How CRM is important for SME's
Headquartered in Gurgaon, Cubastion Consulting has been highly-acknowledged as a focused, specialized and a reliable CRM consultancy amongst its customers. Founded in 2006, the platform has been instrumental in handholding its customers in every step of a CRM program life cycle, right from framing processes to their implementation to subsequent support.
To succeed in the world of e-business, increasing number of companies are adopting business strategies that focus on customers’ behavior. To optimize the value of the current & prospective clients in the long-term, CRM (Customer Relationship Management) is being progressively adopted by organizations as an essential strategic tool to succeed in the e-Commerce world.
CRM is essentially a business approach to understand and thus influence the customer behavior through meaningful interaction and improving customer relations. In the past few years, CRM has developed as one of the most important and speediest growing software with the investments in the segment exceeding $7 billion, as per a survey. CRM aims to transform the companies into customer-centric organizations by conducting client-specific business processes and centering on client needs. Thus a CRM model helps in turning the relationship with the customer into profitability and gaining a competitive advantage for the business.
Infusing a CRM Model within SMEs
Small & Medium Enterprises (SMEs) are functioning in the technological era of sophisticated and smart customers, stiff competition against big and same sized organizations and rapidly changing preferences. Acquiring and retaining new and the current customers alike are crucial for any SME. In India, SMEs cater to 8000 different products and comprise of approximately 40 percent share in overall industrial output.
SMEs are considered to be the drivers for growth, innovation and competition in most industry verticals. Small businesses have fewer than 100 employees with a yearly revenue falling anywhere between $20 million to $100 million, while a medium business has an annual turnover between $100 million to $500 million and fewer than 1000 workforce. SMEs require a cost-effective CRM solution that streamlines their business model & IT structure. The CRM market for SMEs is growing by 21 percent per annum. CRM can benefit the SMEs by boosting the sales performance as well as retaining the current clients.
SMEs majorly focus on direct revenue per customer and less on the customer’s behaviour and satisfaction. Though SMEs are burgeoning at a rapid pace, they lack in the structured & systematic use of information, mostly due to the limited resources. Customer-focused and highly flexible e-business models can help them to gain an edge over the competitors.
Thus, technology-based CRM is the quickest strategy that can help SME to compete with bigger businesses and extend to international markets. Three million Indian SMEs account for 50 percent of Industrial output, which signifies a huge potential and scope for using CRM solutions.
As per a survey, about five percent of Indian SMEs have adopted CRM and fewer than 20 percent of global SMEs have CRM implementation in their business model.
Into the Perks
Using advanced information and relational technologies, CRM benefits companies by enhancing their customer acquisition, customer retention and customer profitability via rationalized & integrated customer-oriented processes. CRM aids businesses by creating effective business predictions and successfully changing the business scenario by continuously maintaining and developing the association with customers. A streamlined flow of information helps in providing value added personalized products & services and give a true picture of the revenue generated.
CRM software can be broadly classified into two segments. The first part emphasizes on customer interaction and applications for customer care, service and marketing automation. The detailed and enhanced knowledge about the present and potential clients helps to form a personalized rapport with the clients.
The second segment of the CRM software analyses the customer behavior in detail and comprises of data mining and reporting strategies. This enhances the understanding of customer preferences and concerns. It helps to measure the customer satisfaction and customer's potential to purchase. CRM software helps in gaining thorough understanding of the historical trends of customers which assists in better decision making and enhancing the product. The businesses can accordingly plan sales & marketing strategies in a more targeted and systematic way and optimize the customer’s loyalty and life cycle with the firm.
Thus, sustainable customer relationships play a significant role in attaining growth and success in today’s competitive business ecosystem. An effective CRM model is a powerful tool in this direction that can be implemented to escalate the business trajectory.
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Cubastion is among a very small number of specialized Siebel CRM Oracle Gold Partners in SME.