Customer Relationship Management (CRM) can be defined as relationship building between the customer and the company and creating a win-win situation for both if used optimally. Recent business trends point towards businesses now moving from focusing on customer experience to achieving and sustaining customer satisfaction. Hence, the use of CRMS for both small and big firms has seen a massive increase, with over 91% of small companies now using CRM software (Business.com). As companies of all sizes can be seen struggling to stay ahead in gaining and retaining customers, the CRM market is expected to grow enormously, changing profit tracking and building strategies completely. According to Gartner estimates (2021), the global CRM market is predicted to grow at a 13.7 percent Compound Annual Growth Rate (CAGR).
Even though CRM is vital for any business in today’s VUCA world, it is essential for small-scale businesses looking for growth and cost-cutting strategies. Since small firms are very much dependent on gaining and retaining customers, CRM helps companies in mapping interactions and continuously engaging with customers. Small businesses that use CRM can see how the seamless end-to-end interaction is helping them generate greater revenues by driving profitable growth and achieving operational excellence.
It would not be an overstatement to say that CRM’s increasing use, particularly for small-scale businesses, is completely transforming their revenue generation strategies. This is being done so by first creating a customer database using CRM systems and then, in turn, using the data generated to convert leads into sales and for repeated sales. Positive customer experience is created through decisions based on customer-centric knowledge, which can then be seen in the form of customer loyalty, repurchases, and lifetime customer values. According to an article by Mckinsey & Company, “What It Takes To Capture The Value of APIs,” APIs used in CRMs for integrating enterprise systems can help generate valuable systems of customer record, which can be used to capture greater revenue growth.
Since it is possible to now use CRM-based technologies and relevant applications for pricing strategies, buying trends, customer and product history, market analysis, and personas, companies can address relevant concerns, better their products, and ultimately drive growth.