Handle the Recession With Low Cost CRM

Recession doesn't have to mean business disaster, but it does encourage companies to review CRM strategies. Companies should ask, for instance, whether the current business CRM model meets the challenges that lie ahead.


Customer retention


One such challenge is customer retention. In the rush to tighten budgetary control in a recession, companies mustn't forget their existing customers. In fact, these customers can become more important than new ones. After all, a company knows that existing customers already want its products or services.


CRM software can identify customers and provide data about their purchase patterns. A company can use this information to make immediate proactive sales proposals. Alternatively, even basic details such as name, address, phone number and email address are useful. A company can employ these to remind customers that it's ready to help them at any time.


Boosting sales


An effective business CRM model can provide more than this, however. It can give customer order histories that form the basis of cross-selling strategies.


For example, if an analysis of these histories shows common needs, it may be possible to develop sales output. With sales CRM software, a company can identify new products to offer. This type of analysis is significantly cheaper than struggling to find new customers in difficult economic conditions.


Most effective use of resources


This is not to suggest that recession inevitably leads to a drop in new customers. The right CRM software helps a company understand current customers and thereby provides guidance for targeting new ones.


Business CRM software is in effect a sales force automation system combined with a marketing system.A company should therefore make full use of the marketing potential that CRM software offers.


In recessionary times, such strategies help keep sales staff busy, and focus attention on the purpose of their jobs. When times are tough, it's all too easy for these staff to lose motivation and waste time worrying about the future.


Greater staff efficiency


CRM software can also help sales managers identify who among a sales force is working hard, and who needs a helping hand. Furthermore, the right CRM business strategy for existing and new customers can give less productive staff the impetus to start pulling their weight.


Cutting costs


Finally, cutting costs in a recession is still an ever-present reality for all businesses. Even here, CRM has a role to play.