Dipesh Tiwari, Business Head
In the current scenario where most businesses are conducted online and digitally, access to customer data is of utmost importance. However, it is not a difficult thing to procure relevant customer data and almost every company has their means of obtaining it. The main skill lies in using that customer data in the best possible way and convert it into actionable business. This is where most companies struggle.
This is where a Customer Relationship Management (CRM) database or a CRM software is essential. CRM makes the most appropriate use of the data available and discovers valuable insights about customers, their target markets as well as how they respond. It then transforms those insights into actionable and successful business strategies. A careful study of the CRM database can uncover hidden facts about customers and help to identify new avenues of opportunities for growth of business. This blog talks about the ways in which CRM database can be used to uncover consumer secrets. They are summarized as follows:
1) CRM helps in Personalization
Every customer is different with varying tastes in purchasing habits. They are also different in the type of communication they respond to. In spite of differences, there is one thing common to most customers – they prefer to be treated as individuals and want their shopping experiences to be more relevant as per their preferences. Studies indicate that more than 80% of customers say personalization plays a significant role in their buying decisions. A robust CRM system helps in storing personalized information, which goes beyond names and email address, into recording interactions and habits. This information can be used to make suggestions to customers, provide them with relevant information as well as help in developing a personalized communication strategy for individual customers, which in turn boosts the image of the company in the eyes of the customer.
2) CRM helps in Identifying Top Customers
In terms of generating profits, all customers are not equal. Some are extremely beneficial to the company while others may just end up wasting time. The Pareto Principle states that 80% of profits are generated by 20% of the customers. This essentially means that businesses should focus more on that 20%. A CRM software provides analytical tools that help in identifying the top customers as well as the ones that are not so important. This information helps businesses to manage their workflow better and also utilize their resources more efficiently, which leads to higher customer retention.
3) CRM helps in Closing more Deals
To get an idea of whether or not business sales strategies are actually working, CRM is extremely helpful. CRM system logs every action and every document involved in a sale. It identifies the tactics that worked in closing a deal and also the ones that did not have any significant impact on customers. Using CRM businesses can pursue the successful strategies in future and discard the unsuccessful ones, saving time and costs.
4) CRM helps in Targeted Upselling
Upselling is a way of persuading customers to buy better and bigger. But this has to be done tactfully lest the customers get annoyed or irritated with constant bombardment of product offers that do not actually interest them. To achieve the best possible results, one needs to anticipate the customers’ interests and requirements and offer them the chance to enhance their purchasing experience. This can be accomplished by using CRM data, which brings to light hidden facts about customer behaviour and activity. It provides a 360 degree profile of the customer, which can be analyzed for customized targeting.
5) CRM helps in Customer Retention
CRM not only provides data and information about existing customers but also those customers who no longer do business with the company. Businesses can study and compare the data between loyal and broken customer relationships and get important information that helps them to understand which approach works and which does not. In other words, CRM can reveal the truth of customer engagement. CRM data helps in recognizing behavioral patterns and uncovering insights that can be utilized for customer retention. These insights also help businesses to resolve customer issues much quicker.
These points highlight the power of customer experience and the need for talent Customer Insights experts, who have the capability to grow businesses with effective CRM.