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Guide to Developing Profitable Customer Relationships

Build and Deepen Customer Relationships

Your customers are the lifeblood of your business. And to stay competitive in the market, it is important to build customer relationships that increase customer loyalty and drive business. Build a customer engagement strategy with Customer Relationship Management (CRM) tools that capture customers’ information and helps you better connect with them.

It is important to create a plan to optimize your customer engagement strategy. Learn how to navigate the complex customer journey and boost your bottom line with The Guide To Developing Profitable Customer Relationships.

Contents

Step One:

Set Goals and Expectations

A simple Google search about customer relationship data could put you in a frenzy. But the trick is to set simple, focused, and importantly measurable goals. Focus on these three goals: since deploying CRM tools how has customer retention been impacted, how much revenue are returning customers generating for your business, and how has this impacted your operational costs. It is important to understand that the most powerful goals follow the SMART goal setting method. Your goals should be:

  • Specific
  • Measurable
  • Attainable
  • Relevant
  • Time Bound

Metrics Examples:

  • Number of new customers
  • Number of return customers
  • Overall and monthly, quarterly, etc. return customer revenue
  • Average transaction size of return customers versus new customers
  • Purchasing frequency of return customers
  • Customer lifetime value
  • Percentage of first-time customers who become repeat customers

Document your goals and move on to step two.

Step Two:

Identify Customers

CRM gives an average of $8.71 for every $1 spent.
Existing Businesses
  • As brand loyalty is more competitive than ever it is important to increase lifetime customer value within your already loyal customers.
  • Do you have customers that used to be regulars then disappeared? Re-engage with your inactive customers and remind them why they used to be customers to begin with.
  • An important target is customers that have purchased once from your business. Be sure to capture their information at the point of purchase and turn a new customer into a return customer.

New Businesses

  • It is important to create brand ambassadors through your loyal customer base because they will be critical in attaining new customers and widening your customer base.

Step Three:

Gathering and Segmenting Meaningful Data

Identify what customer data to capture; this data should be driven by your business goals.

KEY INFORMATION TO COLLECT:

  • First and last name
  • Email
  • Phone number
  • Zip code
  • Purchase history

ADDITIONAL INFORMATION TO COLLECT:

  • Birthdate
  • Company name
  • Shipping and billing address
  • Photo

CREATING CUSTOMER GROUPS

Once you have created a customer profile with this information, you can build out larger customer groups that segment your customer base. For example, you can create a customer group based on of an age demographic, say Millennials. You can easily offer discounts, reward programs, and personalized marketing to a whole segment of Millennials.

Step Four:

Educate Your Team

82% of consumers are spending more with companies that invested in customer experience

Train your team on your customer relationship management tools. Spend time reviewing what the tools track, how to prompt the tool, and how to read and understand the data. Be sure to train your team on how to personalize your offerings based off of the tracked customer data.

Step Five:

Personalized Marketing With CRM

It costs five times as much to attract a new customer than to keep an existing one

Use your CRM tools to personalize your marketing and reach customers wherever they are. One of the most valuable benefits of CRM is to build on your existing marketing strategies.

DRIVE CUSTOMER ENGAGEMENT

  • Create and target customer segments and then drive engagement with a well-executed email marketing program that leverages your CRM data. Automatically sync your customer data into MailChimp, Constant Contact, GetResponse, AWeber, or Campaign Monitor.
  • Reach your customers on mobile. By collecting customers’ phone numbers, you can deploy text message marketing.
  • Integrate CRM into your rewards program to help identify what drives your customers to spend more or make more frequent purchases.
  • Set automations for all actions.
  • Consolidate your marketing messages while fine-tuning them to reach specific segments of your existing customer base.

Step Six:

Track and Evaluate

Track the results of your business’ investment in CRM technology. Analyze the metrics set out in Step One and detail the successes and where you need to remediate. Monthly and year over year evaluation is important to keep you on track to achieving your goals.

Keep track with a chart to clearly measure your goals and achieved numbers.

EXAMPLE:

Goal Actual – January Actual – February Actual – March
Increase repeat customers by 15% 10% 16% 21%
Achieve $3000 in repeat customer revenue $1700 $2100 $3500

If you are having trouble meeting your numbers, be sure that you are making the most of your CRM tool. Connect with your CRM vendor to ensure that you have optimized your customer engagement strategy across all channels and that you are collecting the necessary data to boost your bottom line.

FINAL THOUGHTS

With so much out there competing for your customers’ attention, it’s important to develop an understanding of who they are, what their shopping habits are, and what excites them. That’s why today’s businesses large and small should be deploying CRM.

TECHNICAL SETUP RESOURCES

Revel University CRM Videos

Revel CRM Setup Guide

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