With the development of technology, our life has become rapidly replenished with new concepts. Today there are so many concepts that there is hardly a person who knows at least half of them. We will try our best to explain what is CRM marketing and how it can help you in your business.
What is CRM Marketing
CRM marketing is not some complicated program or a system solution. It’s not even a technology which aimes to standardize sales processes and simplifying business processes.
This is a business concept based on a systematic approach aimed at customer orientation.
CRM is a Customer Relationship Management system.
It involves collecting customer data, analyzing it and working with potential buyers, which leads to increased sales.
CRM is basically an approach that allows organizations to collect data about their customers, analyze it, and extract the necessary information. It can be such information as “men 18-45 years old”, “women 25-50 years old who run their business”, “customers who have already worked with our company” etc.
As a result, companies use this information to increase their sales by working with customers correctly.
The CRM marketing strategy is based on unique information about current users and leads, accumulated and analyzed in the system. As the result of this work you get personalized offers that allow you to customize products to meet the needs of each individual customer.
CRM marketing is working with potential buyers based on information about them.
You have already realized that CRM is aimed at solving such marketing tasks as engagement, informing and sales.
Now let’s figure out how this system works.
CRM Marketing: How It Works
No doubt the main task is to motivate the customer to make a purchase, expand the list of items to order, and so on. Here are a few steps to achieve these goals:
- The CRM system collects data about clients based on incoming calls or special forms filled out directly on the site.
- The received data is segmented according to certain parameters.
- Scripts are written automatically for different segments. Yet, messages for them are written manually.
- The scripts are launched*.
- Feedback is enabled.
*Depending on which method of interaction with the audience you choose (email, social network messengers, SMS mailing lists), one of the following scenarios applies:
- manually (a manager calls clients using a prepared script);
- automatically (using additional software).
This method of operation allows companies to:
- Highlight trends in online behavior. Marketing automation allows you to track user activity on the site and identify their interests. At the same time this information makes sales much more efficient.
- Weed out useless leads. The symbiosis of marketing and CRM processes allows you to lead potential customers along a profitable path, filtering out potential customers who have little or no interest in the commercial offer. This automated screening process allows you to work with potential clients as effectively as possible and not waste time.
- Clearly formulate the strategy. Pretty obviously, sales professionals use the information they collect to develop a strategy that guarantees a successful deal.
- Retention the customer. With data coming through various marketing channels, it is easier for sales professionals to retain customers and take measures to increase their loyalty.
Benefits of CRM
The main advantages are that the CRM system helps to solve the following tasks:
- Accounting of the potential client’s data. Attracting new customers requires significant financial expenses, so it is important to properly organize a tracking system for each request. Automation allows you to capture the flow of customers and structure information about each of them in the appropriate database, so that the effort and money spent bring the maximum effect.
- Monitoring the work. Thanks to the integration of the CRM system and other marketing services, each employee can track their progress, determine priorities, and quickly recognize difficulties that hinder the achievement of business goals.
- Activity analysis. CRM marketing products will open access to a full-fledged database, which will allow you to analyze performance indicators, as well as more accurately predict and plan further steps.
Costs of CRM
But so as any system, CRM marketing also has its drawbacks. Here are some of them:
- The result is not immediately, but gradually visible. CRM marketing is just a tool that affects sales growth only some time after its implementation. Consequently, sometimes the company’s profit growth is not noticeable at all.
- A complex procedure for adapting to the platform. Most marketers consider this fact one of the main problems that hinder the successful implementation of CRM marketing. In theory, automation should make it easier for company employees to record and process information. However, in practice, this is only possible if you choose the right CRM system and conduct the necessary training. Otherwise, marketers will need a lot of time and effort to master the technology. Or they will only know it superficially and will not be able to use all the opportunities to the full.
- High cost. The costs here are not limited only to funds for its purchase and integration. Part of the cost should be spent on system support of the platform and communication. In addition, the company will have to spend money on training employees working in the field of CRM marketing and, highly likely, on expanding the staff.
Today, all these disadvantages significantly limit the spread of the CRM system. However, this system has already shown its effectiveness and efficiency, so it is likely that it will develop and spread.
Do You Need CRM Marketing?
All things considered, CRM Marketing is perfect for you if:
- You have a lot of customers or consumers, which practically excludes personal work with them through managers;
- Your client’s financial value justifies personal communications. The cost of collecting data and interacting with each individual consumer should be recouped by the benefits it generates.
- You can collect information about these clients, including contact information.
So now the decision is up to you!
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