Could CRM software unlock hidden sales for your business?

Size most definitely matters when it comes to UK SMEs and CRM (customer relationship management) software. Although many medium‑sized enterprises use CRM software, adoption by small businesses (10–49 employees) remains moderate, while it’s extremely low among microbusinesses (up to nine employees).

According to government research, use of CRM software by medium-sized UK businesses is standard, while some small businesses adopt CRM software and integrate it with their accounting software. Sadly, many micro businesses do not use CRM software, because they believe it to be too expensive and complex.  

In reality, the average cost of CRM software for small businesses ranges from £10 to £50 per user per month, while some platforms offer free entry-level options. And installing, integrating and working with CRM software is much simpler than some imagine, while the bottom-line benefits are highly compelling. 

Did you know? Adopting CRM and other digital solutions has been estimated to boost UK SME output by 7%–18% per technology (source: Department for Business and Trade).

CRM software enables businesses of all sizes to record, store, organise, manage and analyse valuable information about customers and prospects. 

Businesses can input customer contact details into their CRM software, as well as full communication history (eg emails, calls and meetings), sales records (eg purchases, agreements, quotes), marketing activity (eg campaign engagement, customer preferences, etc), support history and customer behaviour (eg website visits, email opening rates, etc).

Centralising such data enables businesses to save considerable time and money by streamlining their processes, while boosting productivity by automating many repetitive, time-consuming tasks. And, thanks to CRM, owners can make better-informed business decisions and improve communication and collaboration between different people and parts of a business. But it is ultimately your sales and marketing that stand to benefit most from using CRM software.

CRM software enables businesses to know much more about their customers and prospects, as well as build stronger relationships by better serving their needs. 

Using CRM software to record all leads means none is wasted or opportunities lost, while you can conveniently see where each prospect is in the sales pipeline (ie the journey they go on that hopefully leads to a sale). Small businesses often lose sales simply because they forget to follow up on leads, but CRM can automate contact reminders to prevent this. Templates can be set up and follow-up emails can easily be automated, while conversations with customers can also be tracked more easily.

CRM software also makes it easy to segment your customers and prospects (ie split them up into distinct groups), so you can reach out with relevant marketing messages to the right people at the right time. CRM also makes it easier to personalise offers and ensure that customer enquiries are professionally managed, with any issues dealt with promptly, which can help to ensure customer loyalty. 

CRM software also makes it much easier to understand which of your products, services or salespeople are your best-sellers, as well as prioritise higher-value leads, track renewal/re-order dates (if relevant) and better understand customer churn (ie the rate at which you lose customers).

You may already have invested a lot of time and hard-earned cash trying to improve your marketing and ultimately boost your turnover. It’s a constant challenge. With so many benefits potentially available, if you're not already using it, maybe it’s time you tried CRM software.

Tech Adoption for Growth is a new, government-funded pilot programme offering free, practical digital support to help SMEs and sole traders in the South West get more value from digital tools. Eligible businesses are assessed and then randomly allocated to receive either one-to-one expert support or the opportunity to take part in expert-led workshops. To apply click here.