Disadvantages of CRM Marketing
Difficulties with adaptation to the platform
From a formal point of view, the use of CRM systems should increase the efficiency of managers. But to achieve the result, it is necessary to choose the appropriate option and organize retraining of employees. In reality, this is rarely given attention, which is why managers are forced to independently master the platform and study its capabilities.
Delayed effect
The goal of CRM marketing is mom database to build customer loyalty and improve the company's reputation, so it is impossible to achieve a quick increase in sales volume and other numerical indicators. At the same time, these factors are not directly related, and often effective interaction with customers allows you to retain existing consumers rather than acquire new ones. Although later the use of CRM systems begins to have a positive effect on the amount of profit.
What is profit?
High cost
Implementation of CRM systems is, in principle, a rather expensive process. When drawing up a budget, in addition to the cost of the platform itself, it will also be necessary to allocate funds for periodic maintenance, hiring and training of personnel, updating equipment and other related activities. In many cases, it is precisely the need to recoup significant implementation costs that is the reason why the visible effect of CRM marketing appears only over time.
Recommended articles on this topic:
Marketing Department KPI: 11 indicators and calculation example
Marketing Tips: How to Show That Your Product is the Best
How to increase the flow of customers by choosing the right method
When is it worthwhile to implement CRM marketing?
In what cases is it worth implementing CRM marketing:
A large number of clients. At the same time, personal contact with each of them is difficult, it is necessary to automate the interaction.
High cost of goods or high customer value. It is necessary to pay attention to the volume of cash receipts from the sale of a specific product/service or from all transactions made with one consumer. When selling cheap or poorly sold goods, it is difficult to recoup the costs of implementation.
Ability to collect customer data. To approach consumers personally, you need to have information about them. So, first identify sources of information and check their availability.
How to Build a Contact Database for a Mailing List
CRM marketing is most widely used in the B2C sector, where there are a large number of customers: consumer goods, retail sales, e-commerce, hotels and restaurants. This marketing management model can be useful for automobile companies, travel companies and credit institutions.
When trading with other organizations, CRM marketing also becomes effective if sales are made to many customers. Here, a product with a long sales cycle or regular repeat purchases is needed. For example, selling building materials to small firms or providing legal services to small businesses.
Read also!