| CRM is fast transforming into a tool of necessity and | | | | For small business owners who have yet to invest in |
| of differentiation amongst businesses competing in a | | | | CRM, they need to know how CRM actually works. |
| highly competitive environment. The potential benefits | | | | Briefly, CRM can help them to track front-line sales |
| of CRM are very attractive. It allows companies to | | | | and marketing data in real time across their entire |
| maximise existing resources to keep track of critical | | | | business operation, and store them into a historical |
| market trends and growth opportunities in real time, | | | | database for further analysis in order to identify |
| through a wide array of functions and features such | | | | trends. Various functions can also allow businesses to |
| as tracking and analyzing sales-related data such as | | | | automatically track customer preferences, forecast |
| customer purchasing patterns, and buyer | | | | sales, and customer response to different service |
| demographics and geographic location. | | | | solutions. |
| Statistics from the U.S. Census Bureau showed that | | | | The automated features of a CRM system means |
| global spending on CRM systems grew over 45% | | | | less reliance on direct labor and improved efficiency, |
| between the years 2001 to 2005, from a reported | | | | and thus, makes it a better investment over time as |
| $13.48 billion to $19.61 billion. This upward trend was | | | | it has the ability and potential to pay for itself many |
| rooted in the growing implementation of new CRM | | | | times over. By keeping track of what works and |
| technologies in medium-sized companies. | | | | what does not in real time, small businesses are then |
| For small businesses, CRM can be just the tool they | | | | able to increase their responsiveness to customer |
| need to identify, attract and retain customers. The | | | | demands and thus, improve the overall level of |
| good news is that the growing market for CRM | | | | customer service and the customer's perceived value |
| solutions and the increasing competition among CRM | | | | of their experience with the company. |
| vendors has translated into more affordable and | | | | Being able to familiarise themselves with a customer's |
| flexible options for those who are seeking to | | | | background before pitching a sales proposal to them |
| increase spending on CRM. CRM vendors have | | | | gives sales personnel an opportunity to engage with |
| responded to increasing market demand by offering | | | | the client on a deeper level as they are enabled to |
| cost-effective and customizable CRM applications | | | | quickly establish close rapport, having understood the |
| which help small business owners with limited | | | | customer's history and needs. This can translate into |
| resources to more effectively target new clients | | | | a valuable and long-lasting relationship with the |
| while improving the management of their current | | | | customer which is essentially what all business are |
| customer base. | | | | trying to achieve. |