The Right CRM Software Can Save You From The Wrong Customers

One of the most common mistakes new companies make is trying to go after the widest possible pool of potential customers. Although this may may seem like a smart strategy, it doesn't take into account the fact that not all customers have the same value. And while this mistake is most commonly made by new companies, there are plenty of established companies that fall into the trap of thinking that this approach will be the solution to any problems they're experiencing. 

The Sale is Just the Beginning 

So, why is it a bad idea to view everyone on the planet as a potential customer? Well, there are actually two answers to that question. First, whether you sell a product or service, closing a sale doesn't mean your relationship with that customer is over. On the contrary, it's actually just beginning. And if you end up selling to a customer who's a hassle, they're going to be a drain on your support resources. 

The second reason is if your marketing doesn't have any kind of targeting, you're going to waste a lot of time and resources pursuing opportunities that have little to no chance of actually converting into sales.

Focus on Quality, Not Quantity 

Because pursuing and even landing the wrong customers can be a drain on resources across your company, a much better strategy is to focus on a smaller group of potential customers that have the types of traits you actually want. If you're a new company, you may not know exactly what types of traits you want form customers. And even if you're an established company that does have this information, you may not be completely sure about how to put it to work when evaluating potential customers. 

A CRM Makes Tracking a Breeze 

In either scenario, the answer to this dilemma is to use online CRM software. For a new business that's just starting to bring in customers, a CRM makes it extremely easy to track information about new customers over time. By collecting this data in a form that's easy to analyze, you'll start to see what types of traits your ideal customers should possess. And if you end up with a few wrong customers, you'll also be able to use this data to know what to avoid in the future. 

For an established company that already knows what kinds of traits they want their customers to have, a CRM makes it easy to collect key data about prospects and then automatically analyze this data to see how good of a fit that specific prospect is. And thanks to the easily accessible nature of a cloud CRM, this information can be shared between sales, marketing and any other departments that can benefit from it. 

As many companies have learned firsthand, figuring out the ideal type of prospect to target often takes some trial and error. But by utilizing all the features that a CRM can offer, it's possible to minimize the amount of error involved in this process.

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Craig Klein is CEO of Sales Nexus in Houston Texas. Sales Nexus is a leading online CRM software for small businesses and sales organizations. Craig's passion is helping small businesses hire, train, measure and manage sales people through their sales process. Follow Craig on Google+ and Twitter to learn more.