A Customer Relationship Management (CRM), is beyond just a software application, it is a methodology that allows businesses to acquire relevant information about its customers so as to learn about their needs and behavior to help develop a better relationship with them.
A CRM tool is a solution that can really help any business, but startups in particular, to showcase credibility to investors. There are reports of start-ups that were able to secure several stages of funding due to the use of a good CRM solution.Having one in place is extremely crucial, especially when you begin your outbound process and start to hire out the sales team
Once your business starts to expand, you will benefit from the advancement digitalization has had upon the product and service fields. There are various SaaS products available in the market, such as CRM software, or automation software that can introduce enhanced sales management to your business process.
Consequently, it helps speed up the growth of business whether it is already established or a start-up.
Reasons Startups with CRM are able to Influence Investors better on Uprise.Africa
1. Better Forecast and Estimation
An investor is concerned about two things, the performance data of a start-up and its growth potential. CRM when properly utilized captures these two factors perfectly. It provides information on the achievement of the start-ups in real-time and their future prospects. Business founders need substantial information about clients and projections to build a more powerful pitch for investors. Data provided also allows investors to examine whether the start-up is accurately valuated.
2. Start-up with CRM become Process-centric
A start-up’s success depends on their product and processes. If the start-up has good processes but an unexceptional product, there is still room for improvement. However, if the processes are mediocre and the product is top quality, it is set up for failure. Efficient utilization of CRM solution makes sure the start-up has an effective operational process. Moreover, it shows investors that a start-up favours strategy.
3. CRM shows the Monetization method
Another point crucial for startups to consider is taking care of their customers, aside from products, this factor determines the growth rate of the start-up.
CRM is not just a tool for attracting investors alone. It is utilized so the business can grow in an organized way, and making use of technology to achieve that.
Transparency is quite important to investors, for example, if as a start-up on Uprise.Africa, you are making claims of huge sales volume but can’t back it up with anything except invoices. On the other hand, we have another start-up that is able to back up its sales figures with data on customer interactions such as purchase pattern, number of purchases, etc. Investors would be more convinced about the second start-up because there is proof that actual transactions taking place.
Transparency in your startup transactions and cements the trust between the business owner and investors.
CRM software allows start-ups and SMB’s to manage their ever-growing contact list with ease. In addition to that, it also allows you to divide responsibilities, leads, and accounts among-st the available human resources.
With the increasing number of start-ups vying for investment on Uprise.Africa platform, start-up founders should keep in mind that authenticity is an important factor that investors are looking for. This value is not derived from complex presentation, pledges or impractical projections.
To give your start-up the authenticity it needs to successfully conclude its equity crowdfunding campaign, you have to be able to present evidence of the concept you are pitching along with past performance data. The data should show commitment, processes adopted, and finally the growth pattern of the start-up
Start-ups with all this information are more likely to secure more investors willing to commit through equity crowdfunding campaigns.
Find out more on how to secure investment on our website https://howitworks.uprise.africa/.
An experienced Journalist cum Digital Marketer who has worked in Media and Marketing in various Southern African countries for close to 15 years. An avid reader, she is passionate about fostering a reading and academic culture especially in young Africans. She enjoys travelling, meeting people from a broad cultural spectrum as well as engaging people in topics that are informative, entertaining and insightful. Grace is currently an Accounts Manager and Content Writer for CreativeMagic Group.