Is CRM useful for small and medium sized businesses?

Filed by team twago on September 13, 2010

All eyes on the customers

Systematic customer orientation is one of the most important pillars of modern corporate governance. Individual customer service and a direct sales approach are particularly relevant for large enterprises. For some time now, modern information technologies have made possible a direct sales approach and systematic customer care.

The idea is simple: Computer systems can access a shared database, which contains all customer related activities. With just a click, anyone in the company can access the entire profile of a customer. If the database is large enough, it is possible to draw conclusions about the consumer behaviour of a target group. With the help of good CRM (Customer Relationship Management)-systems, the performance of a company can be greatly improved.

The advantages are clear:

• Identifying interesting customers
• Systematising customer relationships
• Binding customers
• Winning new customers or regaining former customers

However, the prevalent CRM tools are not suited for every company. While large businesses have been practicing Customer Relationship Management for years, small and medium-sized businesses are relatively new to it. The reason for this is the expenditure of implementing a CRM-system. Particularly small businesses are often less organised. The lack of personnel, as well as a low standardisation within the departments requires a complete restructuring of the entire company and takes up a lot of time. Processes, which were in use so far, need to be defined and optimised with regards to the CMR system. In addition to that, the entire team needs to be trained on the new system.
The quality of a CRM program depends greatly on the entered data. A successful and personalised customer service is only possible if the customer data is maintained continuously and meticulously. CRM systems for small businesses, which are adjusted to the needs of small companies, already exist. Unlike providers such as SAP or Oracle, which are strongly project orientated, CRM solutions for small businesses focus on the technological experiences and possibilities of the latter.


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