Whether it is an overall economic slowdown, a local slump, or the down phase of an industry cycle, periods of soft demand pose great challenges to large and small businesses alike. A CRM strategy can help during those periods by boosting organizational productivity.

Productivity is a front-burner issue during slow business periods. As demand slides, a company faces a drop in productivity unless it cuts capacity. Those cuts, however, may weaken the organization for the long run. Alternatively, a company can go on offense, and look to boost productivity by improving internal processes and taking advantage of weakened competitors.

CRM applications can be a tool for the higher-productivity approach. For large companies, this can mean picking up precious market share during a downturn. For a small business, the right CRM strategy can be the key to surviving to see the next upturn.

CRM Applications for Sales Force Productivity
When business conditions are bad, there is a natural tendency for sales representatives to pull in their horns and become less aggressive. This can be a mistake. While there may be less business to be had in the marketplace, people are still looking for viable value propositions. Also, they may be getting less service from their current provider and are thus open to considering a change.

CRM applications can help improve sales force productivity in a couple of ways. First of all, through prompts, scripts, and other techniques, a CRM system can be used to standardize methods that have proven successful for the top quartile of the sales force. This can help train newcomers and improve the approach of the bottom quartile.

Second, CRM software provides ample opportunity for managers to monitor the activity of each sales representative. By making sure everyone stays active, and diagnosing where some representatives are lagging, a manager can make sure the sales force stays on offense.

Using CRM Software to Prompt Personal Service
CRM software can be programmed to prompt service reminders. This can lead to the service staff making timely phone calls that reinforce a relationship. Also, by including key details about contacts and their businesses in the CRM system, staff can reference relevant individual information that makes customers feel they are getting personalized attention.

CRM Applications Can Improve Customer Penetration
Besides helping with customer retention, CRM applications can also help increase customer penetration. Key details about a customers buying habits can lead to additional sales, and every service call can be turned into a cross-selling opportunity. Bottom line: when new customers are hard to come by, getting the most out of existing relationships is more important than ever.

Using CRM Systems for Competitor Targeting
CRM systems can be used to record the current providers of potential customers, so customers of specific competitors can be targeted when those firms show signs of weakness. Many companies fall down during a business slump, and that can make it the best time to strike.

Throughout most of this decade, many large businesses have developed their CRM applications during a time of economic expansion. Now they may get a chance to really put those applications to the test in a downturn. Meanwhile, with CRM software having gotten more affordable at the start-up level, even a small business can adopt a CRM strategy for tough times.

Sources
Forbes
Harvard Business Review