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Top 10 Myths About CRM

CRM is a combination of technologies, strategies and practices that businesses can use to both analyze information and manage customer interactions throughout the lifecycle. CRM can be used to collect customer data across multiple channels, identify sales problems, and make appropriate decisions.

A newcomer to the business who is just embarking on the path of automation encounters various misconceptions about CRM. Here are the most common ones.

CRM Is Only Suitable for Large Businesses

Myth

Since CRM requires a large budget to implement, it’s preferred mainly by large companies.

Truth

Any customer-focused business can clearly benefit from using CRM. It’s suitable not only for a huge betting company, like 20Bet, but also for a local store, which needs personalization. If a company’s goal is to improve business processes, strengthen sales at all stages, and establish effective communication with customers, CRM can help.

CRM Costs a Lot

Myth

The CRM implementation means software installation, constant costs for licensing, equipment and staff training.

Truth

Out-of-the-box solutions now have a smaller share of the market. Two key trends dominated the market: the transition to cloud services and in-house development.

Among cloud CRMs, there are options that are affordable for any business. There is no need to purchase expensive equipment and allocate a budget for infrastructure deployment.

Entering Information Into CRM Is Time-consuming

Myth

Entering new customer information into the database is time-consuming, which could be spent on communicating with customers and making sales.

Truth

With a CRM, you can update and access databases quickly and easily. Combining all the information in one place will save time when dealing with customer issues.

CRM have automation capabilities: adding and updating customer information, sending emails, generating sales reports, etc. The system provides the right information at the right time, helping sales managers interact more effectively with customers.

CRM Is too complex

Myth

It takes too long to train employees before they get used to working with CRM. Often, the company’s IT department is opposed to solving technical problems.

Truth

Modern CRM platforms are designed so that they can be quickly learned and easily integrated with business software. Many system vendors offer additional support for companies that don’t have their IT departments.

CRM Is Only Suitable for Sales Departments

Myth

The sales department is the only area of the business that can benefit from CRM. Therefore, you should think carefully before spending your budget to buy such services.

Truth

Customer information and reports affect the quality of customer interactions and strategic decision making. These decisions are made by marketing teams, tech support teams, and management as a whole.

All areas can benefit from this technology, as it can generally improve many key performance indicators. The notion that CRM is only useful for improving the efficiency of the sales department is mistaken.

Small Companies Don’t Need CRM

Myth

CRM isn’t suitable for small businesses. Part of this misconception is influenced by aggressive advertising of complex and expensive CRM tools, while inexpensive products remain out of focus.

Truth

You don’t have to wait until the company grows to switch to CRM. On the contrary, a CRM system will help grow a small business because of its capabilities: automating routine processes, putting tasks in order, and controlling employees’ work.

CRM Is Unreliable and Can Be a Source of Data Leakage

Myth

The issue of security is a serious problem for businesses, and it’s certainly one of the important factors that keeps people from using CRM. Customer databases are dangerous to keep in services because the risk of data theft is high.

Truth

Most CRM vendors are aware of the importance of keeping customer data secure, so they pay special attention to this issue.

CRM provides a secure “environment” for customer data, and there are strict controls on user access to information.

CRM Doesn’t Provide a Return on Investment

Myth

CRM doesn’t provide any tangible return on investment and clearly has no impact on profits.

Truth

CRM structures the sales funnel and helps the sales team close more deals. The system has a reporting function that helps determine how successful the chosen sales approach is. The company has a tool to make data-driven decisions. And that, in turn, ensures a return on investment.

Non-industry CRM Solutions Are Too Universal

Myth

Most CRMs aren’t suitable for specific businesses.

Truth

Whether a CRM is designed for a specific industry, such as banking, retail, or it’s a complete solution, it will be unique. An end-to-end solution can have customization capabilities.

CRM Automatically Increases Sales

Myth

CRM guarantees an automatic increase in sales.

Truth 

This belief can create false expectations for businesses to purchase a CRM. It would be more correct to say that CRM is part of the strategy and that its main function is to increase the speed of problem solving, workflow optimization. This means that even after acquiring a CRM, the business will still need a solid plan and experienced professionals to improve customer interactions.

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