Could Your Startup Benefit from a CRM?
A CRM, or customer relationship management system, is a useful tool, but not all startups consider using one. This is a huge mistake. By better managing your customers – and potential customers – you can build your business faster and more efficiently. And make no mistake – your customers are your bread and butter. Treat them well and they will turn into loyal fans of your brand, but if you put zero effort into making them happy, don’t be too surprised if they walk out the door and don’t look back.
Startups are usually small but ambitious. There is often rapid growth in the early days, which is when the startup owner pours their heart and soul into making their ideas a success. This is important, but if you want to sustain that period of rapid growth, you need to take steps to keep your customers happy.
CRMs are an important tool in managing sales when you are firing on all cylinders and learning on the job. It’s not uncommon for startups to have very little experience of everyday business admin, which is where automated tools like a CRM can come in extremely handy. The more organized you are, the easier it will be to scale up. If you’re not sure which system to go for, read this round-up from PieSync for a good overview of the best CRMs for small businesses.
Customer Information is Stored in a Central Location
Your sales team need access to customer information. This is where a CRM is worth its weight in gold. If you implement a CRM, your sales and management team can access customer information at the click of a mouse, or button if you use a CRM with a smartphone app. Since there is likely to be more than one person interacting with a customer over the course of their relationship with the business, a CMR ensures every piece of pertinent information is accessible.
Cross-Selling and Up-Selling
Since your plan is probably to grow your startup, have you considered the merits of cross-selling other products and services? For example, let’s say your startup sells sustainable festival clothing to Millennials. You don’t have zillions of customers right now, but you spot a gap in the market for eco-friendly camping accessories, which your core customers will probably be interested in.
A CRM lets you segment your customers into different groups. Once you categorize your customers, you can spot which ones might be interested in eco-friendly camping gear and target them with cross-selling promotions. Your sales team can also use this information to upsell if they speak to the customer about an existing order.
Better Management Means More Access to Business Funding
One important point worth making is that more effective management leads to more business funding opportunities. Say your startup needs a second round of funding to expand into a different niche. Investors will look at your business and see how well it’s being run; is there a process-oriented culture in place? Or are there no processes at all?
Have the right software solutions up and running and it’s clear you are organized and ready to expand.
A CRM is an excellent investment for your startup, so try one out today and see what a difference it makes!