It's All About Customer Relationship Management (CRM)
Customers are the lifeblood of any business; longevity relies on CRM as the means for improving overall customer retention, lifecycle and lifetime value. But with rising customer needs, businesses can’t rely on assumptions of what a customer wants – yet so many do. Let’s take a deep dive into CRM – why it’s important for your business, and how we have your CRM recruitment needs covered.
What is CRM?
It’s the business practices of giving existing and potential customers (what they want, and learning about their needs and behaviours to develop stronger relationships, change their behaviour and drive repeat purchases through their lifestyle.
The information a lead provides, for instance when they make a purchase, will then go into a CRM database. The sales or acquisition marketing team receives this information, then follows up the lead and (hopefully) converts them into a repeat customer.
CRM Pipeline – Essential
The CRM pipeline is essential to building strong, loyal relationships with existing customers and potential leads, and the sales / acquisition marketing team is what powers up the pipeline. Keeping strong relationships with existing customers and growing a business is vital.
We will focus on the practice of CRM as a digital marketer as opposed to technical side of CRM. This would cover the use of CRM software like SalesForce for example. Some will be looking at analysis of lifetime value of each customer, diversification opportunities, loyalty programs, reward incentives, triggered email software and behaviour based emails or texts.
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Why is CRM so important for modern business?
Firstly, increasing profitability. Building stronger relationships with existing customers is crucial for increasing profitability and with good reason- because it’s more cost effective to retain customers than finding new ones.
It can cost companies up to five times as much to attract a new customer than to keep an existing one. Around 70% of companies believe that it’s cheaper to retain a customer than acquire a new one. Existing customers are more likely to try new products than new customers, and spend up to 31% more compared with new customers.
Increasing customer retention rates by as little as 5% can dramatically increase profits from anywhere between 25% and 95%. But despite these promising figures, the stats do show that 44% of companies have greater focus on customer acquisition, compared with just 18% of those more focused on retention. A healthy balance (around 40%) have trained an equal focus on both customer acquisition and retention.
Nevertheless, the data clearly shows the advantages of using CRM for retaining long-term customers to increase profitability. For smaller, leaner companies, it’s a vital cost-effective strategy for growth. In 2017, 99% of new UK businesses were small to medium-sized.
CRM Recruitment Issues
Within the world of CRM recruitment, candidates for CRM jobs must demonstrate the right skills to expand customer retention. In the long term, retaining more customers means there’s less need to spend money on marketing to find new customers. Retention and building customer relationships is can reduce the pressure for big marketing budgets, and boost the bottom line.
Customer retention has become a key facet in all CRM jobs as it’s easier and more cost effective to retain than gain new customers.
What’s the recruiting advantage of analysing customer behaviours and catering to their needs?
The more customers spend, the bigger the ‘share of wallet’ (SOW) a company keeps, and a higher percentage of the customer’s wallet.
The CRM Recruiter’s Perspective
From the recruiter’s side, SOW is invaluable in CRM recruitment as it helps determine a company’s internal position within the market. It’s not to be confused with calculating market share.
CRM For Increased Wallet Share
Many companies regard CRM as a means for increasing share of wallet as a profitable strategy, simply because it’s a more cost-effective and efficient way of boosting revenue. Also, increasing wallet share is far cheaper than the costs of expanding market share. In terms of calculating wallet share, CRM helps companies identify their most valuable and profitable customers, which are then targeted specifically for retention.
Effective CRM Recruitment Is Vital
This means CRM recruitment is vital for this line of revenue strategy, particularly as a wide array of skills are used for customer retention: email marketing, content marketing, social media, referral marketing, SEO, display and mobile advertising, digital video advertising, affiliate marketing and paid search.
How CRM can break down silos
CRM software will automatically input customer data at the click of a button, instead of teams manually entering data on a computer. This means teams can work faster and more efficiently, enabling the sales team to focus more on generating and following up leads, or selling products or services to existing customers based on the data.
