In 2018, customer relationship management (CRM) software became the leading and fastest growing software market, with a growth rate of 16%, according to research by Gartner. Worldwide, CRM software revenue reached $39.5 billion at the end of 2017, surpassing that of database management systems (DBMS). With such rapid growth, people have been given little time to get their heads around what CRM actually is. Many people use the word, sounding impressive in emails and board meetings, but frequently they confuse its meaning with more general management software. So, what exactly is CRM and should your wellbeing business use one of these highly complex systems?
What is it?
Simply put, CRM is a way to manage and improve your interactions with customers and potential customers. Sometimes it refers to a company’s theoretical strategy or process. In its most recent format, it is a software product, usually stored in the cloud, that records, reports and analyses every interaction between company and customer. It sounds very Big Brother, but it is intended to serve both the service provider and the consumer.
The Benefits of CRM
- Personalised marketing: CRM allows for a more personalised approach to marketing. Think of targeted ads that follow you around the internet; CRM refines this personalisation further. Customers or potential customers are only advertised to about products or events that are highly relevant to their interests.
- Automated sales: Salespeople cannot afford to waste time rooting through spreadsheets and notepads to remember their relationship with a customer. CRM puts this information directly onto their dashboard allowing for a much smoother and more effective pitch.
- Higher retention: It is proven that retention rates and member usage are directly correlated. For each additional visit by a member in any given month, the risk of that member cancelling in the subsequent month is reduced by 33%, according to research by IHRSA. With a fitness CRM system, you can monitor and reach out to inactive members who are most vulnerable to cancellation.
- Customers feel valued: A mother might call with a query about her daughter’s tennis group. With an efficient sports CRM system, you can quickly search her name and load every previous interaction. With the facts laid before you in your dashboard, you will be able to provide a more personalised customer support service. Member care is a journey; it evolves as your members change.
- Happy Birthday: Automatic birthday wishes can be sent to every client with the gift of a special offer. For many activity providers, kids’ birthday parties are a big chunk of their income. An effective CRM system could decipher appropriate clients and send a promotional email in advance of the child’s birthday.
Budget for change
CRM systems for sports typically contain vast amounts of sensitive personal data, such as customer contact information, date of birth etc. This information increases in value over time, as a customer’s profile builds up. In its very nature, CRM is prone to General Data Protection Regulation (GDPR) non-compliance. CRM budgets are expected to increase as companies follow GDPR procedures.