The term CRM sounds like one of those complicated business terminologies that’ll take pages and pages of reading to understand, but it’s a little simpler than one would think.
The acronym CRM stands for Customer relationship management – to put it as simply as possible, CRM is a way for businesses to manage their leads (potential customers) and their existing customers.
CRMs build strong customer bonds
“The success rate of selling to an existing customer is between 60 and 70 per cent. The success rate of selling to a new customer is just five to 20 per cent.” – Marketing Metrics
It’s a strategy that puts a microscope on the relationship between the customer and the business; it works to create a strong bond between the two.
CRMs utilise advanced technologies to organise, automate and integrate the marketing, sales and customer service components of your business. The technology makes it easy to keep track of customer traffic, activity and global trends.
Zoho, for example, provides businesses with a CRM (CRM Plus) platform that simplifies this seemingly ‘big machine’ of a concept all on one interface. The platform allows everyone on your team to build customer relationships through access to all the data needed for success.
CRM the ultimate word of mouth tool
The end goal of having a CRM system in your business is to maintain high levels of customer retention. Healthy and constant customer relationships are very core to a successful and growing business.
Think of it like a flow-on effect: CRM systems help companies initially get and effectively manage leads. Those ‘well taken care of leads’ then turn into paying customers, who ideally will turn into repeat, loyal customers. Loyal customers trust your brand and naturally end up becoming enthusiast advocates for you.
A properly implemented CRM system is like a well-oiled machine with the intention of having your customers singing your praises from the rooftops.
The Zoho CRM plus does precisely that; it journeys customers from leads into your business advocates. After all, word of mouth is the best form of marketing.
Here are two tips to help build strong customer retention:
Personalise your direct marketing emails. The sweetest sound to your customer’s ears is the sound of their name – it gets their attention. Research shows personalised emails are 760 per cent more likely to be opened than a generic email.
Engage existing customers who have become inactive. There is no bigger opportunity than a customer that has already purchased from you. All the hard work has been done. Keep an eye for those who show a decline in transactions and reach out to them with an offer to lure them back to the fold.