Customer Relationship Management (CRM) is a strategy and technology aimed at managing customer relationships. It includes a set of tools, processes and systems that aim to improve customer interactions, increase sales and customer satisfaction.
CRM plays a key role in modern business, as it not only helps to collect and analyse customer data but also allows you to create personalised service strategies, optimise communication and improve service levels. Every year, the dynamics of business intensify. In 2024, the business environment is becoming even more competitive and demanding. Companies are faced with the need to quickly adapt to changes and find effective ways to retain customers.
In such an environment, CRM becomes an indispensable tool for successful business. It allows to better understand customer needs, improve service quality, optimise sales processes and increase conversion rates. Effective use of CRM in 2024 is becoming a key success factor for companies, allowing them to be flexible, adaptive and remain competitive in a rapidly changing business environment.
Trends in sales in 2024 and the need for CRM
About 50% of existing customers of most companies do not generate profit due to inefficient interaction with them.
Overview of trends in the world of sales 2024
- Transition to digitalisation and online sales: Most companies are increasing their online presence and focusing on digital sales channels. Customers increasingly prefer online shopping, which requires companies to effectively utilise online platforms and improve the online experience of customers.
- Personalisation and customer-centricity: In 2024, the focus shifts to creating a unique experience for each customer. Personalising sales and service becomes a necessity to meet customer needs and build long-term relationships.
- Leveraging data for decision-making: Data analytics plays a key role in forecasting and optimising sales strategies. Companies are actively collecting and analysing customer data to make informed decisions and predict market trends.
- Technology Integration and Process Automation: The use of artificial intelligence, job automation and the use of chatbots in sales are becoming more common. These technologies help improve sales team efficiency, freeing up time for more strategic tasks.
- Focus on the customer experience after the sale: Customer retention and extending the customer lifecycle are becoming key strategies. Companies are actively working to retain customers after the sale is made by offering support and value-added services.
Pay attention to sustainability and ethics: Buyers are increasingly paying attention to sustainability and the social responsibility of companies. This influences purchasing decisions, and companies are actively incorporating sustainable practices into their sales strategies.
The overall trend in sales 2024 is to deepen customer relationships, leverage data and technology to improve customer experience and meet customer needs in a dynamic and digital business environment.
Increased competition and the need for effective customer data management
Business efficiency depends on the work of the sales department. Managers interact with customers, form an opinion about the company, and sell goods or services. A CRM system for the sales department will help to control the work and manage business processes. It is a powerful tool that helps automate many processes, segment customers, establish interaction with them, and improve marketing promotion. CRM for the sales department is the engine of the company that drives it forward.
In 2024, the competition in the market is becoming more intense, so it is important for companies to build an edge based on customer insights. Customer data management becomes a strategic challenge to increase competitiveness. This includes:
- Deep customer insights: The data collected about customers helps in better understanding their needs, preferences and behaviors. This allows you to create personalised service strategies and offer products or services that meet their expectations.
- Better sales management: Managing customer data through CRM improves sales processes, optimises communication and simplifies collaboration between departments. This reduces decision making time and improves sales efficiency.
How CRM helps to adapt to market requirements and improve sales processes
Many companies initially believe that CRM implementation is a magic wand that will sell and generate leads at the speed of light. But this is not the case. The system will not lead customers instead of you, and it does not guarantee an exponential increase in profits. CRM is a tool that gives results only if it is used correctly.
A CRM solution will simplify life and increase the efficiency of the sales department. Thanks to the automatic funnel, the manager plans his further actions and records information about the client, which will help to prepare an individual commercial offer in the future. In addition, it will be much easier to monitor the manager's performance.
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Having access to all conversations with customers, information about the reasons for refusals, product returns, and so on, you can adjust the work of the sales department and improve it.
- Flexibility and Adaptability: CRM enables companies to respond quickly to changes in the market by having access to up-to-date customer data. This helps in adjusting sales strategies keeping in mind the current market demands.
- Improved customer relationships: CRM provides deeper engagement with customers, which helps in creating long-term relationships. Increased customer satisfaction and loyalty encourage repeat sales and attract new customers through positive recommendations.
