I have touted the benefits of a sound, current and accurate customer relationship management software for any business concerned about providing a consistently superior customer experience in past posts.
In a survey conducted by LexisNexis, makers of the CRM software Interaction, and managed by my friend Ted Seward (#tedseward) they find that 63% of law firms plan additional CRM investments in 2014.
The benefits of doing so include:
- Better client relationships. The more you know, and remember, about clients (or customers) the more your clients know you care about them. This enables you to forge a much stronger connection and a deeper relationship with your clients.
- Improved ability to cross-sell. The more you know about your clients’ needs and wants the better able you are to provide the solution to their next problem.
- Increased team colloration. This is where many firms who fail to require their executives to use the CRM fail to reap the benefits of the CRM. I know this from having managed the implementation of CRM software where the management team thought it was a good idea but would not learn, or use, the tool themselves.
- Improved efficiency in serving clients. Again, the more you know about clients, the better able you are to serve them. If everyone is using the CRM to record their customer interactions, EVERY client interaction, then others’ are able to serve the client with the knowledge of what has been previously discussed with the client.
- Greater staff satisfaction. The more knowledge your employees have the more empowered and engaged they are. Having an accurate and up-to-date CRM that everyone uses and has acces to helps employees solve client problems. Doing so makes employees and clients happy.
- Increased revenue and profitability. Once everyone learns, and uses, the CRM productivity increases, sales cycles decrease, you have the ability to provide additional products and services to clients and client satisfaction increases.
- Cost savings. While the start-up of a CRM software is expensive and time-consuming, over time the benefits far outweigh the costs. Memebers of the sales team are able to better schedule meetings with prospects in the same geographic area. Client-service reps are better able to resolve a client’s concern. You now have a central client and prospect database that everyone can access rather than everyone keeping a separate spreadsheet or contact database on their computer.
- Less client attrition. When a client is engaged with only one member of a professional services firm, the risk of attrition is 40%. When five or more partners are involved in a client relationship, the risk of attrition falls to less than 5%.