Customers are the biggest asset of any business; the success of a business is determined by how well they manage their relationships with their customers. In recent years, in order to stay ahead of the competition, Customer Relationship Management software, also known as CRM software is gaining popularity among businesses to enhance their relationships with customers and address the issues of dealing with customers in their day-to-day operations.
What does CRM software do? CRM software is a technology that serves to connect business to its customers, simplify processes, increase productivity, and eventually enhance profitability. Businesses can leverage on this platform to connect different functions of the organization from marketing, to sales, and after-sales customer services.
CRM software is especially important for newly set up companies in Singapore. Entrepreneurs that have just finished the process of company incorporation in Singapore lack outreach channels to their customers. They are also inexperienced in managing customers. Through the CRM software, the business can also learn more about their customers’ requirements and purchasing behaviors to develop deeper relationships.
This article will highlight the advantages and disadvantages of implementing CRM in your business.
Why is CRM Important?
For a recently set up business to grow, it has to consistently capture new customers and at the same time, retain existing customers. However, the investment businesses place to acquire new customers is usually high; hence it is very important for businesses to retain their existing customers by earning customers’ loyalty.
With the help of technologies, there are many platforms available for businesses to obtain new customers, for example through direct sales, e-commerce, franchises, referrals, etc. As the business customer base expands, there is a greater need to manage business relationships with customers across different platforms.
For a seasoned Singapore incorporate a company and those in the process of completing their company incorporation Singapore application, CRM is vital in ensuring customer satisfaction. With CRM software, a newly incorporated company in Singapore can draw useful insights into their customer’s behaviors across the platforms and customize their business processes accordingly to improve customer satisfaction.
In brief, with the right type of CRM, an entrepreneur who has just set up a company in Singapore will be able to:
- Discover customers’ purchasing behavior, before and after-sales feedback, preferences, etc.
- Segment customers into different groups based on preference to conduct marketing and promotional activities to increase sales
- Increase customer satisfaction through improved customer service, enhanced efficiency, and customized marketing
CRM helps businesses understand and respond to their customers better, which in turn improves the relationship between the business and the customers. For those who have completed the procedure of company incorporation in Singapore, this is a good software to invest in to understand and manage your customers better.
Advantages of CRM
As businesses understand more about their customer’s behavior, they can make use of this data to increase sales and identify profitable clients’ profiles. For example, based on historic trends, sales personnel can engage customers at a better timing for upcoming purchases and cross-sell products that complement or enhance their current purchase. Through the data of their previous purchase, the business can also identify each customer’s requirements and recommend the right products without needing the customer to express themselves over again whenever they make a new inquiry.
Marketing wise, entrepreneurs that have just set up a company in Singapore can also make use of the data to effectively target marketing contents to specific groups of customers who are suitable and highly likely to make a purchase based on their requirements and avoid spamming customers who are not interested in the specific product or marketing campaign.
With CRM, an entrepreneur that has just finished the process to incorporate a company in Singapore would be able to::
- Increase customer satisfaction hence improving customer retention rate. Satisfied customers will also ensure that the business reputation grows in the industry.
- Enhance value from existing customers through better service and efficient cross-selling, hence reducing the cost of acquiring sales.
- Improved profitability by highlighting profitable customers allocate the cost of sales accordingly’
Disadvantage and Impending Drawbacks of CRM
First of all, implementing CRM software can be a time-consuming and a high cost for businesses, especially for a recently set up company in Singapore. However, after all the hard work and money invested in CRM software, it may not produce the preferred results due to possible reasons:
- CRM only works when everyone within the organization is committed to improve customers’ relationships and take a customer-focused approach when going about their daily tasks. However, for some companies, this may be a major change in the way people work in the organization. There may be risks that the effort from CRM may go to waste if not everyone is committed and may even result in customer dissatisfaction and eventually a loss in revenue and reputation.
- Inaccuracies of information and poor communication across the process line can deter CRM from working its effect. Hence it is important that everyone relevant in the company knows what information is required and how to make use of the information for CRM.
- Poor decision-making can affect the efficiency of CRM. For example, as much as a CRM can gather useful information about the customers, it needs a good and suitable plan to target a unique group of customers. It is important that decision-makers can identify and implement the right plan for their customers.
As such, CRM is beneficial and worth the investment for new companies in Singapore if only they are used with a customer-focused mindset, proper training, and implementation. If you have not set up a company in Singapore yet, read on for a short guide on how to incorporate a company in Singapore.
Guide to Setting up a New Singapore Company
There are many types of business entities that the authorities in Singapore offer for entrepreneurs to start company incorporation in Singapore. Some of the commonly used entities are:
- a) Sole-Proprietorship
- b) Partnership
- c) Limited Liability Partnership
- d) Private Limited Company
Foreigners who wish to start the process to incorporate a company in Singapore will need to engage the assistance of a company incorporation Singapore service provider. A Singapore citizen, Singapore permanent resident, and/or foreigners holding an Entrepass are eligible to apply for the set up of a new entity.
For all entities listed above, the owner/partners/officers of the company have to be at least 18 years of age at the time of registration. Undischarged bankrupts are not allowed to manage or set up a company in Singapore unless they have obtained approval from the Court or the Official Assignee.
The application to set up a new entity is done through the Accounting and Corporate Regulatory Authority “ACRA”. Applicants will have to provide the following information:
- a) Company’s Name
- b) SSIC Code
- c) Director/ Owner/ Partner ‘s Particulars
- d) Share Capital and Shareholder’s Particulars (for Private Limited Company only)
- e) Corporate Secretary’s Particulars (for Private Limited Company only)
- f) Registered Business Address
Once this information and supporting documents are promptly submitted, the application to incorporate a company in Singapore will be processed. For cases that do not require special approval from relevant authorities, they can be completed within the hour from the incorporation and or registration request.