CRM: Recession Proof your Business?

By Sharla Sikes

You don’t need me to tell you times are a bit tough right now. Buyer confidence is low, and that means that keeping the customers you have is even more important—let alone attracting new customers.

Can a customer relationship management system be the way to do this?

A white paper published by VendorGuru.com claims it is.

While everyone’s avoiding the R-word (recession), most businesses as well as consumers are tightening the purse strings. Customers are suddenly more valuable than just a

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CRM systems can help a company of any size ensure these customers keep returning—and it’s common knowledge that existing customers are cheaper to retain and more likely to buy than new customers.

“Businesses could find an effective CRM approach will give them an important competitive advantage under recessionary conditions,” states the white paper.

With an effective CRM system in place, businesses may retain profitability and grow even during a recession. Some view recessions as a bit of “natural selection” in the business world, allowing the fittest to survive and paring away those without the strength to weather tough times.

The white paper highlights three strategies for surviving—possibly prospering—during a recession.

Increasing customer penetration is the first. Customer relationship management tools can work to boost profitability as much as 70 percent, according to the white paper. Acquisition costs for new business tops the cost of servicing current customers; there are also opportunities for cross selling. CRM software guides your sales force by offering scripts for cross selling and showing the customers’ order histories.

Achieving efficiencies is second in line; streamlining a business from

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within is key during lean economic times, and unproductive salespeople can be identified and helped. In fact, CRM can help a company automate processes and develop greater efficiency throughout the entire sales cycle.

Finally, the white paper says CRM can help to use resources effectively. During slower times, keep your staff busy by trying new CRM strategies and solutions.

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9 thoughts on “CRM: Recession Proof your Business?”

  1. I believe that an economic slow down is the perfect time for business owners to look perfect their business by organizing (or streamline as you said), researching, and effectively marketing. This forces business to do better work or rethink their strategies, a task that is usually prioritized way too low.

    http://www.forsolutions.ca

  2. Businesses are under pressure to innovate as never before. They must respond instantly to changes in their market places. So they need products that are simple and adaptable. Products like SalesForce.com and Oracle on-demand are not poor products per se, but they are too unwieldy and complex for most organisations to use properly. I cannot tell you how many conversations I have had over the past year with managers who have purchased these products, often on expensive multi-user licences, simply to have them languish unadopted by a majority of the employees they were bought to serve

    In response we have launched our simple to use CRM offering online for free. In the last 3 months we have seen an uptake of over 150 clients across 32 countries. The solution can be accessed at http://www.salespush.com

  3. You have a great resource on CRM. Customer relation management through crm software are very good and Sap is going to continue like this for a long time. Keep up the good work.

  4. A new age has just been discovered where CRM is playing a major role in increasing buyer’s confidence and attracting more and more customers.

    Enterprise Wizard
    CRM is the right method to do this fast and easy.
    Now, Enterprise Wizard Hybrid CRM provides the right fit for your business today with limitless extensibility for the future.

  5. In the slowing economy it is key all sales opportunites are dealt with effectivley as competition increases for the same business.

    However, it is also important that companies dont waste time and money deploying expensive and over complex solutions.

    Try taking a look at salespush.com which offers a free / low cost and easy to use CRM solution

    http://www.salespush.com

  6. Businesses are under pressure to innovate as never before. They must respond instantly to changes in their market places. So they need products that are simple and adaptable. Products like SalesForce.com and Oracle on-demand are not poor products per se, but they are too unwieldy and complex for most organisations to use properly.
    CRM is the right method to do this fast and easy.
    Now, Enterprise Wizard Hybrid CRM provides the right fit for your business today with limitless extensibility for the future.

  7. “Implementing the right CRM for your business can be challenging every step of the way, from choosing a CRM vendor to the implementation process. This whitepaper, “”Ten Things to Consider Before Purchasing a CRM”” is helpful and can be read at intelestream web page.

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