CRM and Business Management Solutions for Retailers

The UK retail sector is an extremely fast moving, often fashion led industry. This coupled with economic, cultural and technological changes has made the retail environment extremely competitive. All retailers are aiming to increase customer loyalty, enhance profits and ultimately gain competitive advantage over rivals, but this can be difficult.

Recent changes in the economy have had a significant impact on retailers. There have been a number of household names which have closed and others which have been taken over. This is because more and more of us are reducing none essential spending, in an attempt to hold onto our money for longer. In addition, there has been a rise in operating costs as rates and the raw materials have increased. The impact of reduced sales, coupled with the increased cost of operating can have catastrophic implications for retailers. However, CRM for the retail sector can help.

In retail as with most other industry sectors, the key to success it communication. However this can be difficult, especially when many organisations do not have a fixed process for storing information. Often there will be varying places to store information, depending on which department you work in. For example some departments may use paper files, others may use spreadsheets and there will be some who store information in their head. However, keeping data in an ad hock manor can have negative implications on the organisation. It will cause gaps in knowledge which can result in a poor level of customer service and this will ultimately reduce the level of customer loyalty.

It is important to remember that it costs more to attract new customers than it does to retain existing customers. And, in tough economic times, loyal customers could become a life line.

CRM (Customer Relationship Management) is all about building relationships with existing customers at the same time as attracting new clients. Properly implemented a CRM solution will provide one central place to store all information relating to customers and reduced duplication of effort, ultimately improving the productivity of an organisation. This means that irrespective of what department an individual works in, they will have access to the same information. The benefits of implementing a CRM solution in the retail sector include:

  • One centralised source of information
  • Improved communication
  • Streamlined internal processes
  • Improved level of customer service
  • Increased competitive advantage

CRM solutions also typically have a marketing functionality. The marketing section provides a campaign management tool which has the ability to run reports on any number of search criteria. This enables retailers to identify the marketing campaigns and promotions which have been successful and those which have not been so successful. This helps retailers to allocate their budget effectively and only run the campaigns which are likely to deliver the highest returns.

In addition, CRM software enables retailers to manage their loyalty schemes more effectively. It provides one centralised location to store all information about customers, including their likes and dislikes. It will also enable the retailer to identify trends in the market as well as customer spending patterns. Ultimately, CRM will facilitate the delivery of more targeted campaigns and promotions.

Implementing a CRM solution doesn't have to cost a fortune or cause major disruption to your organisation. There are hosting alternatives to suit every budget, including:

  • On-Premise
  • Hosted

The On-Premise solutions are typically used by larger organisations which require a high degree of customisation. On Premise solutions provide a number of benefits including:

  • Completely secure
  • No monthly payments
  • Total ownership of the solution
  • Unlimited customisation potential

However, Hosted solutions provide a cheap and convenient way to implement CRM. Typically hosted solutions are used by smaller organisations. However, they can also be used by larger organisations who want to get started with CRM. Benefits of implementing a hosted CRM solution include:

  • Quick to set up
  • Low set up costs
  • Unlikely to require any additional hardware
  • You can use the software as soon as you have bought the license

Concentrix has helped several retailers to improve their operations through implementing a CRM system. We supply the best in breed CRM solutions including Microsoft Dynamics CRM, Sage CRM and FrontRange's GoldMine and take a product agnostic approach to supplying them.

For more information about CRM or for help and advice on selecting the solution which is right for your organisation, please contact Concentrix on 01509 410500 or email info@concentrix.co.uk.