High inflation is causing problems for small and medium-sized businesses around the world. According to a study by the US National Federation of Independent Business (NFIB) , which represents the interests of small businesses, 37 percent of SME owners say inflationary pressure is the biggest problem they are currently facing. This is the highest figure since 1979.
Still, we know that SMEs are extremely resilient. In the last year, they have faced a pandemic, severe labor shortages, and the war in Ukraine, among other things. High inflation is another challenge that they can and will overcome - with the right tools like CRM (customer relationship management) software. Read on to learn how CRM software can help small and medium-sized businesses survive these times of high inflation and continue business as usual.
What impact does inflation have on SMEs?
Inflation is depressing profits due to increased costs throughout the supply chain. Higher food prices and inventory costs are leading to price increases. Raising your own prices can be a risky move for SMEs, both because smaller companies cannot always keep up with their larger competitors and because they find it difficult to enforce price increases for customers they have acquired through years or decades of hard work.
But there is also positive news: As a study by Kabbage found, small and medium-sized businesses were able to nearly double their revenue between July 2021 and July 2022. And while the majority of business owners are worried about inflation and a possible recession, 80 percent of them are confident that their business will survive this economic downturn.
How can a CRM system help SMEs?
The right CRM software can help small and medium-sized businesses fight inflation in several ways.
Important key figures at a glance
Businesses always need to keep an eye on their business, but when the economy is tough or inflation is high, it's more important than ever to make sure nothing slips france telegram mobile phone number list through the cracks. CRM software gives SMEs insight into pressing business needs, including detailed metrics on inventory costs, sales quotas, sales forecasts, marketing efficiency and more.
SMEs and other business people who use this data every month – or every week – to make important decisions gain a clear competitive advantage in weathering economic downturns.
maintaining productivity
During times of high inflation, employees often feel additional pressure as they may fear being fired or having their hours reduced. A CRM solution is a good way to promote transparency across the company.
Providing your team members with CRM software not only gives them peace of mind, but it also helps them streamline their workflows. Collaboration becomes easier and fewer tasks are performed twice, ultimately increasing productivity.
Personalized interactions
Personal service works wonders – and customers notice when this is not the case. According to McKinsey & Company, 71 percent of customers expect personalized interaction. 76 percent are annoyed when a company does not respond to them individually.
With an all-in-one email marketing and customer relationship management software, SMEs can personalize their offers and communications based on previous purchases or personal data such as first name or birthday. At the same time, the CRM enables them to follow up automatically when someone fills out a lead capture form or submits an inquiry. With this type of personalized communication, your company stays present with prospects and customers and you improve customer loyalty and retention through a continuous dialogue.