CUSTOMER LIFETIME VALUE [CLV]

Definition: Customer Lifetime Value or CLTV is the present value of the future cash flows or the
value of business attributed to the customer during his or her entire relationship with the company.

Description: CLTV is the value a customer contributes to your business over the entire lifetime at
your company. It is a very important metric and is used while making important decisions about
sales, marketing, product development, and customer support.
CLV describes the net present value of the stream of future profits expected over the customers’
lifetime purchases. Customer lifetime value (CLV) is a business metric that measures how much a
business can plan to earn from the average customer over the course of the relationship.
Differences in products, costs, purchase frequencies and purchase volumes can make customer
lifetime value calculations complex.
It is useful metric used by marketing managers especially at a time of acquiring a customer.
Ideally, lifetime value should be greater than the cost of acquiring a customer. Some also call it a
break-even point.

The basic formula for calculating CLTV is the following

(1):(Average Order Value) x (Number of Repeat Sales) x (Average Retention Time)

Customer Lifetime Value (CLV) Explained

Customer lifetime value boils down to a single number, but there may be significant
nuances..

For example, let’s examine how a grocery chain may look at CLV. Based on data in the
company’s ERP system, it can see that the typical customer spends $50 per visit and comes in
an average of once every two weeks (26 times per year) over a seven-year relationship. The
grocer can find its CLV by multiplying those three numbers — 50 x 26 x 7 — for a value of
$9,100. But why does that number matter? We’ll dig into the details in the next section.

Why Is Customer Lifetime Value Important to Businesses? Why Does It Matter?

In the example above, we figured out the average lifetime value of a customer for a grocery
store. But why do businesses care about CLV? Here are a few key reasons to track and use
CLV:

You Can’t Improve What You Don’t Measure:

Once you start measuring customer lifetime value and breaking down the various
components, you can employ specific strategies around pricing, sales, advertising and
customer retention with a goal of continuously reducing costs and increasing profit.

Make Better Decisions on Customer Acquisition Costs:

When you know what you will earn from a typical customer, you can increase or decrease
spending to ensure you maximize profitability and continue to attract the right types of
customers.
Improved Forecasting:
CLV forecasts help you make forward-looking decisions around inventory, staffing,
production capacity and other costs. Without a forecast, you could unknowingly overspend
and waste money or underspend and put yourself in a bind where you struggle to keep up
with demand.

Advantages of Customer Lifetime Value

Improve Customer Retention:

One of the biggest factors in addressing CLV is improving customer retention and avoiding
customer attrition. Tracking these details with accurate segmentation can help you identify
your best customers and determine what’s working well.

Drive Repeat Sales:

Some retailers, tech companies, restaurant chains and other businesses have loyal customer
bases that come back again and again. You can use CLV to track the average number of visits
per year or over the customer lifetime and use that data to strategize ways to increase repeat
business.

Encourage Higher-Value Sales:

Netflix is an example of a business that improved CLV through higher pricing but learned
years ago that increasing costs too quickly may scare off long-time customers. The right
balance is key to success here.

Increase Profitability:
Overall, a higher CLV should lead to bigger profits. By keeping customers longer and
building a business that encourages them to spend more, you should see the benefit show up
on your bottom line.

Challenges of Customer Lifetime Value

It Can Be Hard to Measure:

If you don’t have quality tracking systems in place, calculating CLV can be difficult. An
enterprise resource planning (ERP) or customer relationship management (CRM) system can
make this information easily available on an automated dashboard that tracks KPIs.

High-Level Results May Be Misleading:

Looking at a business’s total CLV can be a helpful data point, but it can also cover up
problems in certain customer segments. Breaking down the data by customer size, location
and other segments may provide more useful data.

4 Steps to Measure Customer Lifetime Value

Determine Your Average Order Value:

Start by finding the value of the average sale. If you have not been tracking this data for long,
consider looking at a one- or three-month period as a proxy for the full year.
Calculate the Average Number of Transactions Per Period:

Do customers come in several times a week, which might be common with a coffee shop, or
only once every few years, which could be the case at a car dealership? The frequency of
visits is a major driver of CLV.

Measure Your Customer Retention:

Finally, you’ll need to figure out how long the average customer sticks with your brand.
Some brands, like technology and car brands, inspire lifelong loyalty. Others, like gas
stations or retail chains, may have much less loyal customers.

Calculate Customer Lifetime Value:

Now you have the inputs. It's time to multiply the three numbers together to calculate CLV
per the formula below.

