“Customers don’t tell you when and why they are at risk of switching to a competitor or just dropping out altogether. This kind of business intelligence is becoming a much more important corporate tool ”The Findable Consulting Blog
There is one phrase from the Enterprise lexicon that is being adopted at ever-increasing rates by small business sales managers: Customer churn.
With the rise of the Internet and cloud computing, sales managers are presented with both risk and reward in the form of increased competition and on-demand software that allows them to revolutionize their sales pipeline.
Unfortunately while competition is good, it is often fatal, with over half of UK startups closing shop before they reach five-years old. Because of this, the choice of CRM software delivered over the Internet is perhaps one of the most critical decisions it can make as it strives to win new customers and keep old ones.
Customer attrition, or churn, is the toxic metric that indicates how likely they are to survive. But its also one of the most difficult to predict and track, largely because analytical reporting is still evolving and is largely dependent on the inputs provided by the sales force. The bigger reason may be because CRMs focus too much on delivering useless statistics rather than providing business intelligence which is a much more elegant environment for a stressed-out sales manager to operate in.
Finding a way to morph CRM analytics and Customer Analytics into a business intelligence platform is a tough task. However, trying to do this in a visual manner, is perhaps even more challenging. This is the reason why many startup sales managers feel like the CRM they have chosen, has let them down at the most basic level, failing to give them the insight they need to LEAD rather than follow their sales force.
Sales managers need the ability to, for example, target higher-value customers who are most likely to defect and who are also most likely to respond to an incentive offer. This has a direct implications on cost: It may simple require an email to a customer who has not been contacted in the last thirty days or it may be more substantial requiring a high-gloss brochure by mail.
But predicting who these customers are and then taking manual action via the CRM, can be challenging tasks, especially when reliant on a growing sales force spread across multiple territories.
This is where the sales manager not only needs a set of visual performance graphs to gauge where customers are in his sales pipeline, he most likely needs a powerful set of automation tools that can automagically keep in contact with the customer, thereby reducing churn.
The larger your customer base, the more usefull these technologies will be to the sales manager.
So does this capability yet exist in the current crop of CRM technologies?
We are happy to say it does in the Getscorecard system, which as you guessed uses a “Scorecard” approach to evaluating how happy your customers currently is with your products and services.
Customer Health Scores combined with automated alerts reduces customer churn by notifying your team when a health score drops allowing immediate action to be taken.
Activity widgets track all sales activity and displays it in data graph format, allowing a manager to identify the activities of your stellar performers, invaluable for the dreaded Monday morning sales meeting.
It’s important to stress that the above all takes place within a SINGLE view giving sales leaders an unparalleled level of insight into customer satisfaction and sales force performance.
Consequently, while customers may not tell you when or why they are moving to a competitor, your CRM system can remove common reasons for their departure through the use of scorecards, health scores, auto tasking and CRM performance graphs.