Can you remember when you still knew all your customers by name? It might have been possible, back in your business's earliest days.
But as time goes on, all businesses develop and change. Suddenly, your small business isn't so small any more. Instead of interacting with customers, you're overseeing a team of employees. And before long, you might have too many customers to count.
When you reach that point, it's time to rely on a customer relationship management (CRM) database. This digital marketing tool keeps track of who your customers are. By doing so, it will tell you how customers interact with your business.
Once you've amassed a database of contacts, it's time to take the next step. Most CRM databases come pre-loaded with helpful analytics features. Read on to learn five of the most valuable analytics reports you can run.
Your CRM database isn't simply a fancy address book. Instead, it's a dynamic record of what's going on within your business at all times. Want to understand how your customers are progressing through the buyer's journey? There's an analytics report for that.
In a healthy sales pipeline, customers proceed through a series of stages. There are three main stages:
Understanding your customers' journey is the first step toward strengthening your sales pipeline.
Next, you can apply that knowledge to generating future sales forecasts. If you want to create a reliable forecast, you have to know what's working — and what isn't. Your CRM database captures granular details about the health of your sales pipeline.
If you want to plan for the future, you'll need to understand your past and present first.
While CRM software is designed to help you manage your contacts, that isn't all it can do. Your CRM database can also reveal productivity patterns within your company.
If you want to use your CRM database to analyze productivity, try using analytics features to discover things like:
Your employees can use these features to manage their to do lists and stay on top of tasks. And when you have a snapshot of company activity, you'll always be able to spot superstars and offer support when needed.
The end result? Greater transparency and less subjective performance reviews. When you use a CRM database to measure productivity, employees always know where they stand.
Your CRM database tracks all your contacts' activity, all the time. That's what makes it a perfect tool for measuring customer engagement.
Use your CRM database to keep tabs on activities such as:
Some software will even allow you to link your CRM database to your company's online booking tool.
Of course, your CRM database isn't just a highlight reel of your wins. When losses occur, your CRM database can provide invaluable insight.
To understand how, let's imagine a common situation. One day, seemingly out of the blue, one of your longtime clients breaks up with your business. You're surprised. What could have led to this situation?
Your CRM database may hold the clues. When you review the contact record, you notice a few unresolved help tickets. It didn't help that when the client's account manager left the company, there was a mix up over their new point of contact. These mistakes led to a big drop off in customer service.
As gutting as it can be to lose a client, there's a silver lining hidden here. Now that you know what caused your client to leave, you can spot at risk accounts more easily. Sure enough, you manage to save a few accounts that were sliding into similar peril.
As time goes on, your CRM database will do more than just tell you the status quo. It will track each new contact and development as your business grows.
One of the most fascinating — and informative — facets is the question of how your business acquires new customers. Are they finding your business through search results? Social media? Word of mouth?
The answers to these questions can inform your future strategies. If some areas are thriving, it might signal even more opportunity. And if other areas are struggling, you'll know they need a little extra love.