Results from a variety of research studies in recent years repeatedly show that a customer relationship management (CRM) strategy can have a significant positive effect on sales, marketing, customer service, and more.
For example, Nucleus Research discovered that the average return on a company’s CRM investment is $8.71 for each dollar spent, and research from Trackvia found that companies using a CRM realize a 41% increase in revenue.
Bottom-line, it’s extremely difficult to stay competitive in any industry today without a customer relationship management (CRM) system in place, and the data proves it. Let’s take a closer look at the top 10 ways cannabis businesses and cannabis-related businesses can benefit from CRM.
1. Get More Highly-Qualified Leads for Your Sales Team
A CRM puts a wealth of data about your customers at your fingertips and allows you to use that data to segment people into target audience segments based on demographics, behaviors, and psychographics. You can use that information to identify your best customer profiles and more effectively target matching leads through your marketing initiatives.
According to Salesforce, 79% of marketing leads are never converted to sales without a CRM. However, with a CRM, marketers can bring in more highly-qualified leads and push them through the marketing funnel more successfully.
For example, when you use the email marketing and CRM tools built into the Cannabiz Media License Database, it’s extremely easy to identify leads, categorize them, and develop detailed targeting criteria to boost your ROI.
2. Close More Sales with New Customers
Research from Cloudswave found that using a CRM software can boost sales conversion rates by as much as 300%. That’s because a CRM helps people sell smarter and faster.
Your sales team can manage deals and track the entire sales pipeline at all stages without missing important tasks and milestones when they have access to the right CRM software. They can also gain valuable insights so they can invest in more of what’s working and improve what’s not.
Research shows using a CRM software, like the Cannabiz Media License Database, can boost sales conversion rates by as much as 300%.
3. Increase Customer Retention, Loyalty and Repeat Purchases
A CRM makes it easy for marketers to keep people engaged with your brand and nurture them through the marketing funnel from cold leads to buying customers.
Leveraging CRM and email marketing communications with prospects and customers also gives your cannabis or cannabis-related business an opportunity to create digital brand experiences, which are vital to a brand’s success in the marketplace today.
Furthermore, your marketing team can use the data in your CRM to explore the problems and challenges your customers face and engage with them using relevant content that matters to them. This is a crucial part of building a strong relationship between customers and your brand that leads to sales, loyalty, and word-of-mouth marketing.
4. Generate Higher Per-Purchase Values
It’s always easier to sell to an existing customer than it is to sell to a brand new customer. CRM makes it even easier by giving you tools to better understand your customers and the ability to develop very specific targeting criteria so the right people always get the personalized messages and offers they’re most likely to respond to.
The more you know about your customers, the easier it is to convince them to buy more. For example, if your business wants to target cannabis license holders in a specific state that use a certain point-of-sale software system, you can do it using the CRM and email marketing tools in the Cannabiz Media License Database.
5. Increase Revenue with Cross-Sell and Upsell Opportunities
CRM software provides you with a variety of communications opportunities that make it possible for you to increase customer lifetime value and generate new business from existing customers through targeted upsell and cross-sell offers.
For example, you can set up a variety of cross-sell and upsell email marketing campaigns triggered by actions, such as when a customer purchases a specific product, or triggered by timing, such as when it’s a customer’s birthday. Similarly, these actions could signal it’s time for a salesperson to reach out on a one-to-one basis to start a conversation via phone or email.
6. Boost Employee Productivity
Research from Salesforce shows that businesses using CRM software see sales increase by 29% while sales productivity jumps by 34% and sales forecast accuracy climbs by 42%. The reason is simple. When you have the right technology and break down business silos, you can automate processes and free up your employees’ time so they can focus on other tasks to boost your ROI.
In addition, a CRM gives your team the tools they need to build repeatable processes. For example, if you have a long sales cycle and a sales team, they can build a sales pipeline in their CRM software complete with notifications, reminders, histories, and more. At any moment, a salesperson or leader can log into the CRM and instantly see where a deal is in the pipeline and what needs to be done next to move the deal closer to closing.
This saves a significant amount of time for everyone involved, and all of the features you need to do it are included in the Cannabiz Media License Database CRM system.
7. Improve Sales and Marketing ROI
With marketing and sales processes and automated actions and communications set up in your CRM software, sales and marketing ROI should go up. A CRM gives your team access to data that helps them develop better programs, attract more qualified leads, and close sales faster.
For example, with a CRM, the sales team can analyze data to determine when the best time is to communicate with your audience to get the best response. This saves time and reduces the cost of each sale while increasing your ROI.
If your audience includes cannabis license holders and you use the Cannabiz Media License Database, the software figures out the best time to send email messages to your specific audience and automatically provides it to you when you set up each email campaign. Want to reach out to a contact via phone, email, or social media? All of that information is a single click away from each contact’s record in the License Database!
8. Create Personalized Communications
Thanks to the segmentation capabilities inherent in a CRM tool, your cannabis business can send targeted messages personalized to each recipient. This goes beyond simply adding the recipient’s name in an email message subject line. It means tailoring offers based on your audience’s behaviors or demographics.
Since CRM gives you access to so much data about your customers, you can completely customize your communications with them and their experiences with your brand, which leads not only to more purchases but also to improved brand sentiment and vocal brand advocacy.
9. Improve Customer Service and Customer Happiness
CRM software gives everyone on your team instant access to customer histories. As a result, everyone can provide the best customer service possible and solve customer problems faster than ever.
Consistent interactions through every touchpoint are essential to keeping customers happy today. A CRM makes consistency possible because everyone has instant access to the information they need to deliver the personalized service that customers expect.
10. Make Better Decisions Using Reliable Data
From a business leadership perspective, CRM can help you measure many of your investment results so you can grow your business while maximizing your team’s performance. CRM tools provide a wide variety of reports that give you deep insights into what’s working and what’s not so you can hold your teams accountable and optimize your investments at all times.
Key Takeaways about How a CRM Can Boost Your Cannabis or Cannabis-Related Business
When you understand your customers – including their histories, behaviors, needs, and problems – your cannabis business will be more successful. CRM gives you a single source to access to the data and tools that improve sales, marketing, customer service, employee productivity, customer happiness, and more.
The Cannabiz Media License Database includes all of the CRM, email marketing, data, and business intelligence tools that you need to connect with cannabis and hemp license holders in the United States, Canada, and other international markets. Schedule a demo and see how it can improve your sales, marketing, customer service, and more.
Originally published 4/17/20. Updated 8/13/21.