CRM solves the productivity puzzle

The productivity crisis
According to the latest Eurostat Labour Productivity Index, Europe & South Africa are not only faced with a struggling economy but productivity levels are also at an all-time low and have dropped every year since the recession began in 2008.

These worrying statistics become even more concerning when compared to the previous recessions of 1973, 1980 and 1990, where productivity rose after a few quarters fuelling recovery, so the productivity crisis is unprecedented in recent history and, it would appear, a bafflement to analysts and government alike.

So what is causing this productivity puzzle?
Many Think Tanks and government funded agencies are investigating, but it is proving difficult to find the one key issue; instead, it would appear to be a combination of the following:

Holding on to labour – companies are holding on to workers in order to maintain their organisational skill level
Companies seeking new routes to growth – new markets both domestic and abroad, which often require an increase manpower
Recruitment – research by Regus in 2011 showed an increase in recruitment of Sales, Customer Service and Marketing, as companies hope these departments will drive revenues.

How can we solve the puzzle?
If labour hording, recruiting customer-facing staff and seeking new markets are not going to solve the puzzle, what can companies do? Analysts are encouraging companies to focus on improving the direct management of customer-facing employees’ time to boost individual productivity and the introduction of CRM systems is a way for companies to achieve this strategy.

Is CRM the solution?
CRM solutions are proven to improve productivity by bringing together all the information on customers and prospects held by a company. Such centralisation of data makes it easy for companies to keep accurate and up-to-date information, weed out inefficiencies in finding and utilising information, eliminate duplication of work, reduce the time spent on administrative tasks and most importantly, provide employees immediate access to customer data while executing their jobs. A 2012 Nucleus surveyed 223 CRM decision makers and found an average productivity gain of 14.6%.

How CRM makes people more productive

Sales
Sales benefit from pipeline management, contact organisation, order management, lead tracking, report generating and sales forecasting can all be streamlined by the automation a CRM system provides.

Customer Service
A CRM system that makes it easy for service representatives to view all the information relating to a particular customer enables them to optimise customer satisfaction and boost loyalty.

Marketing
Marketing can identify existing customers likely to buy a new product and when, based on their purchase history – then send automated emails, with messages triggered by purchases, seasonal offers, even renewal notices to generate new business opportunities.

Senior Management
For senior managers, CRM offers the ability to view customised dashboards that use customer data and other business information to provide real time report, supporting strategic development and the identification of new business opportunities.