10 ways that a CRM Solution can help you drive costs down in your organisation

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Every CRM vendor will tell you that implementing a CRM solution can help you drive down costs in your organisation. In this blog we’re going to demonstrate 10 ways that you can drive costs down.

1. Helps to streamline systems and processes across the whole of your organisation

A CRM system can help your organisation integrate multiple and fragmented end to end processes and systems, giving you a single view of your customers and can act as a single repository in which to view your customers’ interactions with your organisation. Information is accessible to all stakeholders at any given point in time. Critical data within existing systems can be integrated with your CRM and information can be kept clean by removing duplicate key entry across numerous functional areas and systems, reducing the risk of manual data entry errors. This will significantly improve your customer-facing teams’ efficiency and save a lot of time and expense.

2. CRM workflow helps your teams organise and prioritise their work.

CRM solutions with in-built workflow capability allow key processes to be driven by the system, streamlining and automating workflows within teams and across departments helping you serve your customers more proactively and efficiently and saving time and money in the process.

In today’s competitive environment, a view of where your customers are within their lifecycle is vital. An integrated CRM system provides you with just that, making your tasks more straightforward, prioritising your work from meetings, serving your current customers proactively, and reaching out to your prospective customers on time.

Managing your business operations with separate emails, calendars, and task management systems is a challenging task. Implementing a CRM system with Office 365 integration helps to do the same activities in a much more structured manner and more quickly

When your teams are organised, you can satisfy your customers more easily, promptly, efficiently and at a lower cost.

3. Improves Customer Service and Support

Implementing a CRM solution can drive a step change in improving your customer experience in several ways.

a) Visibility of all your customers interactions

Having visibility of all of your interactions with your customers in one place, enables your teams to see what recent and historic activity the customer has had with the organisation; from what products and services they have, through to quotations, service and billing queries and complaints. Having this visibility helps to ensure that your teams have the most up-to-date information, reducing call times by resolving queries more quickly, improving customer experience by knowing exactly when an order has been dispatched or when their next bill is due.

b) Improves collaboration between departments

Using workflows, your CRM solution can ensure that information and tasks are shared with the relevant individuals or departments within your organisation at the right time, making customer service and retention easier and more effective.

It has been estimated that around 25-30% of customer operation interactions don’t contribute to revenue. These “redundant” interactions are often a result of a previous problem within a customer’s experience, for example:

  • Repeat calls to resolve a single issue (typically around 10-15%)
  • Calls for updates regarding a purchase or payment
  • Calls for clarification regarding confusing offers, documentation or correspondence

By eliminating these problems at the source, organisations can potentially deliver a significant reduction in cost through preventing redundant calls, whilst having the additional benefit of removing sources of frustration for customers.

c) Positive impact on Customer Experience

By improving customer service and support calls and enquiries, customer satisfaction increases and makes your customer interactions more efficient. If you look after your customers, you can expect high volumes of word-of-mouth advocacy and referrals, leading to growth in lead conversions and new acquisitions, reducing the overall cost of finding new leads. It provides systematic and efficient customer experiences, but you also increase your incoming customer rate and reduce overall business cost.

d) Tracking customer requests, complaints, orders and feedback

If you have a CRM in place, you won’t miss out on your customers’ service requests. The moment a customer gets in touch, whether it be by phone, email, social media, it is logged into your CRM. It is then promptly passed onto the designated person ensuring customer issues are resolved quickly and reducing further contacts, therefore maintaining customer satisfaction and reducing repeat call costs.

4. Acquisition vs Retention cost savings

Customer loyalty impacts almost every metric that’s important to a successful business and this is especially true when you consider that repeat customers are usually the most profitable. New customers tend to cost more to acquire, and don’t spend as much money as loyal, repeat customers. Keeping customers coming back for more is often critical to business success.

Directing resource towards improving customer retention is one of the best investments a business can make. One of the main ways to do this is to utilise a CRM solution alongside your business strategy.

Depending on what industry you operate in, studies suggest it is anywhere between 5 to 25 times more expensive to acquire a new customer than retain an existing one. And yet, existing customers are 50% more likely to try new products and spend 31% more, when compared to new customers. Although customer acquisition is vital for long-term growth, focusing on opportunities for customer retention and upselling can help to increase revenue at a lower expense than acquiring new customers.

5. Reduces the cost of your marketing

As CRM allows you to maintain all customer information in a centralised database, it can help your marketing team in multiple ways.  They can get clear visibility of every opportunity, and map out the whole customer journey from enquiry through to sale, giving a better understanding of the sales pipeline or prospective sales coming in.

By analysing customer information; purchase, billing, product, service and usage data, CRM solutions allow your marketing teams to focus tailored messages and campaigns to specific profiles of clients and prospects. Your marketing teams can create content that talks to individual customers and shares valuable information that ultimately helps grow your relationship between your customers and your organisation. With automated reporting and workflow processes reaching your audiences becomes much easier and less-time consuming.

