Customer relationship management (CRM) software has established itself as a key component of many organizations' infrastructures. Whether a large company or an association or nonprofit using association management software containing integrated CRM tools, the technology has the ability to significantly improve efficiency and service offerings.
However, despite its advantages, CRM software is not for everyone. There are some organizations that may not benefit from the technology. It is therefore important for firms to have a means to determine whether or not to implement a CRM solution.
Recently, CRM expert Christopher Bucholtz, writing for CRM Buyer, provided three metrics that organizations can use to help them decide whether to look into CRM platforms.
Losing existing customers, clients or members
According to Bucholtz, a key signal that an organization may want to adopt CRM tools is that it begins to lose numerous existing customers, clients or members. This is because one of the most significant benefits of CRM technology is its ability to maintain information regarding these individuals and make it easily accessible to customer service agents. This way, the organization is better prepared to respond when an individual experiences a problem.
If a firm realizes that it is losing a good deal of existing customers, clients or members, the explanation may lie in inadequate customer service. As numerous recent studies have demonstrated, consumers' expectations for organizations' customer service offerings are increasing. Any firm that does not provide sufficient service will likely suffer as a result. CRM may help to prevent such a fate.
Losing explanatory data
Bucholtz argued another sign that an organization may want to consider CRM is if it is unable to determine the reason why various events occur. If the firm cannot say with any degree of certainty why a client decided to leave for another organization or why membership suddenly grew significantly, it will struggle to avoid damaging tactics and to implement effective ones. CRM can help to organize, analyze and make sense of data that would otherwise remain unusable.
Multiple applications for data
One more signal, according to Bucholtz, is if its data may be useful to multiple parts of the firm. If information accumulated may be able to improve departments as diverse as marketing, customer service, shipping and more, CRM can help to ensure that the data becomes easily accessible to everyone who may benefit from it.