9 minute read

Top 10 CRM: The Benefits of CRM for the Manufacturing Industry

November 22, 2023

CRM, Manufacturing

Adoption of new technology in manufacturing has traditionally been a slow process. In recent years, however, that has changed. That’s where CRM comes in.

Once thought of primarily as a sales tool, CRM software (customer relationship management) has evolved a lot over the years. A modern CRM platform provides indispensable tools for teams of all kinds and organizations in almost every industry.

While the adoption of new technology by the manufacturing industry has traditionally been a slow process, recently that has changed.

Market factors like increasing competition, the need for operational efficiency, and a focus on customer-centric strategies have helped manufacturers recognize the importance of adopting technologies that can help them streamline their processes and enhance customer engagement.

That’s where CRM comes in.

In this article, we will explore the benefits of CRM software for a manufacturing business and outline ways manufacturers can use these powerful tools to compete in an increasingly competitive market.

1. Real-time inventory management

A CRM platform can significantly improve inventory management for manufacturers by streamlining order and fulfillment processes and offering valuable insights that can inform production levels.

Integration with inventory management software or ERP- CRM integration with inventory management software or ERP (enterprise resource planning) enables real-time visibility into inventory levels.

This provides the sales team with up-to-date information on product availability, preventing over-promising and ensuring accurate order fulfillment and on-time delivery.

For customer support teams, this makes it faster and easier to manage returns and exchanges, creating a better customer experience

Demand forecasting- A CRM system can analyze customer information such as historical purchase data and current buying trends to forecast demand for a product or service.

This can be used to set production timelines and determine quantities, ensuring that just the right amount of product is produced to meet customer demand without excess.

Accurate production forecasting can greatly reduce carrying costs and the risk of stockouts while building customer loyalty and establishing market trust.

2. Streamlined sales processes

Implementing CRM-driven enhancements in the sales process allows manufacturers to improve efficiency, optimize resource allocation, and drive revenue growth.

Lead and pipeline management- CRM systems can help manufacturers capture, organize, and track leads from a variety of sources.

These leads can be qualified based on criteria such as industry, location, and potential deal value, ensuring that resources are focused on leads with the highest likelihood of conversion.

Additionally, sales leaders can set up processes that distribute leads to sales reps automatically, facilitating a timely response.

Quote management- A modern CRM solution includes features for creating and managing quotes and proposals. This can reduce manual errors, ensure consistency, and speed up the sales cycle.

Quotes can also be tracked within the CRM, allowing for better performance assessment and refinement.

3. Effective communication and engagement

CRM’s robust communication and engagement features can help manufacturers nurture and grow relationships with their customers and partners.

Personalized messaging- With CRM, a manufacturing company can personalize communication cadences to align with the preferences of their audience.

All marketing, sales, and customer support communications can be delivered through preferred channels (email, text/SMS) at preferred times, improving deliverability and fostering a sense of individualized attention.

Personalized communication fosters a stronger customer relationship and demonstrates a continuous effort to meet and exceed customer needs.

Customer segmentation- With CRM, a manufacturing business can segment their customers based on various criteria, such as:
- Demographic data (country, language, time zone)
- Communication preferences
- Purchase history
- Company size
- Industry

Targeted communication cadences can be designed for each segment, improving the relevance of the messaging and increasing engagement potential.

4. Improved collaboration

CRM enables seamless collaboration between sales, marketing, production, and customer service teams.

Centralized communication- Within a CRM, all communications across all channels, departments, contacts, and accounts are captured and centralized for easy access and collaboration.

Team members can send notifications for approval requests or handoffs, submit special requests from customers, and collaborate on inter-departmental projects.

All of this leads to greater operational efficiency and a more agile and responsive workforce.

Aligned processes- Through CRM workflow automation and integration, business processes can be aligned across teams and departments.

Your sales team can access real-time inventory data, leading to more accurate quotes and delivery estimates.

Marketing teams can access up-to-date production schedules in order to plan promotions and outreach campaigns.

Product teams can access sales data and customer information to set priorities and inform product roadmaps.

Collaborative tools and features such as shared calendars, internal messaging systems, and automated notifications and reminders facilitate better information flow and coordination across departments.

5. Enhanced regulatory compliance

CRM can help manufacturing leaders stay up-to-date with the documentation and certifications that are required to operate in the manufacturing industry.

Audit trail and traceability- A CRM system can track and store user activities, record changes and updates, and product-specific data such as serial and batch numbers.

This level of traceability provides a manufacturing company with a clear record that ensures transparency and accountability. It can also assist with recalls or warranty updates.

Document and certification management- CRM systems include document management capabilities that can help manufacturers organize and store compliance-related records such as quality control assessments, RMAs (return merchandise authorization), and employee certifications.

