CRM stands for Customer Relationship Management, but the actual objectives and benefits offered by a software-driven CRM program suggest it should stand for “Contact, Retain, Monetize”.
The following is a look at how your business can increase retention and revenue with successful CRM marketing.
Contact profiles are at the heart of a customer relationship management program. The ability to collect thorough and accurate data, and to build contact profiles, is central to the value of a CRM database. A recent study by Gartner showed that a business can miss out on as much as 25 percent of potential revenue with bad customer data.
Building prospect and customer profiles allows your business to gain a much deeper understanding of the traits and behaviors of ideal customers. By comparing profile data to transaction data, you get an idea of which contacts present the highest revenue potential. Practically, it is too complex for people to manually attempt to compare buyer qualities to purchasing behaviors for hundreds or thousands of people.
Think about a common scene in a romantic comedy movie when two people meet for the first time. Without sharing a phone number or other contact information, this first encounter would fizzle and we would never reach the clichéd happy ending.
Similarly, when a person buys from a company for the first time, the first goal of the business is to capture critical profile data that is vital to the evolution of the relationship. This contact information is used for follow-up communication, targeted promotions, and add-on sales opportunities, which are all necessary to develop of loyalty.
Customers like to buy from companies that understand them and pay attention to their interests. With CRM, marketing, sales, and service teams can collaborate to deliver more personal messages and optimized customer experiences to each type of buyer.
Small business marketing needs to leverage the strength of customer retention to optimize revenue performance. The stronger and more loyal the relationships you have with customers, the more they are willing to spend with your business. Your suggestions and recommendations are much more believable and valued.
As you continue to collect data on particular buyers, you increase your understanding of the types of problems and needs they have. A deeper understanding helps your marketing team identify other solutions that make sense for established customers. Armed with effective communications materials, salespeople are able to call on buyers who trust them to make recommendations for additional solutions.
The idea of investing in small business CRM doesn’t interest some company owners. However, when you simplify the elements of a CRM system to contact, retain and monetize, you get a clearer picture of its worth. Prioritize complete and accurate contact profiles so you can build and retain powerful customer relationships. Then, use your deeper knowledge to target high-profit customers with precise solutions and messages.
Salesgenie offers you access to high-quality contact data through targeted business leads. Start your free trial now to find out for yourself