out when underestimating customer relationship management:

It helps you to build a robust connection between the business and its customers. By implementing CRM into your business model, you ensure that your customers connect with you and the two of you create a strong relationship together.

• It fosters customer loyalty and customer retention. Apparently, it costs 5 times more to attract new customers than it does to retain the already existing ones. Good customer relationship management is one of the best ways to ensure your customers stay choosing you over your competitors. Partially, this is due to the fact that the two of you have established a relationship (we tend to be more loyal to the individuals and businesses we trust and have close ties with). Partially, it’s because customers value good attitude towards them and can view your CRM efforts as a great added value service to accompany the products/services you sell. In turn, this minimizes customer churn and increases the customer lifetime value.
• It allows better personalization and, therefore, improves customer satisfaction. If you are a CRM adept, you know your customers better – you keep all your interactions recorded and can easily access that data. Being on the same page as your customers and knowing who they are is a sure way to target your communication more efficiently. Personalization = better customer satisfaction.
• It raises brand awareness. The business practicing customer relationship management, can enjoy better brand awareness because of the word-of-mouth marketing effect. If your customers are satisfied, they’ll recommend your business to their friends and colleagues.
• It generates more leads and improves sales. The more people know about you, the more are likely to become your leads!

Contributed by Andrei Petrik, CEO & Co-Founder at NetHunt (2015-present)