CRM in the SME sector

Reasons and background for a promising implementation of CRM in medium-sized companies

Customer relationship management software (CRM software for short) has long since ceased to be the exclusive domain of the big players in the business. To answer the question "How useful is CRM in SMEs", it is worth first looking at the current challenges faced by SMEs in order to identify the greatest potential when introducing a CRM system.

Experte

Lars Bolender, Head of Sales & Marketing

Gedys Intraware GmbH

Challenges of the SME sector
What is the status of digitization in SMEs?
Advantages of CRM for SMEs
What you should look out for in a CRM project
Advice at eye level

Challengesof the SME sector

According to the digitization index of the Federal Ministry of Economics and Climate Protection (BMWK), this was a key finding of last year's survey:

"The economy continues to be affected by inflation, supply chain difficulties, the energy crisis and ongoing uncertainties. However, in the current crisis situation, greater digitalization is not an immediate tool for many companies to overcome the crisis or to cushion the negative effects in the short term - as was the case during the coronavirus pandemic, for example."

Nevertheless, the growing competition from large corporations and medium-sized competitors is increasing the pressure to digitalize. The difficulty of standing out from the competition remains. This is partly because the internet has made comparison options very easy, but also because customer requirements change significantly from generation to generation.

Customer expectations are tending towards more and more individualization, personalization and proactive support. Sales and service must be ready to respond at any time. As a result, mobile working and the corresponding technologies are becoming increasingly important, as they enable optimal customer care while on the move. The strength of medium-sized companies must lie in knowing and understanding their own customers and knowing what they need. After all, it is possible to stand out from the competition with good advice and perfect service.

What is the status of digitalization in SMEs?

According to the BMWK's digitalization index, the digitalization of the economy in Germany stagnated in 2022 and 2023. Medium-sized companies with 50 to 249 employees even recorded a slight decline in digitalization, with the index value falling from 124.0 to 122.3 points.

The BMWK also reports that the digitalization gap is most pronounced among SMEs in the area of artificial intelligence (AI)(compared to large companies). For this reason, the focus of support for SMEs should be primarily in this area. The network of SME Digital Centers sees great potential in the versatile application area of AI and the associated technologies, also to counteract the shortage of skilled workers.

The greatest digitization growth in 2023 was in the areas of processes and qualification. In addition to the digital maturity of internal processes, the "Processes" category also includes digital networking with other companies, while the "Qualification" category reflects the skills available in companies. The increase here is due to further training courses offered by companies for their own IT specialists and IT users.

According to the SME Digitalization Index 2021/2022 ( tech consult and Telekom), companies previously focused primarily on improving customer relationships, IT security and data protection as well as climate protection.

CRM in SMEs for more resilience in the company

69% of study participants in the SME Digitalization Index 2021/2022 stated that they wanted to improve communication with their customers via digital channels. The move towards CRM in SMEs and digitalized communication processes and business models also means an improvement in resilience with CRM: CRM software helps you to learn more about your customers' wishes, work more effectively, save time, adapt more quickly to new circumstances and thus be more resilient in the long term.

Support programs for CRM in SMEs

Programs to promote digital transformation offered up to six-figure funding amounts, but only 18% of these were used. This was often attributed to a lack of transparency, excessive bureaucratic hurdles and the need for external support in finding and applying for the right program. Around 60% of companies that took advantage of such funding required external support.

Advantages of CRM in SMEs

As mentioned above, today's employees are dealing with a growing number of customers who have very high expectations. In order to meet these expectations and fulfill customer wishes, it is worthwhile for SMEs to acquire aCRM.

Correspondence and activities with the customer are documented centrally in the CRM so that all relevant information is always at hand - even if a colleague is absent. Patterns can be identified from the collected information through targeted analyses and proactive measures for targeted customer care can be derived .

In addition, appropriately configured CRM software relieves your employees of work. Well-coordinated processes with accompanying automation and the integration of AI functions save time and stress. Examples of this include email integration in CRM,text creation with AI integration or intelligent processes when creating quotations. Templates and integrated workflows also ensure a uniform customer approach and consistent communication.

Functions such as computer telephony (CTI) or video conferencing tools (such as Teams, WebEx or Zoom) and a CRM app for mobile devices ensure that office and field staff are always well informed. This means that all customer information is immediately visible when a call comes in. When visiting a customer, the field sales team can easily access all relevant customer data via smartphone or tablet and can quickly create visit reports using voice input and store them immediately in the CRM.

You should pay attention to this during the CRM project

A CRM project is a comprehensive investment in the future. That's why the CRM project should be a success for SMEs right from the start. To achieve this, it is important not to be under the illusion that only a CRM system needs to be installed for success to come automatically.

Rather, the basis for success is a strategic approach: All phases, from identifying the relevant objectives to selecting the right system and training future users, must be carefully planned and run through. All stakeholders must be brought on board and their needs considered when selecting the software. All the individual requirements of a flexible, medium-sized company must be able to be mapped in the system.

Further information can be found here:

Advice at eye level

For medium-sized companies, it makes sense to rely on medium-sized providers when looking for suitable advice and technology. There is often far more scope for individual adaptations to specific company processes and requirements. This is because large software companies focus less on comprehensive individual configuration and much more on standardization.

“...after evaluating a good 40 competitors, the decision was made in favor of Gedys Intraware. It was not only the high degree of automation, the mobile usability and the 360° view of the software that counted. Above all, the decades of experience in medium-sized business operations, mutual sympathy and trust as well as the discussion at eye level spoke in favor of working with Gedys Intraware.” Read more in the customer reference Hurco!

Software providers from the SME sector can be the more suitable CRM partner thanks to close cooperation, better adaptability and advice at eye level.

We understand SMEs.

Find out what makes us a CRM partner, which customers we work for and what advantages our software solutions offer the midmarket. Find your contact person for a consultation at eye level.

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CRM in the SME sector

Reasons and background for a promising implementation of CRM in medium-sized companies

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