As today's economy is under fierce watch for a recession, businesses everywhere are scrambling to find ways to hold onto their customers and save money.
Customer Relationship Management (CRM) software solutions help business to maintain these relationships and play a vital role in protecting businesses.
According to a VendorGuru.com white paper, "Using CRM To Recession Proof Your Business," "businesses could find an effective CRM approach will give them an important competitive advantage under recessionary conditions."
CRM's role in a recession is to help businesses maintain profitability and help find new business. Calling a recession "the survival of the fittest for businesses," the white paper notes that choosing a CRM system that helps keep the business strong will guarantee they survive a recession.
To better highlight this, the white paper offers three recession proof strategies for businesses.
The first strategy is to Increase Customer Penetration, especially in times of recession when competition heats up. By doing so, customers can boost profitability from 25 percent to 95 percent, as acquisition costs for new business exceed the costs of servicing existing customers. Also, getting more business out of customers by cross selling and turning more efforts into sales opportunities is key. CRM software helps with guiding sales staff with scripts for the cross-selling process as well as alerting them of past ordering histories, to better ensure a sale.
Next, the white paper points to the need to Achieve Efficiencies. With CRM software, organizations can automate processes and identify sales people who are unproductive as well as provide efficiencies throughout the order lifecycle.
The third strategy is to Use Resources Effectively. During a recession, the slow down of business leaves more time to introduce new CRM strategies and solutions. This is a perfect time to further drive the need to hang on to customers and will help the business remain successful, even during hard financial times.
For more check out the white paper HERE.
Stefania Viscusi is an established writer and avid reader. To see more of her articles, please visit Stefania Viscusi’s columnist page.