Harness customer data to fuel your growth potential

It’s well known that establishing strong customer relationships is central to the success of a business. And, today more than ever before, there is a wealth of data that can be gathered by various parts of any business, showing the history of any given customer—from their marketing preferences to their previous purchases.

Harnessing this data can have a significant impact on both customer satisfaction and your bottom line. For example, according to Harvard Business Review, a 5% reduction in your customer defection rate can increase your profits up to 85%.

Big businesses have successfully built infrastructures to unify the various types of data using Customer Relationship Management (CRM) systems. But, is it possible for SMEs to adopt versions of these systems to leverage the benefits of technology—recording and analysing sales, marketing and customer service data?

The issues faced by SMEs when it comes to data

Although gathering detailed data from every single customer might sound daunting, the truth is that your business probably already has it filed. The problem arises not from the data itself, but rather how and where that data is stored—as well as how easily it can be delved into.

For example, a 2017 study from Deloitte found that 70% of small and midsize businesses are still using basic systems. 31% of companies have no system or paper-based records, and a further 39% use spreadsheet-based systems.

It’s not hard to foresee that, as these businesses experience growth and collect more data, those records will become more fractured and harder to utilise.

But, within that data is the key to unlocking real growth potential. By unifying all the different communications and sales information you have on a customer, you can create a compelling picture of your relationship with them. That means anticipating their future needs, analysing their purchase journey, and providing them with a superior service thanks to your in-depth knowledge of their wants and needs.

Large businesses have been using Customer Relationship Management (CRM) systems to pull together this information into a form that offers an effective single customer view. The effect can be transformational, allowing for better customer service and more profitability.

For SMEs, this approach has often been viewed as being out of reach due to cost and complexity. Thanks to advances in technology, and several software partners building solutions aimed at smaller enterprises, the time has never been better for SMEs to unleash the power of a CRM.