Three major benefits of a CRM
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Want to learn how CRM software improves customer engagement and retention? Just keep reading.
CRM software enables personalized customer engagement: By centralizing data on preferences, behaviors, and purchase history, a CRM helps sales and marketing teams craft personalized messaging and outreach strategies that drive deeper customer relationships and long-term loyalty.
It proactively identifies churn risks and retention opportunities: CRMs can surface behavioral patterns or inactivity signals that flag at-risk customers, allowing teams to intervene early with tailored re-engagement campaigns or customer support.
An omnichannel CRM strategy improves the customer experience: Integrating all customer touchpoints into a single CRM system ensures consistent communication across channels—email, phone, chat, and social—resulting in a more seamless, responsive customer journey.
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Customer relationship management (CRM) software is an excellent tool for any business looking to drive more sales and revenue. CRMs gather, store, organize, and analyze data about your customer base, allowing you to learn more about your audience and improve your marketing.
But what about retaining existing customers? How can a CRM help you keep customers around after the first purchase, and why should you get one for your company? That’s exactly the question we’re going to answer, so just keep reading to learn about how CRM software improves customer engagement and retention.
There are quite a few CRM customer engagement benefits, which is why so many companies use them. But you don’t want to pay for one until you know for yourself what those benefits are—which is why we’re here. Keep reading for an overview of three major benefits of a CRM.
You don’t stop communicating with a customer when they make their first purchase–on the contrary, you want to maintain communication to keep them around. And personalizing that communication–which a CRM can help you do–is a great way to keep up customer engagement.
When you use a CRM, you have access to tons of data about your customers. On top of basic demographic data, you get to see data on how your customers have previously interacted with you and what they want from your company.
By examining data about your customers’ preferences and interests, you can get a much better picture of what it is they’re looking for in your business. You can then use that information to personalize your communication with them, which will make it easier to keep them engaged.
Another CRM customer engagement advantage is that you can use your customer data to identify causes of customer churn. If you’re experiencing a high customer churn rate, you likely have some issues throughout your customer retention process that are driving people away.
But it’s not like you have to stay in the dark about what those issues are. You can simply take a look at your customer data. Examine customer trends, figure out when it is that most customers tend to leave, and then examine that part of the sales process to find out what’s driving them away (and what you can do to make them stay around longer).
When you find the issues in your customer retention methods, you can work to resolve them and prevent them from driving away any other clients. That will allow you to retain far more customers and reduce your customer churn rate, driving up your revenue in the long run.
You can also use your CRM to keep a close eye on individual clients. You can look for trends in their behavior and purchases that might indicate if they’re planning to cancel anytime soon. If you observe that a client seems close to canceling, you can work to resolve whatever’s causing that, keeping them around as a client.
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The third major CRM customer engagement advantage on our list is that CRMs can help you enhance your multichannel customer communication efforts. What does that mean? Essentially, you’ll likely communicate with customers via multiple channels, and you want to be able to manage all of those channels equally well.
A CRM can help you see which channels are proving most effective at retaining clients, which ones need improvement, and how you can better unify your various channels to allow for smooth transitions between them.
If customers can easily move between different channels and still receive the same core messaging from your company, it will help keep them more engaged. That, in turn, will lead more of them to maintain partnerships with your company.
The fourth and final way CRMs improve customer engagement is that they allow for a direct line of contact with your clients, which you can optimize based on what you learn from your customer data.
For example, you can use the email feature of your CRM to update your existing clients on new products, services, features, and more. You can also use your dashboard, tasks, and calendar integration to engage with your customers.
For example–do you notice that you’re losing customers that you don’t regularly keep in contact with? Just shoot out an automated, personalized email to customers that you haven’t spoken to in a certain period of time.
Or, do you have a customer who hasn’t made a new purchase in several months? You can contact them with some product recommendations based on what they’ve bought in the past.
All the CRM customer engagement benefits on this list are excellent, but they only help you if you have a CRM to begin with. Thankfully, the process of finding one doesn’t need to be hard. Nutshell is easily the best CRM software for your company.
Designed specifically for businesses like yours, Nutshell comes with a variety of features, from customized data reports to sales automation. Best of all, it comes with a top-of-the-line customer service team that can help you through any questions or issues you may have. We also make it easy to import all of your data with our white glove data imports. Of course, it makes sense that you wouldn’t want to jump right into a paid subscription without knowing how helpful Nutshell truly is for your company. That’s why we offer a 14-day free trial of our CRM. Check it out today to see what Nutshell can do for you!
Most small businesses can implement a user-friendly CRM like Nutshell in 2-4 weeks. This includes planning, data migration, team training, and going live. Complex enterprise CRMs can take 3-6 months. The key is choosing a system designed for quick setup with guided onboarding support.
Track your customer retention rate using this formula: [(Customers at period end – New customers) / Customers at start] × 100. Also monitor churn rate, customer lifetime value (CLV), and repeat purchase rate. Most CRMs provide built-in reporting dashboards to track these metrics automatically.
Start with executive buy-in and involve your team in the selection process. Provide hands-on training that shows quick wins, not just features. Make the CRM easy to use with mobile access and email integration. Celebrate early adopters and track usage metrics to identify who needs extra support.
Customer engagement measures how actively customers interact with your brand—like email opens, website visits, and product usage. Customer retention measures how many customers you keep over time. Engagement drives retention: highly engaged customers are more likely to stay loyal and continue purchasing from you.
Yes. A CRM can identify at-risk customers through declining engagement patterns, then trigger automated win-back campaigns. Personalized re-engagement emails based on customer history can recover 10-30% of churned customers. The key is acting quickly when you spot warning signs like reduced login frequency or missed renewals.
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