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Strategic Benefits of CRM Initiatives for Senior Management

Strategic Benefits of CRM Initiatives for Senior Management

CRM can work as a differentiating strategy. For example CRM delivers an ROI in over 70% of projects – from this study of over 1000 CRM implementations from 2001 to 2004. (Bob Thompson, founder of CRM Guru.com the world’s largest CRM industry portal. )

“Successful CRM is about competing in the relationship dimension – not as an alternative to having a competitive product or a reasonable price – but as a differentiator. If your competitors are doing the same thing you are (as they generally are), product and price won’t give you a long term, sustainable competitive advantage. But if you can get an edge based on how customers feel about  your company, it’s a much stickier – sustainable – relationship over the long haul.”

What enhances customer loyalty?

Very surprisingly, the Customer View of Value is described by loyal customers as follows:

  • Easy to do business with
  • Responsive and proactive
  • A service and a value just for me
  • Consistent performance over time
  • They ask me questions
  • Great expertise

Only 20% of the time do they talk about the functionality of the product or service or about the price.

CRM is a strategic initiative. 

Strategic Benefits

Functions

Benefits

Enhances Executive Decision-making

Access to data not available before. Can see the big picture clearer as all data is structured, categorised and organised.
 Trends are visible

Decreases Costs of Selling

One of our customers calculated they saved R2 million on their annual price list distribution exercise.  They were producing full colour printed price lists and these were distributed by hand by the sales staff. Now they are email merged in HTML format

Improves Internal Productivity

(See all productivity benefits mentioned)

Increases Sales Revenue

CRM delivers an ROI in over 70% of projects from his study of over 500 CRM implementations (2004)

Third Wave as a low cost local implementer  has stats closer to 90%

Gain Competitive Advantage

Guaranteed if Customer Loyalty is enhanced

System is a structure for managing Customer Data

Develops into a huge investment - corporate asset

Marketing Strategy is affected

Metrics on results of promotions affect marketing strategy

Sales Strategy is affected

Strategic data relating to competitors etc can be used to alter sales strategies

If you are interested in finding out more about Advantage CRM Software and the benefits thereof, contact us or call us on +27 11 462 6871 and we will gladly be of further assistance.