It is a known fact that customers are the
most valuable asset of every business, and in order to increase customer value it
is important to communicate with customers to create transparency between the
company and its customers. It is believed that more than half of the annual
revenue of newly-established companies comes from repeat buyers. Head of
companies invest a great deal of time, effort and resources into customer
retention than acquisition. In a
business world, retention of existing customers and expanding the scope of
business is vital. With increase of customers it is getting hard to organize
contacts with its current and prospective customers on a traditional way and
that’s when companies’ sales managers decide to implement Customer Relationship
Management (CRM) software in order to facilitate the process and benefit from
software allows sales employees to store and organize information about
customers and their interactions and provide a cross-functional access to the
stored information within the company.
purpose of CRM is helping companies employ technologies and human resources to learn
more about customers behaviour and their values.
CRM is a
helpful tool for increasing revenues by producing products and providing
services that customers want, cross-selling products more effectively, offering
better customer service, identifying and targeting prospective customers,
attracting new and retaining existing customers, creating and implementing
marketing campaigns with clear goals and objectives, making call centres more
efficient, forming individualized relationships with customers and providing
the highest level of customer service to the most profitable customers, helping
salesforce close deals faster as well as simplifying marketing and sales
Once your business cares for its existing customers, energies should be
diverted to discovering new customers and expanding the market. The more
knowledge you possess about your customers, the easier it is to identify new
visions and increase the customer base.
It’s in a human nature to strive for change and from time to time
customers might feel a need in change and in this sense technology can
facilitate the process of information acquisition about customers and ensure
that everyone in an organisation can use this information.
In short, CRM is about getting to know your customers, i.e. who they
are, what they want, what they like and dislike, which marketing campaigns are
attracting them and how they react. If there’s no drawbacks, then you continue selling
to them, providing your services to them and you win their loyalty and trust.
Then the main concern comes to mind – how to retain these loyal
customers and which tools to use. CRM software can’t solve customer retention
problem on its own, but it can tackle you with the necessary tools to help you
manage customer involvement activities.
foremost, the company should study the reasons why customers keep buying from
them and how to increase their interest in their products and services. To this
end, the only solution to the problem will be evaluating customer behaviour,
analysing their buying habits through extensive data and information storage in order to build long-term customer relationships.
Customer retention means preventing customers from leaving and
considering competitors. To prevent customers from leaving sales representatives
should take an in-depth approach to customer relationship and capture every signal
customers may display, and then create a list of the most valuable customers
along with the list of all sales conducted within the last 6 months using CRM
system. It helps identify customers who haven’t purchased from you in 6 months
After identifying those customers, it is prudent to follow up with the
most valuable customers and understand why they’ve stopped buying from you and
look for ways to prevent them from leaving.
As it was already mentioned, CRM software enables you to keep track of
your customers’ buying history that can help you position the most appealing
offer for every customer in a right manner and increase its relevancy, which
will preserve your brand on your customers’ minds. For example, if a customer
showed an interest in your product or service, but haven’t purchased anything,
then it would be logical to offer them special discounts or some vale added
features to your products.
CRM database disclose the most profitable accounts, which can allow you
to plan your time respectively and allot resources where they will bring the
most revenue. It can also let you reward those customers to increase their
loyalty and develop strategies for up-selling/cross-selling.
Some sales representative may use personal notes and other subjectively
relevant information about the customer while registering a contact in order to
personalize follow-up strategies and make it easy for further outreach.
And finally, CRM software allows you to plan follow-up calls or emails
or delegate follow-ups to your team members to help you keep track of your
appointments and tasks.
CRM software has proven to be the most useful tool for retaining
customers by skilfully organizing activities around their needs and preferences
to keep them happy and satisfied.
Another very helpful tool in customer
retention is a Big Data. Big Data is a loyalty program created for collection of the
vast and valuable information from customer interactions, social media, purchase
and browsing history, etc.
program allows businesses to track information regarding purchased products, websites
visited and bought through as well as other considered networks, and even
currencies customers used to buy. All these information enables businesses to
offer their customers the most attractive deals and promotions, and make them
companies integrate Big Data into CRM to even more increase customer engagement,
satisfaction and subsequently generate higher profits. The integration brings
some benefits such as simplifying decision-making process, better customer
understanding, allowing to link CRM with social
media to better interact with customers, predicting behavioural modelling by
enabling analytics to focus on segmented demographics. It also allows to benchmark,
in other words to track how well the company is operating compared to competitors
and in accordance with its strategy.
its benefits, Big Date also has some hindrances and difficulties. First of all,
it is a huge and constant flow of information which should be properly analysed
and it may lead to some kind of strategic changes within the company. Second of
all, failure to interpret the information and consequently to choose the wrong
it is important to understand that no matter how helpful any technology might
seem and how much data you have, the way you use it, interpret it to provide
substantial benefits and elaborate on a further strategy is the most
fundamental action for the company. Data can be taken from different sources
and analysed to enable cost and time reductions, new product developments,
optimization of offerings, decision making and etc. Skilful data usage can help
determine sources of failure, create smart and attractive promotional messages,
learn customer buying behaviour and habits, figure out future risks and more
devices are also of huge importance when it comes to customer retention. With
globalization that is taking place in the world people get more hectic
lifestyles and they move all the time. People get busy, involve in many
projects and multitask, work remotely, travel a lot and emailing even on the
plane. To this end customers may wish to use their mobile devices to stay
update in order not to miss any important information. Businesses must consider
this and provide all the information and its updates by the means of mobile
phones. This will require from the company to acquire and employ new
applications. By doing so, companies can exceed their customers’ expectations
by providing convenience.
Disney can be a good example of a company who
makes important information available via mobile. Disney created “My
Disney Experience” which synchronizes
customer details and offers suggestions and information tailored to your family
and individual interests. Application enables customers to plan their
vacation, make reservations, book tickets, track timetables of their much-loved
entertainment shows, buy pictures and etc. Information availability that this
application provides make it easier for customers to plan their daily
activities and entertain themselves while vacationing.
And last but not least is the
employment of new technologies to put customer service channels like
Twitter, Facebook, Instagram, email and phone number into a centralized system
that syncs email addresses with related phone numbers and social networks
enables companies to track customers details regardless the platform they
contact you from and share this information across departments, so they can
also see customers’ past conversations and purchases. It also helps to keep
internal experiences and transactions smooth and clear. For instance, it allows
your customers to avoid unnecessary calls with numerous departments within a
company as well as miscommunication by bringing the departments together to
save customers time and give them reliable overall experience.
To sum up all aforementioned, we can conclude
that technologies from CRM, mobile devices, emails to social networks can be of
significant importance for companies in their customer retention efforts.
However, the most vital criteria here is how a company interprets and analyses
all the collected information to project better results, adjust their strategy
accordingly, gain and retain valuable customers and offer them best experience possible.