Why Contact Management System Is Important For Businesses

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Nowadays, every business relies on a good relationship with its customers. Customer experience has become so important that it has eclipsed the importance of product quality. Building a meaningful relationship with customers, based on trust and loyalty, is a long and demanding process.

Once companies manage to create such a relationship, they want to maintain it at all costs. However, the larger your customer base, the more difficult it becomes to deal with everyone effectively. Fortunately, modern technology is there to help companies in such endeavors. This is where contact management systems come into place.

A contact management system is part of a larger solution called customer relationship management (CRM). CRMs have become an integral part of every company’s customer service strategy, and contact management systems are essential components of these strategies as well. With that in mind, here are a few reasons why contact management systems are important for businesses.

Leverage personalization

Information about an individual customer is a valuable asset for every business. Your customer service and support representatives keep this information in their databases so they can meet the needs of consumers and help them more effectively resolve any issues they may encounter.

However, this information is just too valuable to keep somewhere in a database. With a contact management system, your other departments can take advantage of this information and put it to good use. For example, your sales department can extract contact information and use it to create personalized offers.

This will encourage customers to explore your offerings and maybe even opt for a purchase. Needless to say, the chances of convincing a customer to make a purchase increase dramatically if you take advantage of personalization the right way. That being said, around 80% of consumers are more likely to make a purchase if the brand provides them with a personalized experience.

Upsell and cross-sell promotions

Customer service representatives will eventually try to convince customers to consider premium products or services. Cross-selling and upselling offers are good examples. If a customer decides to go with one of your cross-sell or up-sell promotions, it’s vitally important that your support staff have access to information about those customers.

Many contact management systems have built-in functionality to help members of various departments quickly share vital information. For example, if you use Google Workspace, some CMS, including Shared Contacts for Gmail®, have a contact sharing feature that makes it easier to share Google contacts. This allows members of one department to share customer information with members of another department or anyone who uses Gmail or Google Workspace.

A good example is a collaboration between customer service and customer support departments or between marketing and sales. The key is being able to share information quickly so customers don’t get colder while departments struggle to communicate. In other words, once a client is ready to make a decision, you need to capitalize quickly before they reconsider.

Maintain a relationship with your customers

Each customer service and support representative works with your customers every day. Over time, they tend to understand your customers better and are able to meet individual customer needs more effectively. However, your employees may take sick leave or go on vacation, or they may leave your company in search of a better job.

In this case, new employees will have to build a relationship with customers from scratch. Fortunately, your CMS can fill this gap and provide new hires or those replacing coworkers with valuable customer information. This way, you can maintain this relationship without interruptions that may cause inconvenience or misunderstanding.

What’s important is that consumers won’t hesitate to give up on your business if they have a bad service or support experience. That’s why it’s crucial that all of your employees have access to customer information so that they can continue to provide them with a great experience.

Improved productivity

Shared contacts mean shared information. Any new employee who comes to work for you will have access to this information once their integration and training programs Has been completed. In other words, new hires won’t have to familiarize themselves with various processes or familiarize themselves with customers, for that matter.

All the information is there, and your new employees can start leveraging that information as soon as they start working. Their productivity will therefore improve from the start because they will not have to learn the ropes beforehand. It doesn’t matter if a new employee ends up in service, support, sales or marketing, the information will be available wherever they are.

This information will also help other employees improve their productivity. For example, they will no longer have to formally request access to information. Instead, they just open up a company’s CMS and the information is already there. Even if not, employees can share all of their contacts with their coworkers with just the click of a single button.

As mentioned earlier, a contact management system is part of a larger solution, but that doesn’t mean that you have to go with a CRM to be able to benefit from the contact sharing features. CRM software is, indeed, invaluable to businesses, but if your business is content with CMS, feel free to use it.


Emma Worden is a digital marketer and blogger from Sydney. After graduating with a marketing degree, she started working with Australian startups on business development and marketing. Worden writes for numerous industry-related online publications and is an editor at Bizzmark Blog and guest lecturer at the University of Melbourne. Interested in marketing, startups and the latest business trends? Follow her on Twitter.

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