CRM is more than an IT Solution: The Use of Data for an effective Customer Strategy
Why a CRM deserves more Attention
CRM is often associated with purely technical and IT-related aspects, and the responsibility for implementing and managing these systems is often assigned to the IT department. But in reality, a CRM system is much more than just a technical solution. Rather, it functions as a central tool that supports companies in structuring, optimizing and partially automating their customer relationship management. Everything that is set up in the system reflects the real business, such as a sales process.
It is therefore essential that the business owners - i.e. those responsible for sales, marketing and service - play a central role in the introduction and management of a CRM system. However, they are often the ones who do not see themselves as responsible for maintaining the CRM - along the lines of «What do I have to do with maintaining the data?». In the following, we explain how you can strengthen your business with a CRM and why it should actually be of interest to all employees with customer contact.
Customer Management as 360° View
In today's digital era, customer relationship management systems play a crucial role for companies of all sizes. But what exactly do we use these systems for? The goal is clear: we want to make informed decisions based on extensive data analysis. And we want to carry out targeted actions automatically in order to address customers individually and set ourselves apart from the competition. To do this, it is helpful to have a 360° view of customer management.
A Guide to using CRM: Data as the Key to Success
Step 1: Collect data, but carefully
The first step in using a CRM system is to collect comprehensive data on all customer relationship areas - marketing, sales and service. However, the rule of «quality over quantity» clearly applies here. Collecting data alone does not add value and will not bring you the desired result. The more precise and complete the data is, the more meaningful the analyses and insights are, which is where the true potential lies.
Step 2: From data jungle to clear analysis
Now that you've built up your database, it's time to get one step closer to the true potential of a CRM system - data analysis. Analyze a variety of information to identify patterns, trends and behaviors of your customers. A shared database between marketing, sales and service, such as the Microsoft Power Platform, allows you to analyze data across the entire customer journey. Data analysis provides important insights into customer preferences, interests and needs, and you can find out which products or services are particularly popular with your customers or lead to many support requests.
Step 3: Use the power of insights
Once the initial analysis results are available, the true potential of a CRM can be unleashed. Define the insights gained from the data analysis in order to define your target groups more specifically and tailor content more specifically to them. From this point on, basic processes such as follow-up tasks can be automated or various contact points defined in order to establish automated communication in mailings or personalized emails with customers. This application of analysis results lays the foundation for an effective CRM strategy that strengthens customer relationships.
Step 4: Continuous further development
The key to success lies in the continuous use of findings and the regular cycle of data analysis. The targeted customer relationship measures based on the initial results of the analyses in turn provide new customer information. In this way, you gain ever more specific insights that can be analyzed in a cross-divisional and correlative manner. In this way, the view of your customers becomes ever sharper and the customer picture ever more complete. Continuous further development enables you to constantly improve your CRM strategy and the resulting operational measures and to get closer and closer to your customers.
From Data to Decisions
The transformative Power of CRM for Success: From Data to Decisions
The CRM system becomes what it was introduced for - a means to an end. Through the continuous use of the results obtained and the targeted analysis of high-quality data, it unfolds its full potential. This is where the buzzword artificial intelligence (AI) comes into play, which analyzes large amounts of data more quickly and identifies trends and patterns.
As the person responsible, it is essential to take on a central role right from the start because you know the customer journey, the strategic goals and the processes of your company. You know at which customer contact points data can be collected and can create new contact points if necessary. Above all, you know what information is required to complete the customer picture and automate processes. With your knowledge and experience, you can steer the use of CRM in a targeted manner and continuously improve the customer experience. By automating your business processes and responding to the needs of your customers, you will create strong customer loyalty and position your company successfully on the market.
Use the power of data to make smart decisions and take your company to the top. The continuous development of your CRM strategy and the use of AI as an analysis tool will accompany you on this journey.
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Bachelor in Business Administration