Did you know the global customer relationship management (CRM) market is expected to be worth $35 billion by 2026? That’s a significant increase from $24.4 billion in 2017. And the reason for this is because CRM software can empower businesses to build better customer relationships and experiences.
In fact, businesses are now using CRM data to make more informed, data-driven decisions, and it’s paying off.
Let’s explore what CRM data is, how you can leverage it to make smarter business decisions, and the benefits of doing so.
1. Set Clear Objectives
Before you start analyzing your CRM data, you need to know why you’re doing it. What are your objectives?
For example, if you’re a marketing manager, your objective might be to improve the ROI of your campaigns. If you’re a sales manager, your objective might be to increase the number of deals closed. If you’re a customer service manager, your objective might be to reduce the number of customer complaints.
Whatever your objectives are, make sure they’re clear and specific. This will help you focus your analysis and make sure you’re getting the most out of your CRM data.
2. Define What Data is Required
Once you have a clear understanding of the business decisions you want to make, you can then decide what data is required to make those decisions.
For example, if you want to understand your customer lifetime value, you may need to gather data on customer acquisition costs, average purchase frequency, and average customer spend.
By understanding the decisions you want to make, you can then identify what data is required to make those decisions. This will help you to focus your data gathering efforts and avoid collecting unnecessary data.
3. Ensure Data is Clean and Accurate
One of the most common problems sales and marketing teams face is inaccurate data. According to a survey conducted by Experian, 99% of organizations believe that their bottom line is affected by inaccurate and incomplete data.
For example, if a salesperson contacts a lead only to find out they’re already a customer, it can be a waste of time for both parties. On the other hand, if a marketer sends an email to a customer with the wrong name, it can damage the relationship.
To avoid these problems, it’s important to keep your CRM data clean and accurate. This means regularly updating and validating contact information, removing duplicate records, and more.
There are many tools available that can help you keep your CRM data clean and accurate. For example, you can use a data enrichment tool to automatically update contact information, or a deduplication tool to identify and remove duplicate records.
4. Train Your Sales Team
Your sales team is the heart of your business. They are responsible for driving revenue, and they have a direct impact on your bottom line. That’s why it’s so important to make sure they are using your CRM system effectively.
Training your sales team on how to use your CRM system is a critical step in leveraging CRM data for smarter business decisions. Make sure they understand how to input and update customer data, how to use the system to find leads and how to track their sales performance over time.
By training your sales team to use your CRM system effectively, you can ensure that they are making the most of the data available to them and that they are well-equipped to drive sales and grow your business.
5. Define and Automate Your Sales Process
Your sales process is the roadmap your sales team uses to guide prospects through the buyer’s journey. It’s a series of steps that defines what actions your sales team will take at each stage of the sales funnel.
Your sales process is also the foundation for your CRM. You can use it to set up sales stages, track sales activities, and automate your sales pipeline.
To get started, create a simple sales process that defines the stages of your sales pipeline. Then, use your CRM to track and automate your sales activities. You can use AI agents to automate this process.
6. Monitor and Manage Your Sales Pipeline
Your sales pipeline is a visual representation of your sales process. It shows you how many deals you have at each stage of the process, and it helps you identify potential problems and bottlenecks that could be slowing down your sales team.
By monitoring your sales pipeline, you can see which deals are likely to close, which ones are at risk, and which ones need to be moved to the next stage of the process. This can help you prioritize your team’s time and resources, and it can help you take action to prevent deals from falling through the cracks.
Your CRM software can automatically track and manage your sales pipeline for you. This can save you a ton of time and effort, and it can help you make more informed decisions about how to allocate your team’s resources.
7. Use Sales Forecasting Tools
Sales forecasting is a critical function for any business. It allows you to predict future sales and revenue, and to plan your business activities accordingly.
There are many different ways to forecast sales, but one of the most effective is to use CRM data. By analyzing the data in your CRM system, you can identify trends and patterns that can help you to predict future sales.
There are also many sales forecasting tools available that integrate with CRM systems. These tools use advanced algorithms and machine learning to analyze your CRM data and make accurate sales predictions.
By using sales forecasting tools, you can save time and improve the accuracy of your sales forecasts. This can help you to make smarter business decisions and to grow your business more effectively.
8. Compare Sales Forecasts to Actuals
Sales forecasting is when sales managers predict future sales performance based on historical data. Forecasting can help you set goals, identify potential issues, and make data-driven decisions.
You can use your CRM data to create accurate sales forecasts. Start by looking at your historical sales data, and then factor in any new leads and opportunities in your pipeline.
Once you have your forecast, it’s important to track your actual sales performance. Compare your forecast to your actual sales data to see how accurate your predictions were.
If your forecast was off, take a look at what might have caused the discrepancy. This will help you make more accurate forecasts in the future.
9. Look for Trends and Insights
Trends and insights can be found in all areas of your business, from marketing and sales to customer service and product feedback. But, your CRM data is a goldmine for finding these trends and insights.
By analyzing your CRM data, you can identify patterns and trends in customer behavior, as well as gain insights into what’s working and what’s not in your business. This can help you make smarter decisions and take action to improve your business.
For example, if you notice that a large number of your customers are leaving negative reviews about a certain aspect of your product, you can take steps to fix the problem and prevent churn. Or, if you see that your sales team is consistently closing deals with a certain type of customer, you can use that information to inform your sales and marketing strategies.
10. Segment Your Customers
One of the best ways to use your CRM data is to segment your customers. By dividing your customers into different groups, you can create targeted marketing campaigns that are more likely to resonate with each segment.
For example, you could segment your customers based on their purchase history, their demographics, or their interests. Then, you could create different email marketing campaigns for each segment that highlight products or services that are most relevant to them.
Segmenting your customers can help you improve your customer relationships and increase your sales. After all, customers who receive targeted offers are more likely to make a purchase.
11. Personalize Your Marketing
CRM data can also be used to personalize your marketing efforts. By segmenting your customers into different groups, you can create targeted marketing campaigns that are more likely to resonate with your audience.
For example, you could create a campaign that targets customers who have made a purchase in the last 30 days with a special offer. Or, you could create a campaign that targets customers who have not made a purchase in the last 90 days with a re-engagement message.
The possibilities are endless, and with CRM data, you can create highly personalized marketing campaigns that are more likely to drive results.
12. Use CRM Data to Inform Other Business Decisions
Your CRM is a treasure trove of customer data that you can use to inform other business decisions. For example, if you’re considering launching a new product, you can use your CRM data to identify potential customer segments that might be interested in that product.
Similarly, if you’re thinking about expanding into a new market, you can use your CRM data to identify potential leads in that market. By using your CRM data to inform other business decisions, you can increase your chances of success and minimize the risk of failure.
Conclusion
CRM data is a treasure trove of insights. With the right strategy, you can use it to understand your customers better, improve your products, and streamline your sales process. Follow the tips above, and you’ll be on your way to making smarter business decisions for your company.