Login

Using CRM to Increase Revenue & Competitive Advantage

Instructor: Savannah Samoszuk

Savannah has over eight years of hotel management experience and has a master's degree in leadership.

Every business wants to learn ways to increase their revenue and give them a better competitive advantage. This lesson will discuss ways that your CRM can increase revenue and give you a better competitive advantage.

Customer Relationship Management

Using customer relationship management (CRM) is a good way to increase your revenue and competitive advantage. CRM is a way to track and manage customer information, customer interactions, and customer preferences. It helps to make the whole customer service experience smoother while also building increased revenue and a competitive advantage. Using CRM will make it easier to convert sales, up-sell, cross-sell, obtain referrals, build long-lasting relationships, and communicate easier with your customers.

Increased Sales

CRM provides access to customers' preferences, purchase histories, interactions and past issues or complaints. This increased amount of information makes it easier for a salesperson to create a sale. They are able to see all of the communication between the team and the customer as well as details on the customer. For example, the salesperson might see that the customer's hesitation was due to the price. This can help the salesperson in the next conversation to overcome the price sensitivity with the customer. For instance, Sally didn't want to upgrade her Internet service because of the cost. When she called in, the new salesperson saw her hesitation and was able to offer her a special 1-time rate.

Another way using CRM can increase revenue is through up-selling and cross-selling. Being able to access the customer's information more easily in a CRM system makes it easier to provide up-selling and cross-selling opportunities. Having the customer's information during a current sale will make it easier to suggest additional products or services. For example, knowing Sally's purchase history, the sale's person was able to offer a bundle deal the included the increased Internet speed and telephone services. Not only did the salesperson up-sell the Internet, but he also cross-sold phone services.

Referrals

A great way to use CRM is to increase referrals from existing customers. This not only increases revenue but gives you a competitive advantage. The referrals you receive may be customers of your competitors. The information in CRM, such as email and contact information, can be used to solicit referrals from your current customers.

Sally uses ABC Housecleaning to clean her house each week. She has been using the company for years and tells her friends and family about how much she loves this company. The company utilized their CRM system to send out emails to existing customers offering a discount for referrals. The email promotion was that if you referred a friend you would get $20 off your next service and your friend would get $20 off their service. This is a great use of CRM to get referrals, increase revenue, and increase the company's competitive advantage.

To unlock this lesson you must be a Study.com Member.
Create your account

Register for a free trial

Are you a student or a teacher?
I am a teacher
What is your educational goal?
 Back

Unlock Your Education

See for yourself why 10 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back

Earning College Credit

Did you know… We have over 79 college courses that prepare you to earn credit by exam that is accepted by over 2,000 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it free for 5 days!
Create An Account
Support