Customer Lifetime Value Formula

Here is the formula for customer lifetime value:

CLV = Average Transaction Size x Number of Transactions x Retention Period

Each of these inputs acts as a lever you can pull to grow your CLV. However, every move
your business makes may have unintended consequences that impact CLV. For example, a
price increase may improve your average transaction size, but it could push customers to
shop less often or look for lower-cost alternatives.

Experienced marketers familiar with the four Ps of marketing — product, place, price and
promotion — have a strong understanding of how marketing efforts directly influence
customer lifetime value.

Customer Lifetime Value Examples

The best way to understand CLV is through examples. Here are examples from three very
different industries to better demonstrate how customer lifetime value may impact your
company:

Coffee shop
A coffee shop is a perfect starting example for CLV, as it is easy to understand even if you
don’t have an extensive business background. Let’s say a local coffee chain with three
locations has an average sale of $4. The typical customer is a local worker who visits two
times per week, 50 weeks per year, over an average of five years.
CLV = $4 (average sale) x 100 (annual visits) x 5 (years) = $2,000

Car dealership
A car dealership has a much higher average sale amount with a lower purchase volume. In
this example, we'll assume someone buys a new car every five years for $30,000. Customers
are loyal to this brand and tend to keep buying from it for 15 years.
CLV = $30,000 (average sale) x .2 (annual purchases) x 15 (years) = $90,000
Software as a Service (SaaS) subscription
For the last example, let’s assume an online video streaming service has multiple price plans,
but the average customer spends $17 per month. Customers typically subscribe for three and
a half years and use automatic monthly payments.
CLV = $17 (average sale) x 12 (annual purchases) x 3.5 (years) = $714

14 Ways to Improve CLV

There are many different strategies companies can adopt to boost their CLV. Here are 14
ideas to consider if you’re trying to earn more revenue from the typical customer:

Customer Loyalty or Rewards Programs

Customer loyalty programs keep customers engaged and reward frequent purchases. Airline
frequent flyer programs and restaurant punch cards are popular examples. Incentivizing
customers to return can increase purchase frequency and the amount of time a customer buys
from a brand.

Customer Experience

Your website, storefront, call center and other touch points are all part of the customer
experience. If customers enjoy a smooth, low-stress shopping experience every time, they are
more likely to return for repeat business.

Improve Customer Onboarding

Some customers buy a product or service from a business and don't know what to do next.
Successful businesses chart a path for their customer relationships over time. Turning a one-
time customer into a source of recurring revenue is essential for growth in many industries.

Customer Engagement

Businesses that actively monitor all interactions between the company and their customers
can identify ways to improve the customer experience and customer loyalty. This should span
channels like advertising, customer support and sales.

Improved Customer Service

Bad customer service is a quick way to see your CLV quickly fall, as customers leave for
competitors. Focusing on making every customer service interaction a positive one will
further enhance customer loyalty. CRM systems and dedicated customer service platforms
bring these interactions to one central location for streamlined management.

Customer Relationship Management

Businesses need to understand their relationships and communication history with customers
across sales, customer service and marketing. ERP and CRM systems help track and enhance
these relationships over time by creating a seamless flow of information across the entire
customer lifecycle — from lead all the way through opportunity, sales order, fulfillment,
renewal, upsell and support.

Customer Feedback Loop

If a customer does have a bad experience, it shouldn't go unresolved. In addition to relying on

customer service to fix the issue, businesses should continuously solicit customer feedback to
enhance the customer experience. Regular product or service iterations and fixes can resolve
problem areas, helping to improve customer satisfaction.

Invest in Technology & Software

Technology can automate processes and track and centralize much of your business data.
Some companies rely on basic tools like email, spreadsheets and contact databases to manage
all this information, but it’s much easier to use proven, packaged software suites to handle
these functions. Your customers will notice the difference.

Upsell and Cross-Sell

It's often easier to reengage or upsell an existing customer than bring in a new one. Upselling
and cross-selling are strategies designed to encourage customers to buy more expensive or
multiple products or services at once instead of a lower-cost option.

Increase Pricing

When done correctly, a price increase can directly increase CLV. Just take care to avoid
scaring off customers with dramatic price increases. Also, consider competitor pricing when
determining your own. By focusing on value and giving customers something they can’t get
elsewhere, you may be able to increase pricing without losing customers.

