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CRM Improve Sales Performance- Nowadays, a customer relationship management (CRM) system is all but indispensable for keeping your relationship with existing customers strong. And maximizing your opportunities to develop relationships with new customers. Of course, the big question when it comes to any CRM solution is: Is it working?
If it isn’t working, you’ll probably notice warning signs such as:
- Complaints from your sales team that they don’t have the tools needed to convert leads or close deals
- Bottlenecks in the buyer’s journey (prospects don’t convert to leads, leads don’t convert to customers, etc.)
- A low customer retention rate/high customer churn
- Lack of communication between your marketing, sales, and customer service departments
On the other hand, if your CRM solution is working, then you’ll likely see:
- Your sales team is more productive, and more likely to meet (or exceed) its quota
- More prospects turn into leads, and more leads become paying customers
- You enjoy a higher customer retention rate
- Your support team is able to resolve the vast majority of customer concerns quickly and effectively
Those are some big benefits associated with a well-designed CRM, right? In fact, research indicates that CRM systems play a huge role in boosting sales performance across the board. For example, consider this statistic: 79% of MQLs (marketing qualified leads) are never converted to sales if a CRM system is not in place. That’s huge!
Without a doubt, a well-oiled CRM machine can kick your sales performance into overdrive. Let’s talk about some of the nuts and bolts of setting up your CRM — and by extension your sales team — for success.
Incorporate a Referral Strategy into Your CRM
Referral marketing (also known as “word of mouth marketing”) is probably the single most effective form of advertising that a company can get. Plenty of evidence backs this up. For example, look at these numbers:
- 84% of B2B decision-makers begin their purchasing process with a referral.
- People are up to 4 times more likely to buy a particular product when they are referred by friends or family members.
- A whopping 83% of satisfied customers are willing to give referrals (although less than 30% actually do).
The point is, referrals work. They can be a wonderful driver for your business and can help your sales team to “cherry-pick” high-quality leads that will quickly convert.
Okay, so how does your CRM system fit into the picture? It’s relatively simple to develop a referral process within the CRM that will help your team to identify and leverage those opportunities. Here’s an example process:
- Build a list of satisfied customers in your CRM. If possible, match each customer to the sales rep who had the strongest rapport with him or her.
- Develop an automated thank-you email template for the customer, but allow space for a personalized touch from the sales rep. At the end of the email, ask for a referral. For instance: “Do you know anyone who could benefit from our product? If so, please let us know!”
- [Optional] Add an incentive for them to refer a friend. We’re talking about $10 for every referral that converts, a one-time discount on their subscription fee… you get the idea.
It may take a little planning. But in no time at all, you can set up a comprehensive referral process within your CRM system. And set up your sales team for an influx of warm leads!