Why do we need CRM software

This article explains need of CRM software in business sector. It not only stores all the business related data of consumers and business partners, but also helps business to grow by promoting cross-selling and up-selling.


CRM denotes customer relationship management. CRM software ensures that business enjoys good relationship with its customers. It takes care of its customers and maintains their details. In this way, sales increase as number of consumers getting enrolled in business increases. It is very valuable software, business can ever implement. It makes a remarkable impact on business than any other employee that is employed for same purpose. Such is its significance and such is its role. It is designed to store both structured and unstructured customer data and interpret it. It manages the customer related operations from business point of view. It engages more and more customers and supports company to do the same by automating processes and workflows.

Reasons why we need CRM software

  • Maintains history of customers : Maintaining a record of all the customers is very essential so that we can go back and check on those records when they need to be checked. Records should be maintained to know about various purchases customers have made. This is where CRM software comes in handy. Sometimes customers want to know regarding their last purchase or else sometimes there arises a problem related with purchase. In both the cases, CRM software effectively reproduces the stored data. To increase sales, companies by making use of CRM software can give more offers to their loyal consumers. This will effectively increase company's sales and business. Company's owner or employees cannot store in everything in their memory. It tracks all the consumers and their associated events and tasks. It keeps all the data stored from different sources. It helps to grow business from small to large. Maintaining data within books or other such traditional methods are not enough for long terms. CRM software therefore is the best solution

  • Serves as contact management system : Companies need to maintain contact with vendors, business partners etc to keep business running and CRM helps as contact management system. It organizes customers and contacts. It divides customers into different categories like active consumers, lost consumers, partners, important partners, inactive consumers, suppliers etc. It does not create spreadsheet which is complex, instead makes it very simple. It helps to build a long-term relationship with various consumers

  • Helps to determine status : It is important to know statuses as it helps to know which consumer is calling back for purchases and which are not. The ones which are calling back actually are interested in buying more from companies and that means they are loyal consumers. CRM never lets to miss out any chances as it records status of the consumers very well. It helps in decision making as companies can predict how much sales are they going to make in coming months and how much are they making in present. This way they can make effective decisions which will profit their business. It is greatly helpful in keeping oneself updated. Thus, companies can keep their consumers completely satisfied as they are aware with all the events and tasks which are up-coming. Not even a single task due date will be missed. Any business that is well organized will run very efficiently

  • To grow business : Using CRM software, companies can direct sales people to cross-sell or up-sell. From time to time, it becomes essential to determine market opportunities. It is also very essential to identify products which are new in market. One can also increase calling efficiency by using CRM software of sales organization. It can be used to trigger for deal closure. In case of up-selling, similar products are brought into attention of customers. Selling mainly makes use of tags which have been previously inserted in memory. In case of cross selling, customers previous purchase is kept in mind and new products are suggested to him. All this data that is stored will help CRM software to boost business

  • For sales and marketing purposes : It segments contacts effectively, targets messages and information that is fed. It helps to determine the exact number of leads email campaigns were able to generate and how many of them in turn led to sales. This way even a single sale opportunity do not get lost as CRM software will enable follow-up calls and maintaining contacts with existing and interested consumers. It does not use up lots of time like sales administration does

  • For customer service team : It effectively segments all the existing accounts. It does its work in standard manner unlike customer service team who can fail to follow up customers. It saves the whole data in single piece i.e., complexity is avoided. Simple spreadsheet so obtained enables seeing the complete picture. Consequently service becomes strong and quick. Communication and interaction with consumers reach at nice level. This is because CRM software saves the relationship information. CRM will distinguish important customers from other customers and potential business partners from others. It efficiently deals with all the requests and complaints which are related to services. In this way, none of the issue gets overlooked as each and every one of them gets reported and becomes timely visible

  • Decision making in business : Usually decision making is done based on guess work. It can come out right or else one need to encounter heavy losses. When all the data and results get smoothly complied then decision making becomes easy. Decision made on trustworthy data reports is rarely wrong. CRM software does the whole work of providing trustworthy reports. Such trustworthy data when is made readily available then one can easily know the requirements for production, delivery, cash flow etc. Using it companies can easily know key performance indicators. Consequently high performance can be rewarded

  • Enables forward view : It enables forward view into revenue field rather than giving historical view. It also enables future view in day to day trends, tasks and events. They indicate profit and revenue metrics. CRM software will determine problems of future quiet early. This way more perfect approach can be taken to solve them and manage the whole business. One can use CRM to posse's leads from websites, from campaigns directed by emails, from seminars, references, various trade shows etc. These leads can then be sent to the concerned sales people. Leads can also be used for cross-selling or up-selling tasks. New products and various markets and commercial opportunities can be determined


CRM software is software for customer relationship management. It helps business to grow by providing forward view rather than giving historical view. It stores each and every business related data of customers and business partners. If aim is to run business efficiently then CRM software is a must. It helps to determine status and serves as contact management system. It engages more and more consumers and at the same time provides company complete support to run business efficiently.

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Author: Mithra21 Nov 2017 Member Level: Bronze   Points : 5

CRM is the acronym for Customer Relationship Management. In every organisation, for its smooth working, customer relationship management is an important factor. Customers are the king of a business organisation and thus they have to hold on to their existing customers and also have to find out new customers.

For having a good relationship with customers the employees of the organisation should be treated properly because they are the ones who interact with the customers.

Only with good customer relationship management would we be able to spread the brand name of the company in the minds of people and thus increasing our profit and goodwill.

In the competitive world customer's tastes and preferences change due to the improvements in the science and technologies.Thus it is difficult to retain the existing customers and to obtain new customers.

Thus for flying high for an organisation customer relationship management is important.

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