Social Media

One of the best places to get your customers' attention is to reach them in places where they
already spend time. Social media platforms like Facebook, Instagram, Twitter and TikTok are
meaningful channels to both advertise and interact with customers.

Simple Purchasing Experiences

Cart abandonment rate is a metric used by online businesses to track how many customers
start shopping but leave before completing the checkout process. This can also extend to in-
person buying experiences where excessive options and packaging can turn customers off.
Building a simple purchase experience will help you capture every possible sale. Forward-
looking businesses use strategies like A/B testing to find out what works best.

Make Returns Easy

When a customer isn’t happy with their product or service, making returns and exchanges
difficult may cost you a customer for good. A painless returns process makes it more likely a
customer will come back and give your product or service another try.
Targeted Content

Content marketing is a strategy used to educate or entertain your target customers, usually
designed to build up brand trust and loyalty. Blog posts, e-books videos, podcasts and other
media are popular forms of targeted content that can speak to particular segments of your
audience.

CULTIVATING CUSTOMER RELATIONSHIPS

Companies are using information about customers to enact precision marketing designed to build
strong long-term relationships
A) Information is easy to differentiate, customize, personalize, and dispatch over networks at
incredible speed.
B) Customer empowerment has become a way of life for many companies that have had to
adjust to a shift in the power with their customer relationships.
Customer Relationship Management (CRM)
Customer relationship management (CRM) is the process of carefully managing detailed
information about individual customers and all customer “touch points” to maximize loyalty.
Personalizing Marketing
Personalized marketing is about making sure the brand and its marketing are as relevant as
possible to as many customers as possible.
A) An increasingly essential ingredient for the best relationship marketing today is the right
technology.
B) E-commerce companies looking to attract and retain customers are discovering that
personalization goes beyond creating customized information.
C) Companies are also recognizing the importance of the personal component to CRM and
what happens once customers make actual contact with the company.
1) Employee can create strong bonds with customers by individualizing and
personalizing relationships.
D) To adapt to customers’ increased desire for personalization, marketers have embraced
concepts such as permission marketing and one-to-one marketing.
1) Permission marketing is the practice of marketing to consumers only after gaining
their expressed permission, is based on the premise that marketers can no longer use
“interruption marketing” via mass-media campaigns.
a) It is “anticipated, personal, and relevant.”
2) Presumes consumers know what they want.
a) “Participatory marketing” may be more appropriate—marketers and consumers
work together to find out how the firm can best satisfy consumers.
A four-step approach to one-to-one marketing:
A) Identify your prospect and customers.
B) Differentiate customers in terms of their needs and their value to your company.
 C) Interact with individual customers to improve your knowledge about their individual needs
and to build strong relationships.
D) Customize products, service, and messages to each customer.

