If a company wants to keep a customer, and not just attract them, launch the CRM marketing direction. Work with the customer base: divide subscribers into segments, analyze buying behavior. The company’s CRM strategy is a communication map and personal offers for each client in email newsletters, push notifications and marketing games. They measure the results of the strategy in two dimensions: customer loyalty and percentages.
Benefits of CRM marketing for companies
CRM marketers manage the customer’s buying behavior: motivating them to move quickly from the “know the brand” stage to the first purchase, from the first purchase to the second, and so on. With the help of personal offers, CRM marketers increase the average purchase price and grow the customer’s life cycle.
The benefits of CRM marketing to an agency client outside of the cloud.
CRM marketing does not have the goal of “selling” something to customers. Marketers work on long-term and mutually beneficial offers: they sell what the customer likes and at the same time is profitable for the company.
Non-cloud CRM strategists consider CLTV, movement by RFM analytics segments, incremental effect, and share of CRM channels in total company revenue as top metrics for measuring CRM marketing effect .
Customer lifetime value, CLTV
This is the customer’s revenue during the time the company interacted with the customer, from the first contact to the customer’s departure. CLTV will show if the costs of attracting and retaining a customer are worth it.
For the segment of the most valuable customers of the base, the growth of this indicator will multiply the profit. Analysts and marketers find customers with the highest CLTV in the database.
If the company creates a separate communication strategy for new customers, CLTV will grow and the company will receive more revenue. A good marketer would draw conclusions from this metric: focus on a valuable segment of customers, for them: separate popups, and checklists.
A forecasting method:
It will allow you to estimate how much revenue the company will receive in the future from a particular segment of the base. For marketers to understand which segment to spend budget on.
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Movement through RFM analysis segments.
This analysis is carried out for the entire database in order to identify segments by three parameters: Actuality – the age of the last purchase, Frequency – how often the customer buys, Monetary – how much money they spend on a purchase .
RFM analysis of the client portfolio of the Out of Cloud agency
The analysis shows how many customers in the database have the highest performance
- They buy more often, more than others, they are marked with the letter A in the diagram.
- This is the most valuable customer segment, they are the ones who bring in the most money.
- Their behavior and buying habits are especially closely monitored by marketers.
- The CRM strategy of the remaining groups is to move from one stage to another: E – D – C – B – A.
- Marketers are developing individual CRM strategies that will help them increase the number of valuable customers by X% ; the result will show a change in the next RFM scan.
- Marketers can calculate the net income of a CRM strategy for a certain period of time, for a month or a year.
- To find out what is the use of mailings, marketing games, promotions and discounts, it will be honest to compare the natural behavior of customers and the subsequent exposure to salespeople.
- When marketers start working with the database, they divide it into two groups: the main (95%) and the experimental (5%). The first group falls under the influence of sellers: they receive personal communications and offers.
- The second group behaves naturally, the company does not keep in touch with them. One group is 19 times larger than the second, so their incomes are compared using a special formula.
The company receives income only from newcomers
For example, if for a month, there are more than 100 newcomers in the database, and each of them bought products for 1000 euros; the ratio of the two groups is 95 and 5%, therefore, in the experimental group, 95 people bought for 95,000 euros, and in the control group, five newcomers brought the company 5,000 euros. Incremental revenue is zero.
CRM marketing in this example does not work well, it would not make sense, but the money was spent on it already. A 2022 Out of Cloud CRM marketing study showed that the market is new to this metric.
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