The CRM value added proposition

Every business needs Customer Relations Management (CRM) software for multiple reasons, all of which impact your profit margin. Retaining customers is far less expensive than getting new customers. Customer satisfaction is your most important asset, and CRM software is proven to increase customer satisfaction. A CRM system helps ensure that problems are handled quickly and correctly, and that handover of customers to new sales personnel is smooth. Developing new leads without systematic registration of information is time consuming and erratic. Even if you are doing all the right things but are doing them without the benefit of a CRM software system, you are wasting a lot of valuable time.

According to Claudio Marcus, Director of Research at Gartner:

"CRM is not part of a business strategy; CRM is the business strategy."

Frederick Reichheld and Earl Sasser reported in Harvard Business Review that

"companies can boost profits by almost 100 percent by retaining just five percent more of their customers."

Mary Wardley of IDC found that

"The impact [of CRM] on an organization can at times be subtle and distributed throughout the enterprise...Cost savings and productivity enhancements can be seen in saving a sales person 20 minutes per week in writing activity reports, or answering four times the volume of web-based service requests in the same amount of time."

Even small savings can add up, so that a modest investment in CRM can pay for itself very quickly. Study results show that use of CRM software:
Why does it work?

Consider yourself as a customer. How many times have you had to call repeatedly to get an issue settled? How many different replied that "Joe handled that, but he isn't in today.?" How did you feel about that company? CRM software helps eliminate the glitches in customer support that drive customers away. A good CRM software system gives sales and marketing personnel a single interface to find anything they need to know about customers, prospects, partners and any other business contacts. Emails, details of conversations, scheduled activities, sales opportunities and outstanding customer issues are all easily found in one system. CRM also allows management to see how each lead is being exploited and how each problem is being handled. Reports allow easy tracking of performance and allow you to implement various metrics to objectively assess marketing, sales and support performance. A CRM system allows you to share contact information throughout your entire organization. Everyone can see the entire picture at a glance. See what a customer has previously purchased, see if they have open support issues, make certain they are on your mailing list, find out what they are likely to be purchasing.

Registration and systematic tracking of customer issues helps spot recurrent product defects. Recording and systematizing solutions to those issues helps personnel provide quick solutions to problems, resulting in higher customer satisfaction and savings in support time. A CRM system helps personnel focus their energies. They can prioritize tasks, because the CRM shows them what is urgent to do right now. They can schedule activities and use the daily calendar list to plan every day, and see the scheduled event notices as they fall due. There are no more unpleasant "surprises." CRM software capabilities used to be limited to large firms with relatively unlimited resources. Large organizations used this advantage to help provide the "personalized" service that was once characteristic of very small businesses. However, Web technology has put CRM solutions for small businesses in the reach of everyone. Expandable online databases allow you to buy as much or as little CRM as you need.

MagnaCRM offers an affordable, expandable and easy to learn system that allows you to get started with your own CRM software system. The entry level system for a single user is free. Larger systems include a free trial period and are based on a one-time payment. Visit to get your own CRM software system today.
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