- Analytics and Forecasting: CRM provides tools to analyse customer data to predict trends, forecast demand and optimise inventory. This helps companies to be more agile and plan effectively in the market.
Statistic
According to “statista”, a leading research company, the total average annual growth of the global CRM market is 10.68% and as of 2023 is estimated at $79.4 billion. This figure is expected to reach $131.9 billion by 2028.
Here are some more recent and interesting facts (2023):
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92% of businesses say that a CRM system plays an important role in achieving their financial goals.
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Conversion rates can increase by up to 300% thanks to the use of CRM.
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72% of companies say that a CRM system gives them access to better customer data.
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64% of businesses consider this solution to be very effective.
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Sales teams using CRM confirmed that job satisfaction increased by 17%.
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So, if the internal skeptic is calmed down, we suggest moving on and finding out the specific benefits of CRM for sales.
Benefits of CRM implementation for sales team
It's much easier and 5-10 times cheaper to close a deal with an existing customer than with a new one.
Improved customer interaction through centralised data storage:
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Single database: CRM gives the sales team centralised access to customer data, interaction history, inquiries, preferences and purchases. This facilitates communication within the team and helps deliver a more personalised service to customers.
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Improved customer service: With access to complete customer information, employees can provide more informed and better service, which contributes to customer satisfaction and increases the chances of successful sales.
Process automation and optimisation of sales team working hours:
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Task Automation: CRM allows you to automate routine operations such as sending notifications, creating reports, reminding about important events, etc. This allows the sales team to focus on more important aspects of the job.
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Sales Funnel Optimisation: CRM allows you to track each stage of the sales funnel, identify bottlenecks and optimise processes to increase conversions. This helps employees focus on the most promising deals.
Analytics and reporting for informed decision-making:
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Reports and analytics: CRM provides the ability to create various reports and analytics based on the collected customer and sales data. This provides management and managers with important information to make strategic decisions.
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Forecasting and Planning: The analytics provided by CRM help in predicting trends, evaluating campaign performance and planning evidence-based sales strategies.
How to choose the right CRM system for your team in 2024
Choosing the right CRM system for your team in 2024 involves a number of key steps and criteria, taking into account changes in the market and your business needs. Here are some important aspects to consider:
1. Identify your business needs:
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Functionality: Determine which CRM system features your team needs: contact management, sales funnel, marketing capabilities, analytics and reporting, etc.
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Integration: Make sure the CRM can integrate with existing systems (e.g., email, social media accounts, inventory management systems).
2. Consider the technical aspects:
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Cloud or on-premises system: Decide whether you will prefer a cloud-based CRM or an on-premises solution, considering security, availability, and flexibility.
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Scalability and flexibility: Make sure the CRM can scale as your business grows and can be easily customised to meet your needs.
3. Consider user experience and training:
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Interface and Usability: Conduct user interface testing to make sure it is user friendly and easy to use for your team.
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Support and Training: Make sure that support and training is provided to effectively implement the system and train employees.
4- Refer to reviews and ratings:
Customer Reviews and CRM Ratings: Explore user reviews, ratings and reviews of various CRM systems to get an idea of their effectiveness and customer satisfaction.
5. Security and Compliance:
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Security level: Pay attention to security measures, especially when dealing with sensitive customer data.
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Regulatory and legal compliance: Ensure that the selected CRM complies with legal requirements and regulations in your industry.
Conclusions
In conclusion, the use of CRM (Customer Relationship Management) will continue to be essential to successful sales in the future. It is predicted that the evolution of CRM will focus on improved analytics, integration with new technologies, increased personalisation, and a focus on deeper customer insights.
CRM provides tools to collect, analyse, and leverage customer data, enabling companies to create more personalised sales strategies, anticipate customer needs, and deliver better customer experiences. In the future, CRM will further leverage technology and data to improve sales effectiveness and to more accurately analyse and predict market trends.
Key areas of CRM development will include integration with new technologies, improved analytics, focus on customer experience, and increased automation. Based on this forecast, companies utilising CRM will be in a better position to adapt to changing market demands and achieve greater sales success.
