Digital transformation is a key driver of growth in the furniture industry. Though it’s been slow to adopt digital technologies, the furniture industry is projected to make up for the lost time. The estimated investment in business software over the next year is $2.5M, almost double of where it it stands right now. CRM, an acronym for customer relationship management, is almost always the first digital tool that companies invest in and rightfully so. Over the past decade, it has helped corporations transform their businesses by offering a more personal experience for their customers. CRM can reduce costs by automating repetitive tasks and enabling faster responses. By using a CRM to track customer data—order history, purchase frequency and sentiment—companies can gain insights into the needs and preferences of their customers. The system also allows customers quick access to information about the history of their accounts and previous interactions with customer and sales representatives. The math is simple: happier customers means higher retention rates and increased sales. In an industry that requires companies to produce one winning product after another, a CRM can make everyone’s job easier, not to mention it can significantly reduce the landfill waste.
CRM systems are typically built around four major components: business rules (to automate your company’s processes), knowledge management (sharing information between different teams), marketing automation (automating communications through predictive analytics), and customer relationship management tools.
Automation
The furniture industry is hyperfragmented; almost 90% of furniture wholesalers in the US hire less than 20 FTEs, more than 50% hire less than 5. In other words, the industry is running on employees that are spread thin and could use some help. Automating time consuming repetitive tasks that are prone to human error would offer much needed relief to your employees and recharge their relationship with customers. With more time on their hands, they can direct their attention to issues that are more complex and rewarding to solve. So how can a CRM help you automate? A CRM can help you organize your leads and automate the lead qualification process. Automating this process means you will have the ability to allocate leads to the appropriate sales and customer sales reps based on preset rules (e.g. territory). You can also set up automated reminders for follow-ups with customers, so that there are no missed opportunities for sales. As an example, one prospect may have been identified as a “sales-ready lead” after receiving three automated emails in a row. By changing this prospect’s status in your CRM, the showroom, sales, and customer service employees can effectively approach the prospect during their first visit to a showroom.
Engaged employees
A good CRM can help a company organize all their customer data in one place, regardless of the channel they are contacted on. This way, you can have a more detailed understanding of your customer’s needs and preferences which will lead to better customer service. It will also facilitate the implementation of a knowledge management system in your company. Knowledge management is the process of identifying, capturing, organizing and sharing knowledge within an organization. Knowledge management also enables employees to access information more quickly and efficiently in order to make more effective decisions. It will help you to get rid of the knowledge silos that exist in your company and instead allow for an open culture where all employees are encouraged to share their knowledge. It can reduce the time it takes for your employees to make a decision. It can help you to prioritize what’s important by tracking how much time is being spent on each task. Using a Kanban board, you can track the workflow of your agents and the tasks involved. You can also see how your team is performing in the area of work that they are responsible for. Long-term, you’ll slowly align your resources with the company’s strategic goals.
Predictive Analytics
The furniture industry is a highly competitive market and in order to stay ahead of their competition, wholesalers need to be able to keep up with the changing times. Enter analytics tools. What is an analytics tool? An analytics tool is a program that can measure the progress of certain goals such as increasing sales or reducing customer churn. You can use this information to make better decisions about your inventory and marketing campaigns. By understanding what your customer demographics are most likely to purchase in the future, you can adjust your product offerings and target your ads more accurately. CRMs allow many departments to work together more effectively so that a single salesperson can focus on a targeted, personalized approach to their customers. As a result, CRMs have helped companies achieve new levels of efficiency while providing better customer service.
There are many CRM platforms available in the market, but not all of them offer a smooth experience to the customers. Things to watch out for are: whether or not the platform has enough features or if it can be used for any channel of communication with the customers (than, say being restricted to email). You should also keep in mind that the best ones are those that focus on long-term customer relationships rather than short-term sales goals. It’s an indispensable tool for any company that wants to grow and stay competitive in today’s market. It’s the uber tool to turn you into a proactive leader rather than reactive one.
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