Startups all across the globe are glorified as the ultramodern way of taking control of your life, circumventing nine to five jobs and throwing them into the bin.
Nevertheless, according to a report published by Small Business Trends, on business growth it states that approximately 40 percent of startups are profitable, while 30 percent of them are at break-even points and the rest 30 percent losing money.
Therefore if you are having any second thoughts on your big idea, read through this article as we unravel the real Kryptonite(s) that can stall your super ideas and how buying CRM can change that for you.
What is CRM?
CRM is a business growth technology and a strategy that integrates several prospects of customer relation to convey value to the customers and retain the same for businesses. With IT solutions, world-class customer relations can be easily achieved and utilized to establish brands in the marketplace.
In other words, CRM is a tool that helps one understand their target customers, their needs and how brands can sustain that customer relationship to propel your startup on the basis of that relationship.
Now there are three types of easy to use CRM software that is available in the marketplace:
This is a CRM software that is based on delivering value to the customers, better than the rest of the competitions and integrates the same in product development and structure of the business.
This CRM software focuses on the automation of sales, production, and service as per the requirement of the consumers.
This CRM software focuses on gathering, storing, distributing and thereafter integrating and analyzing consumer-facing data to cater value to both customers and businesses.
There are several models of CRM tools available in the marketplace. Nevertheless, in this article, we shall discuss the IDIC model which aids businesses to ascertain the customers who are of high value and loyalty towards the brands.
Identification: Find out who is the customers and understand them well.
Differentiation: Identify which customer has the greatest potentiality and thereby have more future prospects.
Interaction: Makes sure that businesses can perceive the customer’s desires, and understand the customer’s possible relationship with other brands.
Customization: Personalize offers a means of communication to make sure that the customer’s desires can be fulfilled.
So now that you are aware of what is CRM let us move on to the five most important reasons as to why you must buy CRM for your startup organization and stick to this cutting-edge business growth technology and tool.
THE “KRYPTONITE(S)” TO YOUR SUPER IDEAS
According to a report published by Small Business Trends, it states that more than 29 percent of startups fail because of cash crunch and more than 18 percent for cost and pricing issues.
Therefore it is important for any startup business to keep their pricing compatible and yet generate enough profits to keep the krypton of cash crunch at a bay.
This is over here small business CRM software comes into play as it can help businesses to understand their customer’s choices and buying patterns to integrate the same in product development and provide pricing that predicts good business growth.
Relations with its customers is the spine of any business, especially startups as they are more consumer-based models of business and this is why more startups are in need of incorporating CRM strategies for their growing businesses.
According to reports among all startups that fail more than 17 percent are those that failed to develop and deliver a user-friendly product or service and another 17 percent failed because of inappropriate business models that underlined their offerings.
Therefore, this data even illustrates the growing importance to buy CRM in developing a consumer-based model for business that can help in building user-friendly offerings.
The idea of delivering a customer-friendly offering, for any startup is a challenging task, which needs the right team to pull that off.
As per statistics and data that we referred before about 23 percent of startups fail due to their team’s inefficiency in catering a customer-friendly offering to the consumers in the marketplace.
Therefore as a startup entrepreneur, you need extensive staffing and training programs that can aid you in employing the right team to focus on providing value to the needs of your customers.
This is over here CRM for small business once again comes into play as it can help you to identify the right persons for your job and even train the marketing, sales, and support teams with strategies to reach customers and sustain them over a long period of time.
Just as there is no way that we can write an article without any proper research, similarly the same applies to any startup, as comprehensive market research is most important and a must for the growth of any startup business across the globe.
According to research, it has been found that 42 percent of failed startup ventures were not successful since they did not start their business after performing any market research about their proposed offerings.
Additionally 13 percent of startup businesses failed and are so ill-fated because they launched their business at a bad time, statistics which show the extent to which startup organizations ignore real-time market trends while starting their businesses.
Therefore, once you buy CRM, it is a business growth technology that is capable of storing, integrating and analyzing consumer data which aid startups to find and focus on the right market at the right time to launch the right product or service in the marketplace.
As per statistics and data that we referred even before 14 percent of startups fail due to poor or ineffectual marketing and another 14 percent for ignoring their customers.
But why do startups fail at marketing or while conducting their after-sales service?
Even though there can be multiple reasons that can make it happen but one of the most important of all these factors is because of not knowing your customers.
CRM for SMB and startups helps growing businesses to understand their customers thoroughly so that they can cater to their customer’s needs.
This is exactly where Analytical CRM comes into play which aids in gathering consumer-related data and with Operational CRM that can ensure faster services to their customers and Strategic CRM that can help in marketing their offerings strategically to target relevant consumers based on their behavioral and purchase patterns which can be easily collected, stored and thereafter analyzed once it is hived inside the CRM database.
Therefore now that you know why your startup needs to buy CRM and implement CRM strategies for your business growth, and the right type of CRM to go for to overcome each of these hurdles at the beginning of your entrepreneurial journey, it remains without any doubt that small business CRM software is that much-needed firepower which your startup needs as the next big weapon for victories in this competitive global marketplace.