One of the key reasons that companies invest in CRMs is
because they can provide an analysis of customer data that can result in an
improvement in process or product. CRMs can achieve an improvement in marketing
processes because they help enterprises identify and target their best
customers. An important question to consider is, “If 20 percent of customers
bring in 80 percent of revenue, why not serve only that 20 percent?”
(Collins-White, pg. 1). CRMs can perform customer segmentation, which helps
marketers focus their efforts on where they will make the greatest impact.
Before technology-enabled marketing, individuals were usually segmented into
groups with others who shared similar demographics or social characteristics.
Today, CRMs are able to segment individual clients, perform statistical
modeling, and provide profitability calculations in order to detect the relative
value of that client to the business. For companies such as professional
services firms, one customer can mean substantial revenue opportunities.
Discovering these opportunities is one of the goals of effective marketing
departments. CRM's can aid in this process by providing lead management and
opportunity tracking. Lead management technology analyzes company or proprietary
data to determine where an enterprise’s greatest opportunities lie. In addition,
consulting firms can employ the technology of CRMs to track requests for
proposals. The technology behind CRMs has the capablity of keeping track of
which RFPs were followed. In addition, an analysis can be conducted on those
industries or markets from which the company is receiving RFPs in order to
determine those areas that are most profitable and therefore focus on in the
future.
Not only can CRMs assist in identifying opportunities, they can also
track marketing efforts against wins in order to determine how effectively a
company’s campaigns are. Many companies blindly market to current and potential
customers without really knowing if their efforts are working. An integrated CRM
has the functionality to calculate the percentage of those who responded to a
marketing campaign compared to those who were targeted in the campaign. This is
an invaluable tool in identifying the most appropriate methods and tactics for
reaching current and potential clients. A technique that has long been employed
by marketers to get a better sense of their customer’s needs and preferences is
through surveys and questionnaires. Many CRMs come equipped with tools that can
automate and improve upon this process. Survey tools can be used to distribute,
compile, manage, and most importantly analyze survey findings. Technologies as
common as MS Access and e-mail are capable of distributing, compiling, and
managing these findings. But it takes the more advanced functionality found in
technologies such as CRMs in order to conduct an in-depth analysis of the survey
results. This type of analysis is what makes the survey results meaningful to
marketers and business developers. Sales Capabilities of CRMs Sales and
marketing efforts often go hand in hand in ensuring revenue and growth within an
enterprise. Hence, much of the information and process improvements, which
benefit marketing, can also be used to improve sales efforts as well. Because
these two functions are so closely related, its only logical that the technology
that enables them is integrated. CRMs provide information, resources, and tools
that allow marketing teams to win clients and enable sales teams to generate
additional business.
