Over the past few years, competition in the retail industry has witnessed a significant rise. As a result, optimal management of Customer Relationships is vital in promoting organizational growth. From customer service to email marketing, there is a myriad of strategies that retailers can utilize to maintain a long and positive relationship with their customers.
Benefits of Customer Relationship Management
A customer relationship management (CRM) system assists in scheduling and monitoring business operations such as sales, Return on Investment (ROI) and marketing campaigns. As a result, firms can capitalize on market opportunities and boost in-store profits. According to a recent study, a CRM system will improve customer satisfaction and retention by at least 55 percent.
Over 35 percent of customers share about receiving positive shopping experiences and thus become brand advocates. As a result, more than 80 percent of business executives are expected to increase investments in providing premium shopping experiences. CRM enables retailers to track customer purchasing habits and forecast upcoming industry trends. Businesses can utilize the data to attract target audience successfully and improve overall market share.
CRM systems gather, store and process accurate and insightful customer data in one place. Employees can access this data to understand customer preferences and offer personalized product and services to boost conversion rates. As a result, by the year 2025, the customer relationship management market is expected to reach $82 billion.
Over the past few years, shoppers have started to utilize various channels to conduct purchase decisions. One such channel is Social Media. According to a recent market study, over 25 percent of shoppers prefer to interact with their preferred brand via social media platforms. CRM enables firms to utilize social media channels such as Instagram, Facebook, Twitter and LinkedIn and technological advancements to promote customer engagement and satisfaction. CRM enables businesses to monitor trends on these channels and introduce relevant marketing strategies to target social media users.
Customer relationship management systems promote operational efficiency throughout the organization. As a result, more than 40 percent of the business executives consider CRM as a vital tool in optimizing day to day business operations. Technological advancements such as Data Analytics, Artificial Intelligence and the Internet of Things has significantly improved CRM systems. Companies can now operate their CRM systems through multiple electronic devices such as Mobile Phones and Tablets. This has enabled firms to increase employee productivity by over 20 percent. As a result, CRM adoption and implementation have also witnessed a significant rise in the market.
In the highly dynamic industry, firms are continually exploring for ways to reduce costs and increase productivity. Through CRM, businesses can improve overall corporate performance and enhance core competencies. As a result, companies are able to introduce innovative and effective strategies to maintain a loyal customer base and tackle market competition.
Written By: Ranjeewa Dias
Business Technology Manager