What roles does CRM play in customer acquisition and how can we improve it?
Your customer is king. While this is something that you may not realize at first, you must understand the importance of customers shouldn’t be undermined. You may have a great idea, product or service, but if you cannot win the hearts of your potential customers, then you may as well wrap up your business right now.
Often, companies make the error of paying too much attention to the product itself. The truth, however, is that today, everything must be customer-centric, especially in this era when digital media has given so much power to customers that they can make or break a business anytime.
Companies that realize this reality go out of the way to design everything around their customers. How do they do that?
Customer relationship management (CRM) in its simplest definition can be understood as a mixture of strategy, software, and processes that help you build and maintain long term relationships with your customers. Looking at the industry figures, it seems that most of the companies have understood the importance of implementing CRM. CRM software market is one of the biggest markets in the world, and it is expected to reach $80 billion by the end of 2025.
The growth is not surprising. After all, CRM does wonders for your business. Research shows that the average ROI is $8.71 for every dollar spent. There are three things that your CRM can do: Marketing automation, sales automation, and customer service. Hence, it does not only help you maintain loyal customers, but it also helps acquire them.
Here is how your CRM can help you in customer acquisition:
1. Lead generation
Any business process starts with lead generation. 85 percent of the B2B marketers say that lead generation is their most important goal. The right CRM makes your job easier as it helps you capture the information of your potential customers. With a CRM you can create landing pages and webforms that will help you get the data.
Once you have the data, your CRM will help you make sense out of it. You can also create a lead scoring system, whereby you can assign a score to each of the leads based on their potential value to the business. The score will entail your prospects likelihood to buy from you and how much they are willing to spend with you. Once you have prioritized your leads, you can design your sales and marketing efforts accordingly.
2. Lead nurturing
Your job does end at capturing the leads only; you have to nurture them to convert them into sales. Statistics show that nurtured leads are likely to spend 47 percent more than non-nurtured leads. You can automate your marketing program so as soon as you add a lead to your database, CRM will start catering to it.
The best form is perhaps email marketing; this is because of the high return on investment it gives as compared to other forms of communication. According to research, email marketing has an ROI of 3,800%. Yes, you read that right. For every dollar spent on email marketing, you earn $38 as a result. What more a marketer could ask for? Hence, 40% of companies use email automation.
The success of your email marketing campaign, however, will depend upon how well you can craft your emails. Sending emails just for the sake of it won’t do the job. If you want to get results, then make sure that you have an attractive subject line and interesting content. The key to a good email marketing campaign is to tell prospective customers how your product or service can make their lives easier. Also, remember to include a call-to-action button, which will depend upon the objective that you want to achieve.
3. Catch them on social media
One of the most useful characteristics of CRM is perhaps the social feature that allows you to catch your customers on social media platforms. A social CRM can do a lot of jobs for you, including but not limited too engaging with customers on social media, responding to complaints on time or analyzing the trends.
According to Paul Greenberg, an author and leading authority on social CRM, the purpose of social CRM is to “…designed to engage the customer in a collaborative conversation to provide a mutually beneficial value in a trusted and transparent business environment. It’s the company response to the customer’s owning of the relationship.”
Social CRM can help you analyze your customers’ behaviors, their preferences, and demographics so that your sales reps have a better understanding of how to deal with them. The figure below shows how social CRM works as described by Jacob Morgan.
Multiple companies are successfully using CRM to their advantage. KFC is one example that is leveraging CRM in its truest sense. The company rolled out free Wi-fi in its outlets in the UK. A branded landing page asks consumers to sign up to use the service. This information is then used to send customers discounts and promotions. The restaurant chain has also launched a loyalty app. The app gives customers free stamps on the purchase. These stamps add reward points in their accounts. The app also tracks customer location and help them locate the nearest outlet and offers location-specific deals and offers.
A CRM can be an amazing tool for a business, especially for CRM for small business can do wonders. However, its success depends upon how well a company can use it. Hence, before you invest in a CRM, define the end goals that you want to achieve from them. Define your customer lifecycle and then opt for a CRM. Also, keep in mind implementation. Often companies get overly ambitious and add too many features that confuse and intimidate users. Chalk out a user adoption plan with small steps. Search for case studies and try to learn from the mistakes of others.