Using CRM to Increase Revenue & Competitive Advantage

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  • 0:00 Customer Relationship…
  • 0:39 Increased Sales
  • 1:56 Referrals
  • 2:47 Longer Lasting Relationships
  • 3:29 Lesson Summary
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Lesson Transcript
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 one-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 salesperson was able to offer a bundle deal that included the increased Internet speed and telephone services. Not only did the salesperson up-sell the Internet, but he also cross-sold phone services.


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.

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