If your favourite shoe brand sends you an email with a discount coupon, how excited would you be to buy from them again? But, if upon clicking through, you realize that the coupon applies only to bright pink stilettos that as a businesswoman you neither need nor like, would your excitement be the same? Or, would your betrayed expectations lead to disappointment, only to be followed up by frustration?
As a business-savvy person, you’d quickly understand that you’ve been on a receiving end of an email marketing campaign gone awry, while as a customer, you’d actually start to consider buying your shoes from somebody else. The question you’d be facing would be a simple one – to churn, or not to churn?
Whether they are business-savvy or not, today’s customers expect for their needs, wishes, preferences, and pain points to be recognized and respected by the companies they’ve been loyal to. For those who know, CRM advertising is the easiest, yet the most powerful way of doing that.
What Is CRM Advertising?
In order to understand how CRM advertising works and why it is so beneficial, one must first know the basics of customer relationship management. The term applies to both set of strategies and set of tools, among which CRM software is absolutely essential.
By definition, CRM refers to “practices, strategies and technologies that companies use to manage and analyse customer interactions and data throughout the customer lifecycle, with the goal of improving relationships with customers, assisting in customer retention and driving sales growth”.
Thus, CRM serves as a centralized hub of information, in which customer data is stored and analysed for an important purpose – to provide insight into purchasing behaviour of individual customers, and therefore help companies develop personalized experiences at each consecutive touch point.
But, modern CRM solutions go beyond that. Along with customer relationship management features, they offer capabilities for marketing automation too, be they social media- or email-oriented.
That way, CRM advertising draws actionable information from an abundant pool of customer data that these systems are, and makes strategic decisions based upon purchasing behaviour, needs and pain points of individual customers in order to create personalized and highly targeted campaigns.
Retention Is the New Acquisition
CRM advertising is a powerful way of reaching out to audiences, even though its primary goal isexisting customers. According to Anastasia Roumelioti, the Head of Marketing behind the fashion brand Hawes & Curtis, “it costs three times less to bring back a current customer than to acquire a new one”. Not only is customer retention less expensive, but it is also easier and way more effective.
The question is what makes the retention possible? What factor is central here? A recent survey by Customer Thermometer has officially confirmed that customers love companies who show they care. In fact, all of the top 5 reasons they gave for feeling a connection with a brand are to do with caring.
This finally takes us back to our initial scenario – if you were offered a pair of pink stilettos that had nothing to do with your history of purchase, you would be right to doubt the brand’s eagerness to retain you as a customer. Their offer might be great, but an apparent mismatch in product type would suggest that they don’t particularly care about you as an individual with distinct needs.
How Can CRM Advertising Help?
CRM advertising provides three things. First, it allows to retarget existing customers who haven’t made a purchase for a while. Second, it enables to reward repeating buyers for their loyalty with personalized special offers. And third, it gives ability to generate leads and acquire new customers.
With this technique in place, a company knows exactly how to custom-tailor their offer to customers’ individual preferences. The history of purchase is already stored within the system, along with other interactions with the brand’s website or customer service.CRM does this by connecting its extensive customer database with marketing channels of your choice.
In terms of customer acquisition, CRM advertising works the other way around too. When potential customers are targeted and captured with Facebook ads, for instance, the social media’s forms can provide you with fresh customer data needed for further acquisition.
Until recently, CRM advertising was a clever way to build a retention strategy and drive sales. As of late, this technique has grown into a mandatory requirement for all businesses who are looking to stay competitive. Bpm’online is currently the best available system, so check their page on https://www.bpmonline.com/advertising for further info on how to attract, capture, and retain.