Customer Relationship Management: The Ultimate Guide To CRM

As the name suggests, customer relationship management (CRM) refers to the
practices, strategies, and technologies used by the marketers to manage the
company’s relationship with the customers and to get higher profits through
customer satisfaction and customer loyalty. According to Kotler:
Customer Relationship Management (CRM) is the process of carefully managing detailed
information about individual customers and all customer “touch points” to maximize customer
loyalty.
In simple words, CRM is how you make use of the customer data to meet the
needs of your existing customers better and identify and serve new customers to
earn more profits for your efforts.
CRM has following building blocks:
 A CRM database to collect the customer information.
 Using technological intelligence to analyze the information.
 A strategy to capitalize on all the customers’ needs and the touchpoints to
identify potential customers.
 Collecting data to ensure the strategy is effective.
Customer Relationship Management Examples
CRM refers to the data-centric holistic approach that the company takes to manage
its relationship with the customers. For a hotel company, the available touch points
include reservation (website, application, text messaging, third-party portals),
check-in, check-out, frequent-stay programs, room service, business service,
exercise facilities, laundry service, restaurants, bars, online and offline follow-ups,
emergency services/phone numbers, cab services, etc. The company makes use of
all these touch points with the help of their well-trained staff who offer
personalized service to the customers. These may include remembering the name
of the customer, calling them after their stay just to know about their experience,
giving them discounts for their next visit, offering them enhanced services (like
spa) for their next visit at a discount, etc.
Some websites/blogs analyze your interests in the published topics and send you
personalized newsletters consisting of articles and posts of your interest.
Moreover, they even suggest more relevant articles when you’re on their website.
This reduces their bounce rate as you get what interests you.
Another great example of CRM is the specially designed postpaid/prepaid plans
offered by your telecom operator. They make use of your usage data and design
special plans just to increase your satisfaction and to make you loyal to their brand.
CRM not only helps to retain the existing customers but leads to increased word of
mouth marketing as well.
CRM Objective
The objective of CRM is to build customer equity and help the company make
profits in the long run. Customer equity is the value of potential future revenue
generated by the company from a customer in his lifetime.
Marketers use customer relationship management marketing to provide better,
more customized and personal service to the customers to enhance customer
satisfaction and make them loyal to the company. CRM analysts are employed to
develop data warehouses and use data mining techniques for the same.
Importance Of CRM
Besides the simple fact that in this competitive environment a company has to
make use of customer data to satisfy their customers’ needs better and to retain
them, here are few points to explain the importance of customer relationship
management:
Increasing Customer Perceived Value
Customer perceived value is customer’s perception of the benefit received as
compared to the cost paid by him. CRM focuses on one-to-one marketing and
increasing the value of the customer base by forming relationships which
increase the customer perceived value which eventually increases the customer
equity.
Reducing The Rate Of Customer Defection
Customer Relationship Managers select and train employees to be knowledgeable,
friendly, and smart enough to interact with the customers effectively and
satisfactorily by using customer’s data. This strategy of wooing customers using
their own data reduces customer attrition.
Better Customer Oriented Strategies
When you know about the customers, you develop better strategies to woo, attract,
and retain them.
Long-Term Relationships
The more involved a customer is with the company, the more likely he is to stick
around. Some companies treat their customers as partners, some provide special
status to their old customers, while some ask for their advice while building new
products or designing new services. All these practices work in the favour of the
companies and make the customers stay for long.
Competitive Advantage
CRM helps in providing better service to the customers and developing effective
relationships. It involves a holistic approach where all the departments from
manufacturing to marketing to services know about the customers and help to
design a 360-degree strategy revolving around the customer. This definitely gives
the company a competitive advantage when it comes to existing customers.
Making Low-Profit Customers More Profitable
CRM helps managers to separate low-profit customers from more-profit customers
and also help them develop strategies to convert low-profit customers more
profitable. Banks, telecom operators, and travel companies use this strategy
effectively on a regular basis.
Who is A Customer Relationship Manager?
A customer relationship manager is someone who is responsible to maintain long
and healthy relationships with the existing customers. He analyzes and uses the
pool of data effectively to form strategies to increase the longevity of the customer
relationship, address existing customers’ queries and complaints, make low-profit
customers more profitable, etc.
What Is A CRM System?
A CRM system is a (software) tool which helps you to save and keep the business
relationship data up to date. It can be an automated spreadsheet, or a well designed
and customized tool for your business need.
It is the central place where all the data of your customers are stored and can be
retrieved from. A customer relationship management system has many advantages
over storing information offline and on simple spreadsheets. The software records
your every interaction with the customer and updates the records so you never
miss anything. It can also be configured to send alerts and reminders as an when
needed.
A customer relationship manager can easily segregate customers and form
different strategies for customers fulfilling different prerequisites.
Go On, Tell Us What You Think!
Did we miss something? Come on! Tell us what you think about our article on
customer relationship management (CRM) in the comments section.

A startup consultant, digital marketer, traveller, and philomath. Aashish has

worked with over 20 startups and successfully helped them ideate, raise money,
and succeed. When not working, he can be found hiking, camping, and stargazing.
CRM (customer relationship management)
Customer relationship management (CRM) refers to the principles, practices, and guidelines
that an organization follows when interacting with its customers.

Customer relationship management (CRM) is the combination of practices, strategies and

technologies that companies use to manage and analyze customer interactions and data
throughout the customer lifecycle. The goal is to improve customer service relationships and
assist in customer retention and drive sales growth. CRM systems compile customer data
across different channels, or points of contact, between the customer and the company, which
could include the company's website, telephone, live chat, direct mail, marketing materials
and social networks. CRM systems can also give customer-facing staff members detailed
information on customers' personal information, purchase history, buying preferences and
concerns.

From the organization's point of view, this entire relationship encompasses direct interactions
with customers, such as sales and service-related processes, forecasting, and the analysis of
customer trends and behaviors. Ultimately, CRM serves to enhance the customer's overall
experience.
Why CRM benefits businesses

The use of CRM systems can benefit organizations ranging from small businesses to large
corporations, through:

 Having customer information such as past purchases and interaction history easily
accessible can help customer support representatives provide better and faster customer
service.
 Collection of and access to customer data can help businesses identify trends and insights
about their customers through reporting and visualization features.
 Automation of menial, but necessary, sales funnel and customer support tasks.

