Customer Relationship Marketing (CRM) is a difficult concept to grasp. You realize it’s critical, but how do you go about doing it?
“None of this was taught to me in B-school.”
I can assist you. I’ve previously established relationship marketing initiatives. In fact, I’ve made quite a few.
When developing a Customer Relationship Marketing (CRM) strategy, there are five things to bear in mind, in my opinion. Each is a separate topic; thus, this article covers them all at a high level so you can see what’s vital and where you should concentrate your efforts.
Principles of Relationship Marketing
As you plan your relationship marketing approach, keep the following five customer relationship marketing principles in mind:
1. Attract the right clients to your business for the correct reasons.
2. The beginning is the most essential period.
3. Reiterate the decision to buy in established relationships. 4. Good consumers want to be rewarded.
5. When the relationship is in jeopardy, the second most critical period is.
Take into account the customer’s point of view.
The customer’s perspective differs from yours. “Now that’s a dazzling flash of the obvious,” you probably think as you read this. It could be; however, the evidence implies that marketers are unaware of the consumer’s perspective. Customers evaluate businesses and marketing communication efforts based on their own interests and requirements, not those of the marketer. Most of the time, they are completely uninterested. Sorry, but this is correct. All of your expensive advertising is, at best, an irritation unless they have entered the purchasing funnel.
What impact will this have on your relationship marketing strategy?
If your advertising is noticed at all, it is more likely to be seen by your current customers than by potential customers. They’ve already agreed to work with you. It may be a small commitment, but it’s more than most prospects have made, so they’re more willing to listen. Use advertising to reaffirm the choice to buy. Discuss what your customers, particularly heavy users, appreciate. In your advertising, don’t offend your customers.
Give your consumers the information they need in the medium they prefer once they’ve entered the buying funnel. This means that the advertising message should not be repeated. They already knew that. Provide concrete reasons for them to choose you above the competition. Remember that it’s doubtful that you’ll be able to meet all of their needs. They engage in selling as opposed to their alternatives.
Also, don’t speak to customers as if you’ve never met before. When a salesman in a plaid jacket comes up at a long-term customer’s door, it sends all the wrong signals. Talk to them as if you know who they are because you should, and they do. Don’t give in to the pressure to sell them right away. It won’t be nearly as effective as treating them like partners in your business.
Customers Aren’t All Created Equal.
When relationship marketing is targeted at Heavy Users, the 20% of customers that create 80% of income, the investment will pay off several times over. They will appreciate your efforts. The remainder, though, is a different story.
“It’s the heavy user who’s the problem.”
So don’t waste your money or their time trying to get them to buy additional fruit juice if they don’t have any children. To put it another way, don’t try to form relationships with every one of your consumers. It will not take place. It also doesn’t have to happen. The relationship marketing technique is effective and will pay off if you can establish an emotional connection with your top consumers that goes beyond the utilitarian benefits of your product.
It takes time to build a customer relationship marketing strategy.
It’s more of a strategy than a tactic. Connection marketing takes time to create and pay off, just like any other relationship. Allow it to mature and adapt to your company’s needs. Make certain you have the highest level of buy-in. While you tweak the plan, you’ll need the CEO or CMO to keep the CFO at arm’s length. The outcomes will appear.
Relationship marketing’s main purpose is to establish a relationship. You smile, but pay heed since it has implications for your strategy’s implementation. There should be a constant flow of communication with your top customers that isn’t focused on selling anything. Do you notice any tremors coming from the CFO’s office?
“Marketing has gone insane, to say the least. Again.”
Customer loyalty is a fundamental goal of relationship marketing. To accomplish so, you must focus on establishing connections by providing value beyond the utilitarian benefits of your products or services through your customer relationship marketing approach. This isn’t something you do with the sale, sell, sell.
This will make your company’s CFO question the value of investing money in customer communication that doesn’t yield a quick return on investment. Don’t lose sight of what you’re doing. To the organization, the relationship is valuable. It is, in fact, extremely valuable. In this age of commodity products, the emotional bond you develop with heavy consumers of your products or services may be your sole line of defense against competitor offerings. Customer Relationship Marketing will reduce attrition; the sucking sound you can hear but can’t see has a huge but difficult-to-measure influence on your bottom line.
A solid relationship marketing plan may and should include selling as well. Simply put, don’t sell on your own. Your selling strategy should be guided by your relationship with the core of your heavy users. Tracking their behavior and interactions with your relationship marketing stream might help you figure out what these clients are interested in. Use your information to focus your sales efforts on consumers who are most interested in what you’re offering and will have the largest influence on your company.
Deliver the appropriate message to the appropriate customer at the appropriate time.
When you do this, the sales message becomes more relevant and is perceived as value-added rather than the company trying to sell its latest shiny object. As a result, execution costs will be cheaper, and conversion rates will be significantly greater. Can you sense the CFO unwinding?
Obviously, this is a significant topic. It has been the subject of books. So, when you design your own Customer Relationship Marketing plan, use these guideposts to inform your thoughts and research. Read more about Avaifc customer care service.