CRM Advantages and Disadvantages

Advantages and Disadvantages of CRM

The acquisition of prospective customers is the key for companies to increase sales. This is where CRM (Customer Relationship Management) comes into focus.

This article introduces you to the basics, advantages, and disadvantages of CRM, which plays an important role in marketing.

The following are some of the advantages and disadvantages of using a CRM in your sales department, which should ideally cover the disadvantages while taking advantage of the expected benefits. Let's consider the most appropriate operation for your company.

Advantages of CRM

1. Improves customer satisfaction

One of the advantages of implementing CRM is that it makes it easier to understand the trends of existing customers, which leads to improved customer satisfaction. As salespeople accumulate customer information, it can be visualized in the system.

The data can be output as graphs and reports in an easy-to-understand manner, and the information can be shared within the company.

Also, by analyzing your information in detail, you can implement more accurate measures than ever before. This can easily lead to improvements in the current situation, and marketing that grasps the needs of each customer can be realized.

2. Expected to improve business efficiency

If you can strengthen the collaboration between sales and related departments through CRM, you can improve operational efficiency.

Centralizing internal information makes it easier for anyone across departments to get the information they need right away.

For example, if the sales department and the customer support department can share information quickly, they can provide the best possible response to each customer and offer higher quality services.

One of the great benefits of CRM is that it eliminates the need for a single person to be in charge of everything and allows salespeople's knowledge to be used effectively within the company.

3. Can be used for management strategies

CRM tools store all kinds of customer information data. CRM tools allow you to visualize the results of your organization and the results of individual sales reps.

Some of the data includes information such as lost orders and cancellations, and analyzing similar cases can lead to an investigation of the cause. The benefit of implementing this system is that you can understand your company's issues and weaknesses and use them for your management strategy.

CRM data is an important source of information not only for the sales department but also for the management team involved in corporate management.

Disadvantages of CRM

1. Initial and monthly fees will be incurred

Keep in mind that implementing a CRM tool will incur financial costs. The cost rates vary depending on the type of tool. The on-premise type, where the software is installed on the company's server, tends to incur higher initial costs since the equipment installation and IT systems are required at the time of implementation.

On the other hand, the cloud computing model, which uses software over the Internet, is characterized by its ease of reducing initial costs. There is no need for system maintenance costs, making it easy to start at a low cost.

2. Reviewing workflows and employee training costs money

It is necessary to review the workflow in the preparation stage of implementation and hold briefing and training sessions for employees to make the CRM tool take root. The disadvantage of this is that it places a workload on the department in charge, even if only temporarily.

CRM is an effective tool for building good customer relationships. It is important to allow for a certain amount of operational cost and time before deciding on implementation.

3. Internal security measures are essential

Since CRM handles your personal information, there is a risk of an information security incident.

It is important to disseminate basic knowledge about the safety management of personal information and prevent information leakage within the company.

In particular, it is necessary to take precautions when sales departments go out of the office or when remote workers work outside the office. Take these security measures.