Types of CRM

Today, many comprehensive CRM platforms integrate all parts of the customer relationship
the business may have. However, some CRMs are still designed to target a specific aspect of
it:

Sales CRM: to drive sales and increase the pipeline of new customers and prospects.
Emphasis is placed on the sales cycle from tracking leads to closing deals.

Marketing CRM: to build, automate, and track marketing campaigns (especially online or
via email), including identifying targeted customer segments. These CRMs provide real-time
statistics and can use A/B testing to optimize strategies.

Service CRM: integrated dedicated customer service support with sales and marketing.
Often features multiple contact points including responsive online chat, mobile, email, and
social media.
Collaborative CRM: encourages the sharing of customer data across business segments and
among teams to improve efficiency and communication and work seamlessly together.

Small Business CRM: optimized for smaller businesses with fewer customers to give those
customers the best possible experience. These systems are often much simpler, intuitive, and
less expensive to implement than enterprise CRM.

Components of CRM

At the most basic level, CRM software consolidates customer information and documents it
into a single CRM database so business users can more easily access and manage it.
Over time, many additional functions have been added to CRM systems to make them more
useful. Some of these functions include recording various customer interactions over email,
phone, social media or other channels; depending on system capabilities, automating various
workflow automation processes, such as tasks, calendars and alerts; and giving managers the
ability to track performance and productivity based on information logged within the system.

Marketing automation. CRM tools with marketing automation capabilities can automate
repetitive tasks to enhance marketing efforts at different points in the lifecycle for lead
generation. For example, as sales prospects come into the system, it might automatically send
email marketing content, with the goal of turning a sales lead into a full-fledged customer.
Sales force automation. Sales force automation tools track customer interactions and
automate certain business functions of the sales cycle that are necessary to follow leads,
obtain new customers and build customer loyalty.

Contact center automation. Designed to reduce tedious aspects of a contact center agent's
job, contact center automation might include prerecorded audio that assists in customer
problem-solving and information dissemination. Various software tools that integrate with
the agent's desktop tools can handle customer requests in order to cut down on the length of
calls and to simplify customer service processes. Automated contact center tools, such as
chatbots, can improve customer user experiences.

Geolocation technology, or location-based services. Some CRM systems include

technology that can create geographic marketing campaigns based on customers' physical
locations, sometimes integrating with popular location-based GPS (global positioning
system) apps. Geolocation technology can also be used as a networking or contact
management tool in order to find sales prospects based on a location.

TechTarget

CRM tools specifically for social media platforms help companies foster customer relationships and
monitor customer sentiments around their brands.

 Workflow automation. CRM systems help businesses optimize processes by streamlining

mundane workloads, enabling employees to focus on creative and more high-level tasks.
 Lead management. Sales leads can be tracked through CRM, enabling sales teams to input,
track and analyze data for leads in one place.
 Human resource management (HRM). CRM systems help track employee information, such
as contact information, performance reviews and benefits within a company. This enables
the HR department to more effectively manage the internal workforce.
 Analytics. Analytics in CRM help create better customer satisfaction rates by analyzing user
data and helping create targeted marketing campaigns.
 Artificial intelligence. AI technologies, such as Salesforce Einstein, have been built into CRM
platforms to automate repetitive tasks, identify customer-buying patterns to predict future
customer behaviors and more.
 Project management. Some CRM systems include features to help users keep track of client
project details such as objectives, strategic alignment, processes, risk management and
progress.
  Integration with other software. Many CRM systems can integrate with other software,
such as call center and enterprise resource planning (ERP) systems.

Types of CRM technology

The four main vendors of CRM systems are Salesforce, Microsoft, SAP and Oracle. Other
providers are popular among small to midsize businesses, but these four tend to be the choice
for large corporations. The types of CRM technology offered are as follows:

Cloud-based CRM

With CRM that uses cloud computing, also known as SaaS (software as a service) or on-
demand CRM, data is stored on an external, remote network that employees can access
anytime, anywhere there is an internet connection, sometimes with a third-party service
provider overseeing installation and maintenance. The cloud's quick, relatively easy
deployment capabilities appeal to companies with limited technological expertise or
resources.

