CRM: A Business Imperative for Companies during the Global Economic Downturn

 
CRM: A Business Imperative for
Companies during the Global
Economic Downturn






              
Executive Summary Navigating through turbulent times is never easy, but today's economic conditions are more challenging than most companie s have ever faced. The instinctive reaction is switch to defensive mode; cut all strategic projects and then wait until things improve. But retreating behind the bailey could actually prove to be more detrimental in the long term. These turbulent times present new opportunities for companies that invest wisely in information technologies. This whitepaper examines how Sage is working with small and medium sized businesses like yours today to help them protect and grow their revenues during the economic downturn through the use of Customer Relationship Management (CRM) software. CRM enables companies to: (1) deliver exceptional and personalized service consistently to their customers during these challenging times, (2) increase their customer revenue share through highly focused business development programes (3) extend the reach and effectiveness of new business programes and (4) achieve significant cost savings and on-going productivity improvements. Introduction The global economic downturn has been swift, sharp and widespread across all industries. And while the timeframe for "We are at an extraordinary recovery is debated on a daily basis, one certainty remains true: period of history. It is a time of companies today face the toughest economic conditions in crisis and unprecedented several generations. The next steps they take over the coming uncertainty, even fear; but it is months will determine their very survival. Winners and losers will also a time of opportunity for inevitably emerge, but perhaps separated by only the thinnest of change and profound margins. transformation."   Klaus Schwab, Chairman, World Economic Forum 2009The Challenge for Small and Mid-Sized Companies  The global downturn has brought about a dramatic increase in business failures over the last six months, and nowhere has this been more apparent than in the case of small and mid-sized businesses (SMBs). Unlike bigger companies, where more cash on the balance sheet provides some degree of insulation, SMBs have seen a rapid decline in cash flow as a result of slowing customer demand and evaporating lines of credit.
There has been a sudden rush to cut spending as companies use every means at their disposal to restrict or eliminate activities that will not improve sales or the bottom-line in the near term. While this has been understandable, cost reduction on its own will not steer a business safely through the economic downturn. Businesses also need to examine how they can safeguard revenues and profitability, and particularly within their own customer base. Otherwise, they are just delaying the inevitable: more painful cost reductions and the very real possibility of sliding into an irrevocable decline. What Can You Do? Cutting costs while maintaining growth is a formidable challenge at the best of times, but during a downturn, it can seem almost impossible. To meet these goals, SMBs will need to look for practical solutions that will help them to drive productivity and increase effectiveness across their operations. 2 
  CRM: A Business Imperative for Companies during the Gl obal Economic Downturn 
Increasingly, companies like yours are turning to business software and CRM applications in particular, to drive through th e kind of operational improvements needed to survive and accelerate out of the downturn. By optimising revenue-generating activities at a lower cost to your company, CRM is uniquely positioned to assist you during the most challenging market conditions. Why CRM? First and foremost, CRM helps you to protect revenues from your current customers by ensuring that you are delivering exceptional service and safeguarding their loyalty notwithstanding increasing cost pressures. Additionally, by providing deeper insight into your customers, CRM enables you to unearth latent revenue opportunities within your customer base for complementary products and services. It allows you to leverage these opportunities and proactively grow your revenue share through hi... [download for more]