Yes, CRM is a very useful tool for keeping the customer happy. But it is actually an activity-tracker. It is a means of tracking, analysing, and managing what people whether they are customers, suppliers, or employees say and do in relation to your business. Which means you can be pro-active in meeting market demands. And you can be very specific as to your objectives.
 
For an SME those two things being proactive and highly targeted mean the difference between profitability and bobbing along in the wake of the rest of the 732 000 close corporations that have been registered in this country during the past six years and the thousands more that are likely to be started in the run up to the 2010 Soccer World Cup.
 
The only competitive edge you can achieve in such a crowded business environment - where costs and product offerings are unnervingly similar - is to manage your customers better and to provide service that is superior to that of your competitors. In other words, SMEs have to learn to set trends.
 
The only way you can do that is to manage all contact that your business has with its customers and suppliers so that you can spot gaps and either close or exploit them to your own advantage. And, by sharing customer and supplier information throughout a small organisation, you empower everyone you employ to help you grab opportunities and counter threats. Too often a small business is reliant on only the owner or one or two senior managers to identify and act on risks and opportunities. In todays environment that is just too little control and too little insight to be useful for long-term sustainability.
 
So, CRM in an SME context does not just keep the customer happy. It actually drives profitability.
 
There is a but, however. To work properly, CRM needs company-wide acceptance and employee 'buy-in. Unless staff see the benefits of a CRM implementation, a 360-degree view of the customers and the business just is not possible. Each department impacted by an CRM solution must be shown the benefits based on that departments specific objectives and goals.
 
Sales needs to be aware that by focusing on the right opportunities and targeting specific customer groups it gains selling opportunities, and therefore the chance of increased revenue and commissions.
 
Finance needs to know that it can reduce costs and minimise outstanding accounts by using a documented relationship process.
 
Marketing needs to be aware that CRM can help it to target specific customer groups and segments and that correct customer profiles means smarter marketing.
 
The business overall needs to know that understanding a customers needs and preferences helps to reduce the cost of service and marketing while increasing revenues. It also lowers the cost of internal procedures because the 'right thing is done once, and at the right time.
 
Another enormous benefit of CRM to SMEs is that it provides users with a greater sense of control and organisation. They do not have important information scattered everywhere throughout the company - inside peoples heads, scribbled on pieces of paper, or in various e-mails. Instead, it is all in one central, accessible repository. The days of running a small business on yellow Stick-Its are officially over.