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Q: I have been advised that you can make more money from looking after existing clients, than finding new ones. My adviser tells me that to do that properly, I need a hosted solution, which integrates telecoms and a CRM database. Is that advice to be followed?

Apr 20 2007

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Answered by: Jackie Jarvis Ask a question

Yes, your adviser is right in saying that. I am not sure that you need a completely integrated one though. A good CRM and a telephone I have always found to be enough. It will depend on exactly what sort of business you are, what you want to achieve with it and how much you have to spend on it.

There are 3 main ways to grow any business. Get new customers, increase the amount your existing customers spend with you and increase the frequency with which they do business with you. It is easier and less expensive to build on the existing base you already have, than it is to develop new customer relationships.

You will need a marketing plan to maintain your relationships and build business with existing customers in the same way as you would to attract new ones. You will definitely need a good CRM system to keep track of your business relationship and set up a regular communication process. This needs to be one that is easy for you to use and maintain. To build and grow your business with existing customers you will need to think about the activities that will help you do that. The system you use will need to facilitate those activities. The activities may include regular review meetings, selling up on existing services, cross selling to other products/services, telephone contact, email and newsletter contact invites to hospitality, invites to special events etc.

A valuable and interesting online newsletter is a good way of keeping in touch with your customers and keeping you in the forefront of their mind and for that are many good online services that are easy to use. I can recommend two in the resources section of my site www.moneymakingmarketingideas.com

I hope this helps. There are loads of ideas and ways to increase the business you do with your existing customer base in my book www.85ways.co.uk. There is a whole section all about boosting business with existing customers.

Comments [4]

Comment by Adam Wayland

Thursday 2nd August 2007

For those not in the know, CRM refers to customer relationship management. It's a pretty broad term that cover tools used by companies to manage their relationships with customers. This can include anything from capturing and storing customer information to analysing it to try to improve your marketing techniques.

You should read this article which explains CRM in more detail and this Need to Know article, which also offers some top tips.

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Comment by Duncan Collier

Thursday 2nd August 2007

Jackie, C'mon, answer the question! which CRM system to buy? Which one would you go for and why?

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Comment by Adam Wayland

Thursday 2nd August 2007

I think the question is actually about whether a hosted solution is needed that integrates telecoms and a CRM database, rather than reqesting a specific recommendation.

If anyone wishes to comment on a CRM system that they've used and explain why they chose it, please do. But please be aware that it might not suit everyone's needs. My advice is to research what's out there with your own needs in mind.

I agree with Jackie that it depends on what sort of business you are in and what you want from the system, which makes it difficult to point to one system that will suit everyone.

As Jackie says, it 'needs to be one that is easy for you to use and maintain. To build and grow your business with existing customers you will need to think about the activities that will help you do that. The system you use will need to facilitate those activities.'

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Comment by Polly Anderson

Wednesday 5th September 2007

In our experience, buying a CRM system is often viewed incorrectly as the 'holy grail' for all selling challenges. It's not - and many tens of thousands (and more) are wasted on fancy CRM systems that are too complex, don't measure the right things, aren't used correctly (because they're viewed as an unwelcome control and monitoring tool) and thus often go unused.

That's not to say that there's not a place for CRM systems, but be sure what issues you hope it's going to fix. Feel welcome to read our slightly more radical views on CRM here - http://www.salespunch.co.uk/Content/soapbox/crm.aspx

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