Make customer data easily useable.
With smart CRM (customer relationship management) we transfer customer data into profitable marketing automation. CRM systems or CRM tools store and structure data that we collect at every touch point with the consumer. Using business intelligence we create insights to create automated marketing processes. Email marketing as well as newsletter management are common channels. However, depending on the industry, contact points such as customer service, call centers and sms can be relevant, too.
Many companies still highly underestimate how effective customer relationship management can boost both sales as well as increase profit. Though with smart processes in place and using email marketing and newsletters (among other channels), you hardly have to invest big amounts of media budget into CRM. Existing clients are at the end of the lower funnel and already know your product. Having a good tracking in place as well as your CRM tool setup well-done is the key to create insights and achieve success with CRM.
CRM mainly focuses on two primary goals. First, to increase revenue and profit of existing clients. Secondly, to increase loyalty and reduce churn rates. To grow revenue can be accomplished by either improve the AOV (average order value), e.g. by cross-selling other products or product categories, or increase the shopping frequency (by reducing the time between orders). Reducing churn rates or increasing customer loyalty and avoid loosing clients to the competition is the other key focus of CRM.
Success of CRM can be measured live, precisely and is a great opporunity to improve performance through constant A/B testing. For each automation process individual and detailed KPIs are defined on which the performance of this process is being measured. Sending out an automated cart abandonment email or coupon newsletter to profitable clients who have not had placed an ordere in a while, we record if and what users open or click an email, and to which step they proceed in the checkout. Some general KPIs of CRM are e.g. SOW (share-of-wallet) or SOS (share-of-spend). SOW describes how much of a defined budget for a product category a consumer spends on one specific brand or retailer. As an example, if a customer spends 30€ out of 50€ they spend on cosmetic products per month on average on one brand, the share-of-wallet will be 60%.