In order to keep one step ahead in the modern marketplace, companies must focus on maximising CRM customer engagement.
Discover how an effective Customer Relationship Management (CRM) system can enable your business to measure customer satisfaction in order to boost sales and increase customer loyalty.
Customer satisfaction has become an increasingly important metric. Happy customers are more loyal and therefore more likely to invest more in your products or services. Whereas dissatisfied customers can cause brand damage, customer churn and lose you opportunities to earn more revenue. Furthermore, Gallup Organization has long recognised the correlation between happy employees and contented customers. Whatever your Sales staff do, or how your Customer Service Agents and other customer-facing staff react whenever they are dealing with customer queries or engaging with prospects will have an impact on your business.
That’s why it’s important to put in place the right organisational culture, people, processes, and metrics; as well as the most appropriate means of analysing customer data with the help of an effective Customer Relationship Management (CRM) system.
‘The Ultimate Guide to Measuring Customer Satisfaction’ by Gregori Ciotti, adds that customer satisfaction can also help organisations to improve how they support their customers as well as informing their product and service development.
“A satisfied customer is one who will continue to buy from you, seldom shop around, refer other customers and in general be a superstar advocate for your business”, Ciotti states. The problem is that it’s hard to measure customer satisfaction. He rightly asks: “What should be measuring?” Indeed, what are the key performance indicators that can help you to define whether one customer is satisfied while another one needs more support?
Ciotti recommends author Prof. Scott Smith’s methodology, which considers the fundamental measurements of:
- Perceived quality: This looks at whether customers felt that product or service fulfilled their needs, wants and desires in a way that met their expectations.
- Customer loyalty: Customer loyalty can be measured using the Net Promoter Score (NPS) and Net Promoter Value (NPV). An unsatisfied customer is unlikely to make referrals, and so it’s reasonably accurate (but, for example, customer loyalty can’t simply be based on how long a customer has remained with a particular bank. Sometimes customers just prefer the devil they know, and so more qualitative research is often required to support quantitative metrics such as NPS, NPV, the number of years a customer has been ‘loyal’, ROI, etc.).
- Attributional satisfaction: What feature did the customer like about a product or service? Conversely customers can be asked what they didn’t like, and about what could be improved to increase their levels of satisfaction. Satisfaction can lead to attitudinal loyalty, but while customers may be positive about your products and features, they may not necessarily translate to future sales. Effective use of CRM will take develop their attitudinal loyalty to behavioral loyalty, leading customers to a desired action, thus increasing your sales.
- A customer’s intention to make new and ongoing purchases: A happy customer will in most cases tend to return to buy products from you time and time again, and yet there are exceptions to this rule. Customers will, to a certain extent, forgive organisations for a few minor misdemeanours and so they may continue to purchase from them. While some may not have an option to buy the same kind of product or service from elsewhere. Yet in both cases your goal should be to fulfil their needs and meet their expectations.
Chief Marketing Officers (CMOs) can train their customer-facing staff to ask short and simple questions each time they interact with customers and then record and collate this kind of data in their CRM system. CMOs can then use data insight tools to form a single view of each customer. This analysis can then be used to inform Customer Service Agents and Sales about what interests each customer, their purchase history, any issues that have arisen and so on.
The CRM system’s data analysis would most probably also use some or all of the above metrics to form a complete picture of the value of each customer to the organisation. It enables CMOs to segment each customer according to buying habits, needs, demographics, value to the business, and other insightful variables in order to improve customer satisfaction, customer loyalty and profitability. To achieve this, use CRM to know your customer.
Learn more about using CRM systems to make customer satisfaction the soul of your business by downloading our free eGuide: ‘The Ultimate Guide to: Creating customer centricity with CRM’
Learn how data-driven marketing is not only essential for effective marketing, but also essential for enhanced prospect management and customer engagement.
Data-driven marketing is not new, but it has become an increasingly essential customer engagement and prospect management tool for small and medium-sized enterprises (SMEs).
When SMEs use data insights intelligently by tracking customer behaviour, they gain the ability to become more competitive, more profitable and more efficient in the way they manage their prospects and their existing customers. They can even use data to create new opportunities for their own businesses using effective data analysis to develop new products and services. In turn this can increase sales, customer engagement and loyalty.
Forbes Insights finds that 70% of the organisations involved in its recent survey, and who consider themselves leaders in data-driven marketing, have said they have seen increases in their ability to gain a competitive edge, customer engagement and customer loyalty. “Increased revenues are another bonus…contrast this with organisations that are lagging behind the data-drive trend,…only 24% saw increases in engagement and loyalty”, writes freelance writer Rick Delgado in online customer management magazine CustomerThink.
Data is Queen
Data is therefore the queen to content, which reigns supreme as the king. Yet arguably data leads because the insight and analysis gained by deploying an effective Customer Relationship Management (CRM) system, such as Microsoft Dynamics CRM, can help to create the sales and marketing content needed to promote a product and service appropriately to each customer segment within the CRM database.
Data-driven marketing and CRM make it easier to attract new customers within a particular market and market segment. They create an opportunity to cross-sell and up-sell to existing customers. Yet you can’t just add data and expect results. Improved prospect management and customer engagement begins by following the old adage of people, process and then technology. CRM, for example, fails when this is forgotten.
