CRM-Techniques and Strategies for Customer Retention
Tune in June 28 and learn how to unlock the power of customer data in our free webinar. Register Now »
The business scenario is in constant evolution with the empowered customer accessing unlimited information through the media and internet. The digital revolution has marked a shift in power from the hands of business heads to the customers are highly aware of the competitive scenario and hence are entitled to freedom of choice amongst their products.
It is essential to maintain a healthy on-going relationship with client. For that, the objective should shift to developing a customer centric framework, which inculcates insights that cater to customer’s needs and requirements. Therefore, the business leaders have to start thinking more on the thought-processes of marketers to boost up the revenue scale. One needs to engage buyers into latest trends in the market to offer maximum benefit and here is where CRM is of great value.
The basic objective of a CRM solution is to improve customer retention. Its secondary objective is to increase customer acquisition at a low cost, without jeopardizing existing customer relations and ensuring the smooth transition of a new customer to a loyal, long-term client.
Here are a few ways in which CRM aid in customer retention:
1. Builds up a comprehensive viewing of “customer journey” map.
Gathering data on customer is essential, as it helps keep tabs on the impacts of the marketing strategy, in regards to consumer interaction. Also, needs and demands of the target audience can be tracked. The raw data is not enough to communicate the experiences of customers.Mapping the customer journey helps in jotting down focal points of customer’s experience: from initial contact(awareness), through the process of engagement (urging the customer to purchase) and into a long-term relationship (post purchase involvement).Customer relationship management tools helps in providing an insight into the touch points of consumer interaction and post-purchase engagement, in collation with data of the journey map. This will help you asses the strengths and weaknesses of your marketing strategy and also provide guidelines to re-engage the customer, if the rate of engagement has been less.
2. Targets customers through tailor-made offers.
Every customer has a purchase/ consumption pattern, through which one can extract the point of interaction suitable to engage for further loyalty. CRM software gathers customer’s media consumption and purchase history to plot what kind of offers will be appealing to each individual and in turn add relevancy, which will keep the brand recognition value high.Identifying ways to convert customer interest into an actual purchase is the main onus here, which can be achieved through providing discounts and offers to add value to the experience. This helps in building a proactive customer relationship, where repeat purchase would be possible due to smart target centric offerings to enhance the value.
3. Helps create Loyalty programs.
Every brand has its share of loyal customers, whose experience urges them to revert back on frequent basis. Information gathered in CRM software can bring out the varied levels of engagement by the customers, revealing which of the accounts are responsible for the most revenue. This information helps you create loyalty programs for those valued customers. This ensures a proactive relationship with these profitable customers, creating a memorable experience for them and also referrals from these loyal customers, to extend target reach. You can create a list of your most profitable customer, through CRM software. After which, you can start to follow up by letting them know about the rewards and incentives, so that they continue to stay as your most profitable customers.
4. Personalizing the interactions.
A relationship is something that is established between people. CRM software helps you see your customer beyond the rotes of revenue.The effects of personalization is of great impact to not only purchase but post-purchase relationship, where it is equally essential to reach out to the customers on a frequent basis, to increase the value of your service. As recent research in the UK found that personalization, user preferences and other relevant information found in CRM software delivers a high impact ROI, with a greater extension in outreach and new target-base covered. This often happens as the optimized experience urges satisfied customers to refer the services on various platform, hence increasing the point of interest in untapped sections.When finalising the information fields for registering a contact, use personal details such as birthday, hometown so onto personalize your outreach. Armed with this information, you can adjust your follow-up strategies accordingly.
5. Helps assess performances
Feedbacks are essential for conceiving and executing a successful marketing campaign. One needs to be aware of the success rate and the shortcomings of his strategy to proceed in making it more effective. There’s no better place to obtain it from than the customers themselves. CRM can be utilized here through dashboards to review service execution and pinpoint areas for improvement. Also, metrics to identify repeated support problems examine the percentage of issues are being resolved in a single call. Use this insight to develop incentive schemes that reward staff for outstanding performance in key metrics.
As an organisation, one is always in search of ways to improve customer service, keeping insights in helm. CRM aids in merging relevant business information from various departments into a single easy–to–access database.CRM monitors the activities around customer engagement, not solely for customer retention itself.