CRM Technology: Turn Customers Into Lifetime Fans
Nowadays, companies around the world start acknowledging and appreciating the importance of having a solid base of loyal customers more and more frequently. Yet, the majority of businesses still rely greatly on new customer acquisition for revenue growth. While it is true, that acquisition will always stay an important part of every organization’s development and expansion, client retention should be made a priority in marketing and sales efforts. The issue with this is that many companies don’t quite fathom how to focus retention efforts and what tools to leverage.
One of the answers to the issue of maintaining lifetime client loyalty is exceptional customer service. Customer experience is already one of the major determinants when choosing a brand to do business with, and pretty soon it is predicted to outweigh even such essential factors as product and price. Fast technology development enables businesses to transform the way they reach, and interact with clients. Therefore, in this article we have decided to dwell upon the topic of building a customer-centric strategy and look into a few practical recommendations on how to go about it.
Understanding the Value of Lifetime Customers
First of all, it is important to understand that cultivating an enduring, deep-rooted customer connection, based on the first-rate experience, is beneficial not only for the brand’s reputation, but also for its long-term profitability, sales and new customer acquisition. Statistic shows, that retaining customers is much more cost-effective than acquiring the new ones. Moreover, most of the consumers are ready to pay more for a better quality service.
All this highlights the importance of calculating Customer Lifetime Value and categorizing the clients accordingly. Roughly defined, CLV is a projected revenue that a customer will generate during their lifetime. Using this KPI on a regular basis can help to determine the most valuable customers for your business, as well as optimize the acquisition spending for maximum value rather than minimum cost.
Depending on the estimated lifetime value, customers should be segmented into different groups and addressed accordingly. Such an approach contributes to the more personalized, better targeted service and allows companies to focus on those clients, who bring the most revenue.
The Importance of Personalization
The hottest trend in current customer service strategies is personalization. Ideally, a truly personalized communication between the company and its customers can be achieved only through a two-way connection, based on trust and honesty, where the clients provide information about themselves on the understanding that it will be used appropriately.
As for the most technical aspects of the technique, it requires the capability to store, process and analyze the constant flow of customer information, as well as access it in real time whenever needed. Such a 360-degree view provides a deeper level of understanding of client needs and is an important step on the road to creating customers for life.
All in all, personalization calls for a dynamic mix of traditional and new business practices. While essentially based on trust and company’s credibility, in modern world it also requires the proper tools for analyzing customer data and producing meaningful insights into their behaviour. Among such tools are Customer Relationship Management systems.
Improving Customer Experience with CRM
Customer Relationship Management or CRM is utilized to help maintain the company’s interactions with leads, prospects and existing customers. It aims to increase the employee productivity, as well as improve client satisfaction and retention. The greatest advantage of implementing a CRM is that it can provide a comprehensive view of every individual customer and help monitor their previous transactions. A few ways in which CRM can be useful for improving the customer experience are:
- Assistance in finding new customers and prospects and then engaging with them. in addition to that, social CRM can provide an additional boost to the business by leveraging the social media.
- Tracking the client history and identifying loyal customers to better target various special offers and rewards.
- Accelerating customer queries resolution by helping to sort them out and forward them to the appropriate department.
Evidently, a properly implemented CRM can be of great aid in effectively resolving customer issues and building a lasting relationship with the clients. However, it may happen that the platform you are currently using fails to fulfill your expectations. One of the solutions to this problem is a seamless CRM migration with the help of an automated Trujay service.
Go ahead and give the service a test drive by setting up a free demo migration.