Some businesses struggle to predict trends or buying patterns and habits. Getting the wrong data can be very costly for several reasons. CRM collects all the data needed from buying habits, spikes at certain times of the year to regional upticks and can also help target marketing initiatives, ensuring your marketing budget is used more effectively where and when it will make the most impact.

6. Streamlines your sales process

CRM software enables your sales team to work more efficiently, effectively and intelligently through a centralised dashboard. They can keep track of their new leads, schedule dates and times to contact new prospects, schedule follow-ups, manage proposals, quotes and orders, set reminders and identify upcoming opportunities. Your sales teams can view historical sales numbers to help predict future sales and discover ways to cross-sell or up-sell products and services.

Lead management and nurturing sales becomes far easier with a CRM system as it reduces conversion cost and lowers the cost of new lead acquisition. Workflow efficiencies, including accountability and ownership of tasks, help decrease your sales processes and time, from proposal to order completion.

As CRM systems can automatically produce sales reports with accurate and up-to-date information instantaneously, this saves time and money and, most importantly, gives your sales people more time to focus on revenue generating activity rather than time spent producing reports.

Integrating supply chain data into your CRM solution also allows sales to see how much inventory is available to ensure order fulfilment. This will increase customer satisfaction and reduce delayed delivery or cancelled orders.

If your sales teams spend most of their days travelling and incur high expenditure, CRM can help ease the cost and remove any wasted travel by filtering all your customers in particular locations and scheduling their day and route by organising customers areas eliminating the need to run around. This increases the ease of selling, reducing the cost and time spent optimising sales.

study from the Aberdeen Group shows that sales teams that are productive and have effective workflows are 81% more likely to be making consistent use of CRM systems. Additionally, the “Startup Sales Stack Report: 2017” concluded that CRM is widely considered to be one of the most important aspects of sales, along with lead generation and lead engagement.

7. Using Reporting & Key Performance Indicators to help manage your organisation.

It’s no secret that to stay relevant in an increasingly global and competitive marketplace, managers and leaders in an organisation must have appropriate information readily available to them. By implementing an effective reporting and analytics system, a business can increase communication, productivity, accuracy and timeliness.  This will aid in creating a sustainable environment where management can make thoughtful and informed decisions, in order to grow the business.

By effectively monitoring your organisational activity through a single dashboard, managers and leaders can quickly respond to changing market, service or sales demands. Below are just a few examples of how implementing effective reporting can help to reduce costs:

Improved Internal Communication

By implementing an effective internal reporting system, you enable information to flow upward, downward, or laterally, reaching the intended recipient in the right format at the right time.

Increased Productivity

In today’s economic and competitive environment, organisations must be flexible enough to respond swiftly to industry changes and opportunities. Being able to report at a customer, segment, channel and product level, ensures transparency of what is happening within your organisation at any moment. This allows your teams to track specific trends in particular product lines, segments and customers quickly and adjust marketing activity, production forecasts or your supply chain in a timely way, saving time and money.

Increased Accuracy

The overall accuracy of managerial planning, budgeting, and forecasting is largely dependent on the accuracy and completeness of the information available when making those decisions, and a business’s ability to manage analytics. By having a reporting system in place that provides both relevant and accurate information, the key decisions will have been made with the proper decision-making tools.

8. Reduces the cost of mistakes and rework

Manual data entry causes many major issues, including the chances of missing out on information or adding duplicate records. If these mistakes are not detected in their early stages, this will cost your organisation, alongside wasted employee time, in correcting the issues. CRM avoids these human errors as they minimise the need for manual entry. All data gets updated automatically, and there is hardly any scope of missing data or duplication. This will reduce the cost of business due to data errors. It also means your employees can focus on priority work and not have to spend hours of their day entering data onto spreadsheets, which previously prevented them from getting on with other tasks.

9. Integrate or surface your applications and information to one place

Many organisations, particularly those that have acquired other businesses or have had a piecemeal IT strategy, often have a disorganised collection of on-premise and cloud applications that employees have to toggle between, using different login credentials and user workflows for each. Trying to keep data organised and up to date using these disparate systems is resource-intensive, complex and costly. Just as importantly, the customer experience often suffers, with human error, data inaccuracy and lack of integration causing disjointed experiences for customers. In an age where consumers have grown to expect instant gratification and a seamless customer experience, mistakes due to IT system mismanagement, can be fatal to an organisation.

10. Reduces your organisation costs

A well-implemented CRM solution can significantly impact the efficiency of your teams across your organisation. Throughout this post, we’ve highlighted areas of process and system improvement, improved reporting, better workflows between teams, improved access to information, ultimately driving up sales revenues, reducing operational costs and therefore improving your bottom line.

A CRM solution will not do this by itself of course. Implementing the solution effectively, with a thought through strategy, a strong implementation team and partner as well as senior management buy-in are all critical success factors. We can help!

Planning to invest in CRM Software? Discover what ViewPoint CRM can do for you. Contact our expert team today to discuss your needs, or book a demo.