In most businesses across the world, retention is vital. It’s often easier to keep a customer than it is to gain a new one, so companies should always look to keep their existing audience loyal. Whether looking to proactively manage or just monitor customer behaviour, businesses often turn to enterprise resource planning software to assist them.
More specifically, many companies turn to the world’s third largest independent software company, SAP. With a fully open architecture, they can create specific software that meets the exact requirements of a company. This can increase productivity by cutting down on time-consuming admin and help the overall business run more efficiently.
When it comes to customer retention, SAP is widely used and this is thanks to the software specifically designed to address the problem. From information warehousing with SAP BW to human resources tools with SAP HRMS, there’s an application for every part of a business.
One of the biggest benefits of utilising SAP to retain customers and build better relationships is the ability to track customer behaviour. Through this method, companies can see which events are typically leading to customer churn and solve any issues.
SAP Customer Relationship Management (SAP CRM) focuses on retention and analyses data regarding a customer’s history with a business to help improve the relationship between the two.
For example, a bank can filter their customers based on the operating income they bring. From this, they can see a thorough risk analysis of individual customers. With this insight, they can not only take the relevant steps to prevent the loss of their most profitable customers, but also identify which processes within their business need improving.
Alongside this, SAP CRM supports businesses with a variety of loyalty programs, from initial planning to member management. It also makes customer self-service and the processing of member activities simple by integrating all the relevant applications into one easy-to-use management software.
However, it’s not just the CRM that’s helping to boost customer retention. There are a variety of other SAP tools available that give customers more of a reason to keep coming back.
SAP has spent years creating an entire system to help businesses improve their customer retention and SAP S/4HANA is described on the SAP website as:
“SAP S/4HANA is the digital core — the nerve centre — of your entire business. It consolidates internal and external elements into a single, living structure that goes beyond traditional ERP. In other words, it connects all of your processes, provides you with live information and insights, and seamlessly integrates your enterprise with the digital world at large.”
SAP claims that the implementation of S/4HANA can reduce manufacturing errors by 20%, improve order fulfilment by 25% and increase customer satisfaction by 20%. With this in mind, the product is definitely not restricted as an accelerated in-memory database.
The bond between a company and a customer can be fickle at the best of times. One bad experience and even the most loyal shopper can be sent elsewhere. However, with SAP being an ever-evolving ERP, they’re always looking to help strengthen this relationship through SAP Ariba.
Managing a customer relationship is about more than sending invoices, it’s about supplying a service that focuses on efficiency, quality and making lives easier. SAP Ariba assists this by streamlining and integrating the buying process across an entire organisation.
With SAP Ariba able to integrate into the vast majority of systems, it can connect businesses to the world’s largest network of buyers and sellers, the Ariba Network. With the perks of this digital marketplace, new insights can be found to create and manage trusted, lasting connections with partners that suit the business.
The SAP Ariba network may put businesses in front of new customers ready to engage, it also helps scale existing relationships. There’s also the added bonus of increased efficiency to error-free transactions, which will only help boost customer retention.
SAP is one of the better-equipped ERPs, not only does it have dedicated platforms for retention, but the company is consistently investing in its future.
This is evident with the improvements made to SAP’s user experience application Fiori. The new front-end delivers a wide variety of intelligent integration points, significantly reducing the number of tables used throughout finance and logistics. With a simplified UX, businesses can easily collate the data they need to deliver in-depth analysis about the company and its customer base.
The benefits of using SAP are felt across so many industries, but the software itself has 5 major sectors:
- Process Manufacturing
- Discreet Manufacturing
- Financial Institutions
- Consumer Industries
Alongside this, SAP’s popularity stems from the fact that it has a tailor-made solution for almost every industry vertical and micro-vertical, from retail to defence and security. With so many insights available for nearly every industry, adopting SAP can easily increase the profitability and productivity required to help increase customer retention in any business.
There are currently over 12 million users across the world using SAP and with the company planning to move into the mid-market, their already gigantic userbase will only expand. ERPs can bring massive benefits to any business and those that decide not to utilise the unique insights provided by SAP are not leveraging the important customer insights that could give them an advantage over the competition.
SAP applications such as CRM can help turn customers into brand advocates. It also helps to develop loyalty with customers, as any events that may increase the risk of churn can be swiftly dealt with before it happens.