A good CRM programme begins with data. Who are my customers and what do they want? Why did they choose me in the first place? How many of them are active, and continue doing business with me? Why do the others stop?
Often, you will need to research this information. If the company has a database, conducting surveys, focus groups or dipstick telephonic research can help you get an idea. Consider that an Audi Q7 driver is vastly different to an Audi A1 driver, for instance. They both pick the brand for the same reasons, but their motivations behind choosing the products vastly differ.
Data can give you these insights. It can enable a company to create real value for the customer and thereby gain true loyalty. There is little point in running a customer insights survey, looking at the results and saying “that’s interesting” without putting into action any changes suggested by the results. It also means customers are less likely to take part in surveys going forward, and quite rightly so – what’s in it for them? Conversely, if you do action changes, customers will feel increased ownership in the brand and its offering.
The actual database in which you choose to gather and collate data is also crucial. Remember that there are many facets to CRM, and the quality and accessibility of the data will have a major impact on how well these processes run.
When looking at data, it is essential to keep in mind the Pareto principle. The Pareto principle, or 80/20 rule, holds that in many situations approximately 80% of profits are delivered by 20% of customers. Also keep in mind that 20% of customers are responsible for 80% of problems related to service and supply (Koch, 2008).
This means designing solutions with efforts directed at the 20% of customers who generate the most profits. To do this, you should segment customers effectively.
You’ll also want to consider the exact data to collect. While this will depend largely on your business objectives, here are some considerations:
• Information should be commercially relevant.
• Capture additional contact details from the customer at every interaction – on purchases, contracts, negotiations, quotes, conversations and so on.
• Capture any information you send out to the customer.
• Consider anything that adds value to the relationship.
• Note any legal implications around capturing data, particularly web-based behavioral data, as the user’s privacy must always be taken into account.
Often, you will need to research this information. If the company has a database, conducting surveys, focus groups or dipstick telephonic research can help you get an idea. Consider that an Audi Q7 driver is vastly different to an Audi A1 driver, for instance. They both pick the brand for the same reasons, but their motivations behind choosing the products vastly differ.
Data can give you these insights. It can enable a company to create real value for the customer and thereby gain true loyalty. There is little point in running a customer insights survey, looking at the results and saying “that’s interesting” without putting into action any changes suggested by the results. It also means customers are less likely to take part in surveys going forward, and quite rightly so – what’s in it for them? Conversely, if you do action changes, customers will feel increased ownership in the brand and its offering.
The actual database in which you choose to gather and collate data is also crucial. Remember that there are many facets to CRM, and the quality and accessibility of the data will have a major impact on how well these processes run.
When looking at data, it is essential to keep in mind the Pareto principle. The Pareto principle, or 80/20 rule, holds that in many situations approximately 80% of profits are delivered by 20% of customers. Also keep in mind that 20% of customers are responsible for 80% of problems related to service and supply (Koch, 2008).
This means designing solutions with efforts directed at the 20% of customers who generate the most profits. To do this, you should segment customers effectively.
You’ll also want to consider the exact data to collect. While this will depend largely on your business objectives, here are some considerations:
• Information should be commercially relevant.
• Capture additional contact details from the customer at every interaction – on purchases, contracts, negotiations, quotes, conversations and so on.
• Capture any information you send out to the customer.
• Consider anything that adds value to the relationship.
• Note any legal implications around capturing data, particularly web-based behavioral data, as the user’s privacy must always be taken into account.
