How effective is CRM really?
Customer relationship management (CRM) solutions have become important to modern business, but how effective are they? Most of the companies are still using spreadsheets to manage their customers, are they really effective? And if they are using any other traditional standalone CRM system are those effective?
In these ever changing business dynamics corporate world will have to make a choice –
- Option 1: Keep managing customers through hard copies and spreadsheets
- Option 2 : Keep using age old standalone CRM software
- Option 3: Move to latest integrated, cloud-based CRM system
Let’s discuss the pros and cons of these options one by one.
Option1: Using spreadsheets
A start-up company may find this option cost effective initially, but as the business grows it is neither scalable nor it is flexible for expanding business needs. Company will quickly realise that they need a more scalable and flexible CRM to track customers and transactions to stay competitive. Spreadsheet has many short comings.
- Spreadsheets limits the customer data into individual computer systems
- Management will never have visibility into sales team’s activities
- Alerts, reminders and diligent follow-up are missing resulting into loss of business
- Complicated and time consuming reporting and analysis methods
- What happens when an employee leaves the job? Data is permanently gone with him or will be hard to comprehend…
These analysis leads to one simple query, is this method ideal for the rapidly growing business needs? The answer is NO.