Customer Relationship Marketing (CRM) focusses on developing long term customer engagement and loyalty for brands. It doesn’t happen overnight and takes effort and investment in your team. However, the benefits are too great to ignore; increased revenue, customer retention, low churn rate and the acquisition of new clients through WOM.
Remember the 80:20 rule in sales? 80% of your sales comes from 20% of your customers. So, who should you look after? Correct, that 20%.
Here’s the TML How-To Guide to CRM.
The first point of call should be your brand. Having a strong brand image that clearly represents your business makes it memorable and easy to identify to potential customers. A strong brand can also evoke a sense of trust and professionalism which will lead to attaining a valuable customer relationship.
I cannot emphasise how important it is to instil a culture in your business that is centred around delivering superior customer service. Every correspondence that a member of your team has with a client must be consistent, leave the client feeling listened to, valued, and wanting to share their experience with others. This is where I highly recommend that businesses who have a number of employees invest in customer service training programmes and employee reward schemes to ensure that these standards are being met. It’s the culture of your company and a key ingredient to retaining that 20% loyal client base.
Note: Remember, culture starts at the top, so the business leader must also believe in and practice these values.
It’s important from a CRM perspective not to just react to queries from clients or to try and upsell to them, you must also touch base on a regular basis with valuable information that is relevant to their needs. This can be done via personalised newsletters, blogs, social media or a simple phone call. Be active and personal in your communications.
As well as communicating to your clients on a regular basis, don’t be afraid to reach out to them to ask for customer feedback. I recommend this is done on a 6 month to yearly basis depending on the size and nature of your relationship with the client. Some businesses (mine included) opt to meet with our customers on a regular basis (face to face) to have a chat about our progress. Customers can help in key business decisions, all you have to do is ask.
Reward Schemes/Special Events
We all love surprises, it’s human nature and the world of business is no different. Surprise your clients every now and then with a greeting card at Christmas or a discount for their next purchase or arrange a special gathering for all your top clients. There are all sorts of nice ways to say thank you and to let them know that they truly are valued by the company.
Wondering how you are going to manage all these interactions? Don’t worry. There are a number of different CRM tools available to help you manage and analyse customer interactions throughout their lifecycle. Here’s a list of some of the best software packages available.
I’ll leave you with a quote from Jerry Jao of CMO.com who said that “Increasing customer retention rates by 5% increases profits by 25% to 95%”
Thanks for reading,