CRM focuses business attention on the customer.
What do customers really want and how should we communicate with an engaged audience?
CRM can provide some of the answers.
It achieves this by drawing on the data stored in customer records and digital interactions (profile data, transactional data , communications data, social media interactions etc) held on a database or owned spaces. It this data that guide the insight of subsequent marketing activity, rather than the nature of the product/brand related information.
So the focus is the relationship between costumer and business interactions. In other words, CRM involves gaining insight and the actions consumers’ perform in the buying process. It also includes all the things in the marketing environment – social, mobile, email, website, etc – that influence consumer behaviour.
The overall aim of CRM strategies is to design, implement and control a plan to influence customer exchanges to achieve business objectives and incremental growth.
Increase life-time value
CRM is important in marketing because achieving marketing objectives depends on knowing and influencing consumers – make the most existing knowledge to inform future actions.
Customer data is the heart of all CRM activity
Data about known behaviours is captured and manipulated to provide insight of the best prospects and customers to receive a particular communications - i.e. higher value customers are identified and treated with an optimised communications treatment.
The aim is to gain insight to offer services/products, in which they are known to have an interest and the focus of the communication generally moves from “interruption” to “invitation”, as communications are targeted only those that are likely to receive them positively.
CRM is also known by a focus on retention
CRM focus is about “closing” communication gap; building a “dialogue” with customers and using data to refine the nature of the marketing offer to keep customers loyal. The more loyal customers are, the less likely they are to churn. So, CRM is an approach that treat customers as individuals and defines them, not only by their individual characteristics, but also by how they have interacted in the past.
The key is to identify nuggets of insight that could improve on-going communications. In short, data about historical interactions is integrated into the decision making process and used to ensure all customers receive a marketing mix tailored to their own requirements.
So what are the benefits?
CRM enables clear opportunities to link “cause and effect” making it easier to calculate marketing ROI. Also, makes it possible for marketing professionals to control timing of what they do.
The 4 Pillars of CRM
How should you thinkTowards positive relationships and use data to refine marketing communications - one-to-one dialogue.
Your CRM framework
Why should embrace customer relationships?
Types of CRM analysis Internal information analysis - understanding the brands' strengths and weaknesses
Customer targeting - selecting the best customers for our clients
Segmentation is the most used technique
4 distinct groups or segments insights
Targeting the second most used tactic
4 additional segments insights:
So, are you really serious about building a successful business. Basically, all you have to do is make the decision to move forward and take care of your customer.
Ivan Fernandes, Founder and Managing Director at Digital Business Partners