The Pros and Cons of Relationship Management Tools
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Customer Relationship Management (CRM) tools are designed to compile information about your customers. Many industries have CRMs designed specifically that specifically fit into their criteria, while others may need to manually add their data.
Although using a CRM to manage our business has many advantages, there are a handful of disadvantages with CRMs as well.
Pros of Relationship Management Tools
A CRM system, when properly implemented, can streamline your sales process.
The Dashboard Streamlines Sales Activities
If you customize your CRM dashboard, you can make tasks more organized for you and your team. The majority of CRMs allow you to set up how your information appears, so that the most relevant data is at the top of the screen.
Automatic Data Entry Makes It Easy
There are still a few CRMs that rely on manual data entry. An investment in a top of the line CRM can remedy this as these CRMs automate as much as possible. You can also integrate your CRM with Google and social media searches. This method helps save time for you and your sales teams, as hours of research are avoided by this automatic data entry.
Although your CRM is an expense for your business, there is still a benefit. Your CRM use is directly connected to a boost in revenue. For example, HubSpot discovered that for every dollar invested into a CRM, the business sees an estimated return of $5.60 on their investment.
Much Easier Collaboration
If all your customer data is in one place, it will be much easier for you and your team to collaborate and monitor pending deals. You can also store your company’s marketing materials in a centralized library so your team can use this content to facilitate sales.
The Automation of Repetitive Tasks
Besides automated data entry, CRMs allow your team to automate tasks to boost efficiency and ultimately close more sales. Your CRM can do many tasks including lead prioritization, logging phone calls and emails, automate reporting and the ability to create and save email templates.
This means that your CRM can grow along with your business. As your customer list increases, it will be easy to add new users and capabilities.
Cons of Relationship Management Tools
Although CRMs are extremely helpful with your sales process, there are a few drawbacks.
The Burdensome Data Entry
It really depends on the CRM you choose, but all data may need to be added manually. Anyone that has ever done major data entry knows how time consuming this can be. The time spent manually adding this data takes time away from active selling.
It’s Dependent on Proper Set Up
If the CRM components are not set up properly from the start, using it may become difficult. If the system is tedious for your sales team to use, they may be discouraged from using the system.
The CRM Is Focused on Wrong Person
One common mistake made when implementing a CRM system is putting the focus on the wrong person. Many companies have their CRM tool focused on the needs of the sales manager. The CRM focus should be helping the reps sell to the customers.
It's A Time Waster if Incorrect
Having a CRM without a firm process can be a waste of time. The first step is implementing the CRM. If you neglect to follow through with the other half of the process, the CRM is pointless. The second step is to implement a regimented sales process for your team. If this plan is not expedited, your CRM may become a disorganized mountain of data.
It Can Be Costly
A CRM system can be costly depending on the number of users the system has. There also may be a need to hire an outside consultant or in house administrator to monitor the system and users. For small and mid-sized businesses, this could be a major expense.
CRMs and relationship management are vital in establishing and growing your business. You need to choose a CRM that is compatible with your business needs. PS Inc.can help you every step of the way. Contact us to get started.