Productivity is optimised as customer data is gathered and easily accessible in one centralised CRM database, meaning all teams across marketing, sales and administration are all interconnected to the same data.
Have businesses recognized the importance of using CRM?
The short answer is: no.
The longer answer is that CRM forms the backbone of your customer care, but research suggests that many companies still have a long way to go with both their levels of customer service or even with adopting a CRM system.
Do You Follow Up Leads?
Less than 10% of companies follow up their web leads within an hour, or even at all. Only about 20% of companies follow up their web leads within a day. With most (over 80%) of businesses operating without an integrated CRM and email marketing system, it’s no wonder many businesses are simply far too slow to follow up web leads.
The door is open for the right candidates to step in and turn an ailing business around; over 70% of businesses don’t have a CRM system in place, and roughly a third don’t track their web activity.
It’s woefully clear that many businesses haven’t yet got to grips with the advantages of using CRM. This makes CRM recruitment vital, particularly for CRM jobs in marketing and sales acting as important cogs in the CRM wheel for efficient customer service.
How a CRM job candidate can argue for change
For candidates stepping into companies who need all the expertise they can get, it clear that there’ll be some resistance to doing things differently, no matter how much the opposite is expressed. So it’s up to you to sell the benefits of an effective CRM system.
Effective CRM will:
- Enable CRM leads to react promptly, giving sales teams the means to follow up leads in real time as soon as they come in. It’ll offer reminders for teams to deal promptly with any customer questions, comments, queries and needs, nurturing customer relationships.
- Fundamentally increase sales through better timing by also anticipating and reacting to those customer needs based on historic data – thereby encouraging targeted marketing to meet those customer needs.
- Boost reputation and profitability, by giving a personalised approach to customer service that nurtures stronger relationships and increases the value of customers, and enhances customer satisfaction and retention.
For example, a well-known online retailer offers a personalised homepage for customers, replete with recommendations based on the user’s history. This strategy, of giving a personalised and tailored experience, aims to build customer loyalty and increase satisfaction and retention.
The Long and the Short of CRM Recruitment
The long and short of it is that it’s all about the customer! Making a positive impact on customer service through CRM more than meets ROI for the companies who opted to implement it.
Planning To Fail?
Indeed, failing to implement CRM in this day and age is planning to fail!
Customer Retention Through CRM
And the survey says… CRM is winning. Almost half of surveyed companies saw significant improvements in customer retention after implementing CRM; the same number noted significant improvements in customer satisfaction, sales revenue, and in upselling and cross-selling of products and services.
Top CRM Features
Of the CRM features that were mostly used, most find it useful for calendar management, email marketing, and marketing automation. The most popular CRM software used by respondents were Salesforce, followed by Microsoft Dynamics.
Relationship With Sales
Interestingly, the sales department is where the CRM is mostly implemented and accessed, with the majority of respondents saying CRM is for their sales team.
This would make sense as CRM can track leads that can generate a sale.
The bottom line aim of course is the increasing of profitability.
Almost 50% of users said that CRM is for their marketing department, and about 45% of users said CRM was for customer service.
This data clearly shows that CRM has been successful for the businesses that have adopted it. For many businesses the way to measure the success of CRM is through RFM (Recency, Frequency, Monetary). RFM is a marketing tool used to calculate and segment groups of customers based on their transaction history – such as how often they buy and how much they bought.
Companies often use analytical data from website traffic and purchase history of customers to determine RFM, such as how often customers visit the website, when they last visited and how much they spend on purchases. CRM is influenced by RFM because determining this can help identify customers most likely to respond to sales deals, promotions or future personalized customer service.
Where can CRM and CRM recruitment go next?
There’s plenty of food for thought about CRM and the future of CRM recruitment, particularly as the future for it is looking smart. Artificial intelligence (AI) is set to send CRM to the next level by powering up its systems; social CRM will also be the next big thing for building stronger customer relationships,.
It’s an exciting time for businesses to consider these benefits and join the CRM revolution!