We are introducing the basics of customer relationship management that can take your business to the next level
When we meet clients, we get a lot of useful information, but we can’t always use this to our advantage. Small details get lost in the flow of routine daily tasks, and our company can lose serious revenue. How can we use this information effectively and turn it into profit?
Customer Relationship Management, known as CRM, is a great tool to give our customers everything they want. What does this imposing name mean? How can it jump-start your revenue growth? We will answer these questions in our article.
CRM is putting the customer-centric mindset into practice. It aims to get to know people on a deeper level and build more effective communication. A better relationship with customers means bigger profits in the long run. Every customer wants a particular product or service tailored to their needs – even when it comes to mass-produced products. At first, it may seem a bit counterintuitive to make a mass-produced product personalized, but it is still possible. If we know our customers’ mindset, we can recommend items that are sure to please them.
To do this, we need to realize two very crucial things:
- We need to know what is important to our customers.
- We must make good use of this knowledge.
CRM is an information management system in which we collect different aspects of customer data. Simply put, it is a well-aggregated data set of our customers. For this passive system to be of value to our business, we need a complex mindset. It will allow us to analyze the behavior of our previous customers and give us a clearer picture of the values that are important to them.
How is a good CRM structured?
- The first and most important thing is to maintain and organize the data about our customers in a database.
- Compile reports. Analyze the available data and use the results to form a pattern of purchasing habits.
- Contact customers in a targeted way. We can achieve outstanding results once we successfully determine who we should target with a given offer.
What does CRM look like in practice?
For example, we want to increase the sale of a certain product. The first question is: to whom are we trying to sell this product? If we have customer data, we can select people who have previously purchased this product. Now the main point: we are trying to find something in common in these customers.
This common feature can be their age, place of residence, average income, or they can even be related to another product. Once we have found the common denominator, we use it to determine the target audience for the product. With this, we can reach potential customers, which will be reflected in our sales later.
It is important to evaluate the results after contacting the clients. It will be valuable feedback to see if the direction we set was good. In each case, there must be an objective, measurable method that, when applied successfully, can lead to better and better results.
With the help of a well-functioning system, we can collect information not only about our existing customers but also about our interested, potential customers. Using a reliable database, it is very easy to identify what has piqued people’s interest. Most processes can be automated with the help of CRM systems to save time.
The system allows us to select certain customers based on our criteria and send a message to this narrower circle. With CRM, we can easily personalize emails, as it is easy to insert customer data into messages. For example, we can use the client’s first name, the date they last purchased from us, or even the exact name of the last product they bought. The possibilities are endless. The more unique information we have about our customers, the more creative things we can accomplish. We can only enjoy the advantage of the customer database if we use it!
CRM can help with
- retaining an existing customer base.
- selling a new product or service to existing customers. This will strengthen customer relationships and brand loyalty.
- planning new marketing campaigns.
- product development.
- personalizing automated messages and newsletters.
- making customer service more efficient and faster.
- recognizing returning customers. It makes customers feel good if you remember them and highlight information in the conversation that is important to them.
Satisfied customers will recommend us. This is the best advertisement for our company and it will result in new sales. It can be very useful for both small and large companies. CRM can be the key to a small company’s growth. Each time we get in touch with customers, we can gather a lot of information.
It is impossible to remember hundreds of customers’ individual information. CRM can record these for us, organized in just the right way. A lot of companies send messages to their customers during the holidays or send coupons on birthdays. It’s a gesture that may not evolve into sales, but it adds a personal touch.
What’s the purpose of reaching out?
- Increasing customer satisfaction and loyalty.
- Gaining new customers.
- Collecting opinions, suggestions, and recommendations. For example, feedback from your existing customers can mean a lot before launching a new product. It helps to know what’s important to them.
We should collect, analyze and use the information available about our customers. With a well-designed and utilized CRM system, we can make customer communication more personal, which will increase customer satisfaction and sales in the long run.