As an additional CRM benefit, compliance processes can be automated in accordance with standardized regulatory practices to ensure that certification and compliance documentation and training is up-to-date.

6. Better supply chain visibility

A cloud-based CRM can provide real-time visibility into a manufacturer’s supply chain, helping to improve coordination and communication with suppliers and distributors.

Supply chain management- Cloud-based CRM platforms enable real-time communication with the various stakeholders in the supply chain (suppliers, distributors, logistics partners).

This allows manufacturers to address supply issues as they occur and respond quickly in order to prevent or mitigate disruption to customers.

Manufacturers can also respond quickly to special offers or opportunities that may arise from supply overages further up the chain.

Automated supply order management- A CRM platform can optimize supply order management by automating inventory tracking and order processing.

For example, when an inventory item reaches a specified level, an order can be placed automatically, ensuring critical supplies are always stocked.

The CRM can also capture invoices and order requests automatically, reducing the administrative workload.

7. Simplified order management

CRM can simplify order management workflows and reduce manual data entry, improving the efficiency and accuracy of ordering processes.

Automated customer order management- CRM can automate order capture processing and validation, creating a simple and seamless sales process for customers and employees alike.

Order confirmations and invoices can also be automated, ensuring that customers receive timely and accurate documentation for their orders and have all the necessary information to track their orders and make timely payments.

Order history and tracking- CRM platforms can maintain a comprehensive purchase history for every customer and account.

A sales rep or customer service agent can access this customer data to track the status of orders and provide real-time updates.

This visibility contributes to more accurate and transparent communication and higher customer satisfaction rates by keeping all stakeholders informed and up-to-date.

8. Tighter quality control

CRM integration with QMS (quality management systems) systems can help manufacturers identify and resolve product quality issues quickly and make data-driven decisions about production standards and quality management.

Integration with QMS- Integrating CRM with QMS provides manufacturers with a 360-degree view of product quality and its impacts on customer satisfaction.

This can help manufacturers make cost analysis decisions based on current and relevant data.

Additionally, with CRM automation, if certain quality thresholds are breached, notifications can be sent to relevant teams and stakeholders, ensuring rapid response to potential quality issues.

Customer support collaboration- Within a CRM platform quality control teams can collaborate with customer service teams to log, monitor, and resolve product quality issues and address customer needs.

This collaborative approach helps in prioritizing and addressing quality concerns based on their impact on customer satisfaction and can help quality control teams address emerging issues faster.

9. Data-driven insights

The data capture and analysis capabilities of CRM provide insights that manufacturers can use to assess business process efficacy and improve the customer experience.

Performance analytics- A CRM platform can capture data throughout the entire customer journey — from initial contact to post-purchase interactions.

These Insights can help manufacturers optimize email marketing campaigns, improve sales touchpoints, uncover business process bottlenecks, and identify buying trends and customer needs.

Customer sentiment analytics- CRM systems can capture every customer interaction, providing a valuable source of information for sentiment analysis.

Additionally, automated customer surveys and feedback cadences can be implemented to gather deeper insights.

By leveraging this data, manufacturers can better understand customer perceptions, identify pain points, and address issues that impact customer satisfaction head-on.

10. The continued market growth of CRM in the manufacturing industry

CRM has been growing at an incredible in the last decade and that is a trend that is showing no signs of letting up anytime soon.

According to research by Forbes, the global CRM market was valued at $64.41B in 2022 and will grow to $71B by the end of the end of 2023. By 2030 the CRM market is expected to top $157B.

In the manufacturing sector, CRM is expected to see adoption rates even higher than those experienced more broadly.

That means manufacturers looking to stay ahead of the curve will benefit greatly by adopting a manufacturing CRM solution sooner rather than later.

FreeAgent is the best CRM software for the manufacturing industry

FreeAgent CRM is a modern work management platform that provides top-of-field software tools for companies of all sizes and technical proficiency.

FreeAgent CRM offers a number of direct integrations with popular software vendors pre-installed and ready to roll, as well as thousands of no-code integrations through Zapier.

Plus, FreeAgent CRM offers text messaging and SMS integration, AI-enhanced messaging capabilities, and a fully-featured mobile application.

Additionally, FreeAgent is:

Easy to use- FreeAgent’s modern user interface is quick to learn and easy to use, encouraging teams to work within the platform, driving up adoption and aligning your work processes.

User-configurable- With FreeAgent, the power is in your hands. You can customize and personalize FreeAgent to fit the specific needs of your business and teams without external support.

To see FreeAgent in action, get a demo, and discover for yourself how we are leading the way to a better workday.