Data security is a primary concern for companies using cloud-based systems, as the company
doesn't physically control the storage and maintenance of its data. If the cloud provider goes
out of business or is acquired by another company, an enterprise's data can be compromised
or lost. Compatibility issues can also arise when data is initially migrated from a company's
internal system to the cloud.

Companies might consider cloud CRM as a more cost-effective option. Vendors typically
charge the user on a subscription basis and offer the option of monthly or yearly payments.
However, cost may still be a concern, because paying subscription fees for software can be
more costly over time than with on-premises models.

Popular cloud-based CRM providers include Salesforce, HubSpot and Zendesk.

On-premises CRM

This system puts the onus of administration, control, security and maintenance of the
database and information on the company using the CRM software. With this approach, the
company purchases licenses upfront, instead of buying yearly subscriptions from a cloud
CRM provider. The software resides on the company's own servers and the user assumes the
cost of any upgrades. It also usually requires a prolonged installation process to fully
integrate a company's data. Companies with complex CRM needs might benefit from an on-
premises deployment.

Many cloud-based providers, such as Salesforce and WorkWise, also offer on-premises
versions of their CRM software.
TechTarget

CRM systems have moved far beyond traditional customer profiling functions.

Open source CRM

An open source CRM system makes source code available to the public, enabling companies
to make alterations at no cost to the company employing the system. Open source CRM
systems also enable the addition and customization of data links on social media channels,
assisting companies looking to improve social CRM practices.

Open Source CRM platforms such as OroCRM, Bitrix24, SuiteCRM and SugarCRM offer
alternatives to the proprietary platforms from Salesforce, Microsoft and other vendors.

Adoption of any of these CRM deployment methods depends on a company's business needs,
resources and goals, as each has different costs associated with it.

CRM examples in practice

Examples of CRM usage vary by the type and purpose of the specific CRM system.

Contact center

Traditionally, data intake practices for CRM systems have been the responsibility of sales and
marketing departments, as well as contact center agents. Sales and marketing teams procure
leads and update the system with information throughout the customer lifecycle, and contact
centers gather data and revise customer history records through service calls and technical
support interactions.

Social CRM

Social media in CRM involves businesses engaging with customers directly through social
media platforms, such as Facebook, Twitter and LinkedIn. Social media presents an open
forum for customers to share experiences with a brand, whether they are airing grievances or
promoting products.

To add value to customer interactions on social media, businesses use various social CRM
tools that monitor social media conversations -- from specific mentions of a brand to the
frequency of keywords used -- to determine their target audience and which platforms they
use. Other tools are designed to analyze social media feedback and address customer queries
and issues.

Companies are interested in capturing customer sentiments, such as the likelihood they will
recommend products and their overall customer satisfaction, to develop marketing and
service strategies. Companies try to integrate social CRM data with other customer data
obtained from sales or marketing departments to get a single view of the customer.

Another way in which social CRM adds value for companies and customers is through
customer communities, where customers post reviews of products and can engage with other
customers to troubleshoot issues or research products in real time. Customer communities can
provide low-level customer service for certain kinds of problems and reduce the number of
contact center calls. Customer communities can also provide new product ideas or feedback
that companies can use in lieu of feedback groups.

Mobile CRM

CRM applications built for smartphones and tablets have become a must-have for sales
representatives and marketing professionals who want to access customer information and
perform tasks when they are not physically in their offices. Mobile CRM apps take advantage
of features that are unique to mobile devices, such as GPS and voice recognition capabilities,
to give sales and marketing employees access to customer information from anywhere.

Business-to-business (B2B) practices

A CRM system in a B2B environment helps monitor sales as they move through the sales
funnel, enabling a business to address any issues that might come up during the process.
CRM systems in the B2B market help create more visibility into leads and, therefore,
increase efficiency throughout the sales process.
CRM challenges

For all of the advancements in CRM technology, without the proper management, a CRM
system can become little more than a glorified database in which customer information is
stored. Data sets need to be connected, distributed and organized so that users can easily
access the information they need.

Companies may struggle to achieve a single view of the customer if their data sets are not
connected and organized in a single dashboard or interface. Challenges also arise when
systems contain duplicate customer data or outdated information. These problems can lead to
a decline in customer experience due to long wait times during phone calls, improper
handling of technical support cases and other issues.

CRM systems work best when companies spend time cleaning up their existing customer data
to eliminate duplicate and incomplete records before they supplement CRM data with
external sources of information.