Due to a rapidly changing business landscape, manufacturing companies face several challenges today. These challenges range from intense competition, rising costs, shrinking markets and margins, changing customer preferences and demand, changes in technology, and many more, significantly impacting a company's bottom line and long-term viability.
While we have seen companies try new creative ways to stay competitive, one area or strategy often overlooked by manufacturing companies is developing and implementing a Customer Relationship Management (CRM) strategy.
In Trinidad and Tobago, most markets are already established and customers tend to have certain preferences or biases towards specific brands or providers. However, providing exceptional customer experiences in this region can be quite challenging. Even companies with long-standing service histories and well-known brands have to exert more effort in retaining their customers and exploring new markets to expand their reach.
This is where a solid customer relationship strategy comes into play, which we will discuss in this article.
A CRM strategy is a business approach that focuses on managing customer relationships to increase sales, improve customer satisfaction, and grow the organisation's overall profitability.
It looks at achieving all of this through the perspective of the customer and the management of customer relationships in three stages;
A well-designed CRM strategy brings all three departments together to focus on the common goals and objectives of the organisation, which is growth.
We've been around for 35 years, and we are well known; however, our revenues have been falling by approximately $2M - $3M each year over the last few years - (Director in Office Equipment Industry)
If we look at how most companies today, it's apparent that there is some complacency as it relates to executives thinking that their tenure/legacy will be enough to maintain sales. While this does have some merit, tenure is not enough of a business strategy, especially with the younger generations.
Without a CRM strategy, organisations tend to face several negative impacts that impede business growth. Here are a few examples:
Sometimes, these negative impacts impede business growth by reducing customer retention, sales revenue, and operational efficiency.
While there is no one way, below is a step-by-step approach I believe manufacturers can adopt once they are committed to implementing a CRM strategy.
Step 1: Identify business goals and objectives
The first step in developing a CRM strategy is identifying business goals and objectives across all of your revenue-generating departments (Marketing, Sales and Service). This involves looking at the business areas that need improvement and setting goals that align with these areas.
For example, a company like Lifetime Roofing may recognise that they want to improve the order-to-fulfilment stage of their sales process, to either enhance an existing process and exceed customer expectations or to mitigate against customers cancelling orders because the item(s) are taking too long to be delivered. Their especially if their reps work on the field. Implementing some technology in this space will help solve this problem.
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Step 2: Identify Key Stakeholders
The next step is identifying key stakeholders in the developmental process of your CRM strategy. This may include sales and marketing teams, customer service representatives, IT personnel, operations and senior management.
Step 3: Analyse Customer Data
Once the stakeholders have been identified, the next step is to analyse customer data to identify trends, preferences, and behaviours. This data can be obtained from various sources, such as social media, customer surveys, and sales data or hiring an external consultant.
Step 4: Define Customer Segments
The next step is to define customer segments based on the customer data analysis. This involves grouping customers based on their preferences, behaviours, trends, needs, etc. Customer segments help in the development of personalised marketing and sales strategies.
Step 5: Develop a CRM Plan
The next step is developing a CRM plan based on customer data and segmentation. This plan should include a clear description of the company's CRM objectives, strategies for achieving those objectives, and the technology needed to support these strategies.
Step 6: Implement the CRM plan
Once the CRM plan has been developed, it is implemented. This involves selecting the appropriate CRM software and training employees to use it effectively.
Step 7: Monitor and evaluate
The final step is to monitor and evaluate the CRM strategy's effectiveness regularly. This involves collecting and analysing data on customer satisfaction, sales, and other relevant metrics.
Technology is critical in supporting a CRM strategy for manufacturers as it enables companies to collect, store, and analyse customer data more efficiently, which is essential for developing effective growth strategies.
CRM tools like chatbots, automation, sales templates, and strategically using email marketing software can also help improve communication and enhance sales and customer experiences during and after the sale.
There are several CRM software options available for manufacturing companies to choose from. Here are some popular ones:
These are just a few examples of CRM software options for manufacturing companies. It's important to carefully evaluate your manufacturing business's specific needs and requirements to choose a CRM software that aligns with your objectives and effectively supports your business processes.
As a manufacturing company, many obstacles can affect your success and sustainability. Fortunately, implementing a well-planned CRM strategy can be a game-changer. You can improve customer satisfaction, promote teamwork, and boost revenue by utilising a step-by-step process and involving key players. It's also essential to leverage technology to support your CRM efforts. With the right approach, your CRM strategy can help you achieve your business objectives and stay ahead of the competition.