According to the research firm Gartner, the customer relationship management (CRM) market reached $20.4 billion in 2013, an increase of 13.7 percent over 2012.
Why are companies investing so much in CRM software?
Simply put, they are confident in the substantial return on investment (ROI) it provides.
Marketing automation, workflows, software tracking, and other customer relationship management tools are excellent additions to your marketing strategy. However, crunching data never replaces the advantage of real human interaction, so you can close the loop by integrating CRM software (just think of your CRM as the glue that bonds your marketing and sales teams).
Here's how HubSpot CRM integrations fill the void in your ROI reporting.
Unleash True Lead Nurturing
You can stick a plant in the ground, but without proper nurturing, it's unlikely to thrive.
Similarly, you can throw out numerous marketing strategies, but without true lead nurturing, you're missing much of the ROI you are due. According to TechnologyAdvice, 79 percent of marketing leads never convert. Lack of lead nurturing is the common cause of poor performance.
HubSpot's CRM software allows you to unleash the power of true lead nurturing by combining automated methods with the advantage of human input, providing closed-loop reporting that is critical to nurturing your leads.
Here are four ways it does this:
- It maintains centralized data storage: A CRM provides a centralized place for your sales reps to view all automated contact points. Reps can print a status report that offers a high-level summary of all their prospects. Think of it as an opportunity queue. Which prospects have reached out via the company's social networking site? Which ones opened their email? Automated marketing is an excellent way to personalize customer communication. HubSpot's CRM takes that data, stores it in one location, and provides ROI reporting to let you and your reps know what's working and whom to contact next.
- It has room for personal notes: Consider this scenario. A prospect was contacted via multi-channel automation a year ago. They spoke with a rep, but were not interested at the time. However, they provided valuable comments about their company's needs. Recently, the prospect triggered a workflow by visiting your website again. When the sales rep views the CRM record, he or she will see their automatic touchpoints, as well as the former rep’s personal notes about the prospect's needs. Those notes will be critical to a successful conversion strategy.
- It provides a coherent picture of performance: Every individual tracks their activities differently. A CRM provides clear reporting for managers by forcing individual sales reps to input their data consistently. Managers can easily piece together rep performance and track the effectiveness of their marketing strategies. Your CRM is the heart of sales and marketing, providing a dashboard for the overall health of both departments.
- It grows with you: HubSpot's CRM is scalable. As you grow, it grows, and along the way, it tells you which strategies have led to your growth.
Many of these benefits also contribute to why companies choose to integrate their CRMs with HubSpot.
Optimize Your Multi-Channel Strategy
A multi-channel strategy is critical to increasing the likelihood of successful customer engagement.
Marketing automation, social media monitoring, content management systems, and workflows are all part of any marketer's toolkit. However, blasting the same message across multiple vehicles is like shooting random arrows into the sky and hoping you might hit something.
An effective CRM unites your multi-channel strategy and provides critical closed-loop reporting that tells you which channels work best for which customers.
HubSpot outlines these four requirements for effective lead nurturing (your CRM is the key to all four requirements).
- Gain a deep understanding of your target buyer persona.
- Map out the buyer's journey.
- Be able to track a lead's life cycle stages.
- Match your content to your lead’s life cycle accordingly.
A CRM provides valuable insight outside of online marketing, as well.
Track trade show leads, cold calls, direct mail campaigns, or any other vehicles appropriate to your industry. Closed-loop reporting via an effective CRM not only helps increase conversion rates, but will also help you bring in the most profitable customers. You can also pull reports based on customers that are most likely to renew.
What customer demographic costs the company the least to acquire? For example, let's say you get 100 leads from a trade show and 25 of them convert, generating $100,000 in revenue. That same month, your website generates 25 leads, 10 of which become customers, which earns you an additional $150,000 in revenue. Which marketing effort had the greatest ROI? Your website and your CRM work together to provide that critical data.
Closed-Loop Reporting: The Perfect Mix of Data & Insight
To achieve effective ROI reporting, marketers must be able to track every lead, customer, and dollar back to the initiative that generated it. Closed-loop reporting enables marketers to understand their best and worst lead sources. HubSpot's CRM provides the communication platform to synchronize your sales, marketing, and customer support teams.
Here is an example of how using HubSpot's CRM workflow tools can be beneficial.
Workflows are generally thought of as working on the behavioral data of the prospect. If the prospect clicks on or submits something, a workflow is started. However, combine the power of workflows with the HubSpot CRM and unleash a powerful, targeted message. Set up your CRM so that sales reps can input their personal assessment and trigger a workflow through a simple dropdown property. The result will be much more targeted than basic data could be, and there is a greater likelihood that the sale will close.
Use closed-loop reporting to get a comprehensive picture of automated marketing and sales-rep-generated marketing, then compare the success of each, and adapt your future strategies around the results.