Importance Of Customer Relationship Management (CRM) For Small Businesses

A wise man once said, ‘It takes months to find a customer… seconds to lose one.’ The wise man is Vince Lombardi, an American football coach. You may wonder why a football coach talks about customers, but that is not the point of discussion here. The quote is excruciatingly accurate, and that is why customer relationship management is so critical to a business.

We have all heard the famous adage, ‘Customer is king.’ Or another one, ‘The customer is always right.’ It is because customers are your key stakeholders who run the business. If your consumers stop buying from you one day, your business will run into losses, and you will not have much to do.

What Is Customer Relationship Management?

Customer relationship management or CRM is all those strategies and activities a business uses to interact with its existing and potential clients. Customer loyalty and retention are fundamental to your revenue stream. They generate profits for your business, and therefore, today, companies invest a considerable chunk of their money into customer relationship management.

There is nothing too complicated about implementing CRM. In essence, CRM is a simple process. It implements through various modes such as emails, websites, telephone calls, etc. It is often imperative for larger businesses to have a mechanism for CRM. Since they have a vast clientele, they need to manage and analyze.

However, that does not imply that smaller businesses cannot benefit from customer relationship management. CRM adds value to anyone and everyone. It is a process that adds value even to a freelance painter since customers are our eventual source of revenue. And working towards reviewing their behaviors and adopting ways to keep them satisfied are all vital to a business’s survival. You can look into getting CRM software for your business from the many options available in the market, such as VipeCloud. You can hit google and search for ‘what is CRM by VipeCloud‘ and get a whole array of information regarding such software.

Why Is Customer Relationship Management Important?

Let us look into a few reasons why CRM is important and how it can add immense value to your business.

Developing A Topnotch Sales Strategy

A sales strategy is how you promote your products or services to your clients so that they look better than the competition in the market. CRM adds excellent value to a sales strategy, especially for a small business. It provides you a systematic approach whereby you can judge all the trends and drifts in a market and act accordingly.

So, for example, your product may experience seasonal demand shifts. Your consumers may love purchasing from you when it is winters or when Halloween is around the corner. Check on all your demand shifts since this will help you devise appropriate marketing and sales strategies.

Furthermore, knowing your customers and their information such as age, gender, income status, etc. will help you in a more precisely targeted sales campaign. If you know your majority of the customers are women, you will have a better chance of devising sales campaigns targeting women.

Increasing Work Productivity

Workplace productivity is an essential term for businesses and organizations. Productivity is fundamental to efficiency and the ideal use of limited resources. This concept is of utmost importance since companies aim at maximizing their returns out of a limited set of resources. When you know where to focus, you are bound to create better results.

CRM helps you generate a system where you focus only on tasks that produce value. For example, you could assess why a customer stopped purchasing from you or review, which leads to potential, and you can focus on turning them into sales.

Tracking Profits

Your financial managers would often require generating sales and profitability reports to analyze and assess financial trends and movements. These reports are critical to decision-making. When you are a small-scale business, you want all the information you have to make sound choices.

A CRM system will help you generate and manage your numbers better. Only a few clicks can get you some well-structured reports. There is also various software that comes with an in-built bookkeeping feature, which will ease the role of keeping an account of all sales and relating figures.

Boost Business Profitability

We all work for money. It is the most fundamental aim of investing our cash into setting up a business. Additionally, when you are a small-scale enterprise, profitability matters all the more to you. Such companies own fewer resources, and profits are critical to their survival. 

Customer relationship management helps you in evaluating loopholes in your sales cycle. You can review your shortfalls and judge where you tend to lose your customers. Such insights will aid you in working over the stages that are weaker and require attention. CRM also helps in retaining customers by continually keeping a check on them. You can review which customers are potentially falling away and can devise measures to attract them back.

Enhancing Customer Experience

With the introduction of social media and other interactive platforms, the need to improve and incessantly work on customer experience has dramatically increased. Today, the customers are fast and want a prompt response to their queries. They also have many options available, just a click away, which makes them easily distracted. If you fail to address your customers on time, they may jump over to the next available option. If they feel your customer service is not up-to-the-mark, they may leave bad reviews. Because bad reviews play such a negative role in your reputation, you must minimize such incidents.

CRM helps analyze where and how you can improve the experience of your customers. It also assists in judging whether your consumers have positive feedback on your processes and interactions. And if not, how you can add value to your customer service function.


Running a business is all about satisfying your key stakeholders. Without adequately meeting your stakeholders’ needs, you may suffer from problems and rifts in your organization. Customers are key stakeholders in your business. They generate demand, and without enough clientele, you can quickly go into losses. CRM helps you make sure your customers have an elite experience with your business and, as a result, generates customer loyalty and retention. Both of these are fundamental to the profit and reputation of a business. If you are a small-scale business CRM is an essential function since customer retention and profitability are critical concepts for your survival.

Author Bio

Abdullah Rasheed is a Senior SEO strategist for a white-label link building service provider LinkBuildingHQ. He specializes in SEO and SEM techniques. He is passionate about business, marketing & technology and loves to analyze that industry in his spare time and stay in touch with the latest happenings. He also writes technical articles about SEO and digital marketing. Follow him on twitter @Abdullahrasheed for more updates.