Customer Management using Tally PRIME

Importance of Customer Management

Effective customer management is essential for the success of any business. It helps to identify and resolve issues or problems. build and maintain strong relationships with customers, customer loyalty and satisfaction. Effective customer management results positive word-of-mouth marketing and referrals, for new business. Finally, good customer management improves the overall efficiency and profitability of a business by identifying new opportunities.

Customer management features in a small computer system – Basic Features

A Customer Management system should offer the following basic features:

  • Contact Database: A central repository for storing customer contact information such as name, phone number, email and postal address.
  • Customer segmentation: The ability to group customers into different categories or segments for Important characteristics, such as location, products, preferences, patterns,
  • Customer profiles: Detailed profiles for each customer, including purchase history, preferences, and Important memorandum / notes..
  • Communication tools: Features such as easy email, phone, messages, live chat and complete record of such communication for instant reference, to facilitate effective communication with customers, from within the system.
  • Order tracking: The ability to track orders, delivery, shipments, through instant updates of transactions.
  • Returns and exchanges: A system for processing returns, exchanges, refunds, products, replacements , etc.
  • Feedback and reviews: A system for collecting and managing customer feedback and reviews, respond to and address customer concerns.

Sales Accounting

Sales accounting refers to the process of tracking and recording financial transactions related to the sale of goods or services. In accounting software, key features of sales accounting may include:

customer information, including contact details and purchasing history

  • Invoice and receipt generation, including Point of sales.
  • Accesses through multiple local and remote locations and devices.
  • Computation of Tax on Sales, through multiple tax rates
  • multiple payment methods, including cash, credit card, and electronic transfers
  • Customer account tracking and management
  • Product and service Inventory tracking
  • generate Sales and Customer related detailed, summary and Analysis reports,

Overall, sales accounting in accounting software helps businesses track and manage their financial transactions related to sales.

Tally PRIME is simply an accounting software. it keeps historical records of sales transactions taken place.  It maintains complete and comprehensive Accounting records and provides Accounting  reports, to main Sales & Customer Accounts, for Financial and Inventory Accounting.

However, Tally does not provide features for Pre Order stage, how to explore potential new customers, identify, contact and follow up to acquire new customers and get new business. Tally does not help in business promotion, sales and business growth. Tally does not offer Lead Management, cannot suggest how to acquire new customers, explore and launch new products, enter new territories or in Customer Relationship Management (CRM)

Customer Relationship Management

 An ERP system, normally provides Customer Relationship Management (CRM), for new customer acquisition, sales promotion and customer retention. Through these features, CRM system, Prospective Customer for Lead Management and its different details and action chain to manage relationship and Dealings, to convert a Prospective Customer into customer. There is no feature of Customer Relation Management (CRM) in Tally for sales and business growth.

Customer Behavior Prediction and Analysis

An ERP system also gives an indication or suggestion of Customer Behavior, helping management predict customer behaviour, for closer dealings with the customer,  creating deeper customer relationship, and gaining long term business benefits.

The system predicts customer sales trend, seasonal and periodical fluctuations  in sales volume, Product and Price differentiation, sales Promotion & Discount schemes,  low margin bulk sales, high margin trendy items, etc. Such areas are not covered are not covered by Tally

Accounts Receivables Management & Control

To manage Customers accounts, exhaustive and extensive reports of Accounts Receivables, detailed and summarised Outstanding Report, Age Analysis, Reminders, etc. are available in Tally.  However, Tally provides limited or no features for customer’s ranking or classification for payment pattern & regularity, average delay period, frequency of extension of Payment Due Date, payment commitments, payment disputes, delivery issues, returns patters, credit limit and credit appraisal. in which discount, third or sales promotion method he is interested in, no such indication or suggestion of Customer Behavior is available from Tally.

  • Instant creation, delivery of paper & digital invoices to customers.
  • Setting clear payment terms and communication to customers.
  • Follow up on overdue payments regularly.
  • Charging of Interest for delayed realisation.
  • Cash discounts for early payment.
  • Monitor old dues, resolve payment and other issues with customer and get the dues cleared.
  • Tracking, follow up reminder through customer linked phone, messages, chats, emails, from within the system
  • Communication trails from within the system.
  • Deployment and management of third-party collections agency.
  • Track customers’ financial health to review credit policy to  mitigate customer credit risk