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CRM

Why You Need CRM Software for Lead Generation During a Recession

CRM systems are practical tools for businesses to utilise customer information in order to increase lead generation and secure quick sales.

The National Institute of Economic and Social Research released a report recently stating that “with consumer price inflation close to double figures, the threat of stagflation has returned for the first time since the 1970s”. This comes as the UK has been battling increasing inflation rises to minimise debt. Unfortunately, many experts believe this is not working as we recently saw the interest rates on mortgages also rise in accordance with the BoE base rate increase on the 4th of August.

The UK economy is likely to enter a recession in the third quarter of this year due to these increases in inflation rates, and it is forecasted to continue until 2023. This will have a negative impact on companies across the nation, especially startups and SMEs who may not be financially stable, have the funding available, or have the staff to weather the storm.

In the digital age, it is increasingly important for companies to prove their adaptability to economic crises, such as a recession. The ability to change strategy, structure, and future plans in order to accommodate market difficulties may prove to be essential for small-scale businesses to stay afloat.

There are several things that small companies need in order to maximise their growth in a time of uncertainty, such as raising brand awareness and attracting potential customers. The number one tool that can alleviate a lot of stress and employee burnout, while simultaneously collecting customer insight and allowing a clear look into how to narrow your marketing to where it’s needed most is a CRM system.

CRM systems can help your business weather the recession and even improve your sales so that you are able to not only survive but thrive during an economic crisis. Here’s how:

Real-Time Data on Customer Habits to Enhance Marketing Focus

Customer insights is the number one thing needed for any company to be able to make sales. But first, you need to know exactly who you’re marketing to. The market is constantly changing and so are consumer spending and buying trends. Knowing your customer behaviours is a huge advantage to be able to begin formulating a marketing strategy.

As we are in a recession, it is unlikely that people will frivolously spend on something they have no use for, so targeting your approach and strategy to those who are in need of your product or service is key to understanding the best way to move forward.

Microsoft reported that companies that leverage their customer behaviour to generate insights outperform their competition by 85% in sales growth which shows the power of customer insights in regards to securing sales.

Brand Awareness and Targeting

Brand awareness has the ability to broaden your audience and widen your consumer base rapidly. CRM software is able to show you exactly who is buying from you and on what platform so that you can target ad sales.

For example, your data may show you that your customers are 80% male between the ages of 20-30 and the majority visit your website to buy online rather than in-store. This information will allow you to tailor deals, vouchers and advertisements to your website or link to your website to increase traffic and sales for men within that age range who prefer to buy online.

CRM systems are practical tools for businesses to utilise customer information in order to increase lead generation and secure quick sales. They have the ability to collate large amounts of important data to ensure your marketing and sales team are working together to ensure the longevity of your customer base and success.

If you are unsure of whether your company needs a CRM system, or if you are struggling with understanding what the recession means for your business, contact Subsector today and we’ll talk you through your options.

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