Does Your Startup Need a CRM? How to Know the Right Time to Get One
A customer relationship management (CRM) tool allows businesses to manage and engage with customers in meaningful ways. Its goal is to retain customers for as long as possible without jumping ship to your competitors.
From this definition, it is clear that a CRM tool is essential to all organizations, startups included.
If you’re a startup owner, you may have a system that doesn’t use a CRM tool. Or you think you’re small enough not to use a tool for the time being as you focus on growth first.
Sooner or later, however, you’ll find yourself needing CRM software to make the necessary changes and improvements in your startup.
Below are signs that point to the need to use a CRM platform:
If You’re Getting More Clients Than You Can Track
In the beginning, you won’t have to worry about storing, sharing, and managing data for your startup. Also, the expectation is that you won’t have lots of clients to deal with since you’re just starting with your business.
But once you find success in your industry, prospects will come crawling to your startup for your products and services. You’ll probably close some of them into clients, which adds to your current client base.
Suddenly, you have more than enough clients you can handle at the moment. However, even if you have the personnel and resources in place, the problem starts when you don’t have the necessary information about your current clients in hand.
You may have stored customer data in a spreadsheet or a different computer. Worse, the person who knows everything about the customer is unavailable or is no longer working with you.
While this is an excellent problem, it’s a problem nonetheless.
Without a proper and efficient system in place, you might lose the clients you just gained and old clients!
Using a CRM tool, you can consolidate all client information in a single place. First, it allows you to create detailed profiles for each client that can help turn them into repeat customers soon.
A CRM tool tracks your email exchanges via email if you interact with them. So, for example, you can mine for insights on how your sales team can further engage with them, leading to another sale.
Some CRM software doubles as an email client to segment subscribers and send automated drip campaigns to each one.
Using information from your CRM tool, you can create highly targeted drip campaigns for customers for your upcoming sales. The great thing about email automation is it identifies the appropriate campaigns to be sent to specific customer segments in your CRM.
This way, you can increase engagement and create more opportunities for sales without manually sending them the emails.
If You Have Trouble Managing Contacts
As mentioned above, your startup will eventually rub shoulders with highly qualified leads. Or you may be running an outreach campaign to touch bases with potential customers in the market.
Regardless of your lead generation strategy, it would be best if you learned how to store the information of your contacts properly. This is vital, especially if stringent guidelines in data collection are in place, like in the healthcare industry.
Once your startup flourishes, getting data efficiently anytime and anyplace affords you the flexibility and adaptability in closing deals.
Having a single dashboard where authorized people from your organization can access client information is what a CRM tool does.
The platform also allows collaboration among different teams in your company regarding your contacts.
If you’re running an e-commerce startup, your marketing team should help your business acquire prospects. To do this, they need to have access to your current customer base, which is something that a CRM tool offers. Then, using their details, your team can develop a customer avatar that they’ll use for creating the campaigns.
After rolling out the campaign and attracting leads, the marketing team can input details of your newly acquired contacts into your e-commerce CRM. Your sales team can then defer to the tool for information about these prospects and learn the best ways how to close each one of them.
The process repeats itself after your sales team converts the prospects into sales. Then, your marketing team can continue refining the customer avatar using the new customers to help them tweak your campaigns to attract similar prospects to your business.
Also, using a CRM tool doesn’t depend on what kind of startup you have. Whether you’re a budding chatbot agency, an online clothing store, or a SaaS company, all startup types will benefit from leveraging CRM software the right way.
And collaboration within the organization isn’t confined to just the marketing and sales teams. Since most of your employees won’t be at the same place during work hours, online tools like a CRM platform have become more critical. But that can also raise security concerns, so make sure you control the online access of your remote workplace team to only those things appropriate to their roles.
If You Don’t Know Where the Money is Coming From
Once you’re working with numerous clients, you want to know who among the rest has stayed with you the longest or who has purchased products from your repeatedly.
Also, you want to keep track of your business expenses in relation to the clients you have. For example, who among them eats up most of your resources, financial or otherwise?
Knowing how your revenue goes in and out of your startup is another crucial component for growing your business. Ideally, you want to generate more and spend less money for your startup.
Your marketing efforts should cater to customers who have been with you through the years to do this. They stay as customers for long means that they’ll be more willing to purchase more of your products and services through your campaigns.
Regarding expenditures, you want to prune resources costing you money and replace them with more affordable alternatives that produce the same results.
Again, CRM software can help you determine how you acquire and spend your startup money by looking at your customers. By tagging the total for each opportunity your sales team has closed, you can see how much they have made for you. From here, you can identify your best customers and find ways to keep them as one.
Deepening your relationships with existing customers allows you to save money from being spent on acquiring new ones. And by pulling out all the stops to make all your customers feel at home, you are already making an effort to increase your bottom line.
Wrapping It Up
As you can see, running a startup primed for success is all about productivity. So creating a system where pertinent people in your information and data can access contact data to help them close leads and convert them into sales will be key to its growth.
At the same time, knowing which customers bring the most money to your coffers lets you focus on the highest spenders to get the most revenue for your business.
You can achieve all these for your startup using a CRM tool.
You don’t have to wait for the signs above to manifest before jumping the gun and getting the software for your business. As early as now, you should have a CRM platform where you can organize information and make it easily accessible to all.
This way, you can easily adapt to the demands of your startup as it continues to flourish.