Data is getting bigger
Data comes from a widening array of sources: smartphones and mobile applications, emails, web and e-commerce sites, social media sites, customer interactions on sales calls and in contact centres. So think about the kinds of data your prospects and customers are using; and about the value that you want to extract from it.
Another key question to answer is about what the data doesn’t tell you. For example, data can tell you why 30% of customers clicked on an email or website link. What it doesn’t inform you about is about why the other 70% didn’t click. Therefore the key to data-driven marketing success is to know when and when not to use your intuition. To support data analysis there still need to be some qualitative analysis in order to more precisely understand the buying behaviour of your prospects and existing customers.
Data boosts retail
Supermarket Tesco was one of initial key proponents of data-driven marketing when it test marketed the Tesco Clubcard in 1994. In 2010 the loyalty card scheme boasted of having 15 million members, and as each member collects points the company was able to gather data on their online or in-store shopping habits. This enabled Tesco to redesign the layout of its stores, to more profitably manage its stock, and it was also able to use the data insight gained from the card to entice customers to buy in larger quantities.
More recently, in 2014, online retail sales rose by 15.8% to £45bn. Advances in data-driven marketing mean that this figure is set to grow with the help of mobile and in-store technology. These retail achievements are attainable in other markets because data-driven marketing demonstrates that it offers a distinct business advantage and a significant return on investment (ROI) no matter where it is put into effect. So even your business can improve its customer engagement, prospect management, sales revenues and profitability too.
Find out more about how you can gain a competitive edge over 70% of the data-driven marketing leaders today: download our eGuide ‘The Ultimate Guide to: Using CRM for data driven marketing success’
By working together to select and implement the right CRM system, and with the adoption of a strategic data-driven marketing strategy, your Chief Marketing Officers (CMOs) and Chief Information Officers (CIOs) will lead your business to success.
With the increasing adoption of cloud computing technologies marketing departments have found ways to circumvent the traditional role played by IT. Yet problems can occur when Marketing takes IT into its own hands. Apart from posing a security threat, the systems deployed without the authorisation of the enterprise’s Chief Information Officer (CIO) may enforce the creation of departmental silos rather than collaboration because they might not integrate well with the organisation’s own IT systems. In other words a Chief Marketing Officer (CMO) and his team may choose to unilaterally deploy technologies that just don’t have a strategic fit with the ambitions of the organisation as a whole. So by working together they can become more secure and effective.
CIOs and CMOs therefore need to come together in order to discuss how they can achieve the desired business outcomes of their company – and this is becoming even more crucial with the growth of today’s data-driven digital marketing environment. The two types of directors should be involved at all levels of discussion about, for example, which Customer Relationship Management (CRM) systems to deploy and whether it should be cloud-based or not. At the same time CIOs and CMOs should recognise the changes in their own roles and responsibilities – particularly given that the CMO’s role is evolving in such a way as to include technology within its remit. They also need to sit down to discuss and understand their different skill sets in order to work better together.
The trouble is that there are going to be some age-old misperceptions to overcome too. IT directors, CIOs, and their IT colleagues have historically been seen as being authoritarian in the way they either permit or restrict the types of applications that anyone can use within a company. IT’s role was to firefight technical issues through offering a helpdesk service, and it was responsible for fixing and preventing security problems that could lead to downtime and lost revenue.
Nowadays these things still apply, but the twist is that CIOs are increasingly becoming responsible for helping the enterprise to use, for example, cloud-based services and technologies that can deliver desired business outcomes such as the ability to deliver new digital applications and services faster than ever before. This can lead to a competitive advantage over the company’s rivals, and this can be achieved when everyone within the firm works collaboratively with each other. CIOs can also enable Marketing to make strategic choices about which technologies it wants to use by helping the CMO to choose technologies that can be integrated with those of the company, that aren’t likely to pose an IT security threat, and which are implemented in a way to deliver business success.
CMOs can work with CIOs to prevent their data-driven marketing campaigns and CRM implementations from becoming one of the failures that are often reported in the media. Reports suggest that up to 70% of CRM projects fail to deliver. Poorly designed workflow processes, poor quality data, and a lack of training or understanding of Customer Relationship Management systems are among the traditional key reasons for this occurrence. The chosen solution might not be the right fit for the organisation too.
So CMOs should involve their CIO counterparts in the technology selection and adoption process to ensure that you can successfully implement your chosen IT system, encourage widespread adoption and while ensuring that its users understand it fully. The value and the potential ROI of the CRM system will then be realised – and particularly if good data management practices are also followed.
Discover how you can deliver a successful CRM project by encouraging CMOs and CIOs to work collaboratively together: read our eGuide, ‘The Ultimate Guide to: Using CRM for data driven marketing success’.
Learn why data-driven marketing is becoming a key tool for SMEs to deliver effective campaigns that profitably engage their customers.
Good quality data is the fuel of a successful data-driven marketing campaign. The collation and analysis of data is just the beginning of the circle of success. It then leads to insight and a better understanding of your customers’ needs. By using the data to get closer to your existing customers you can inspire loyalty, develop new products and services; and what is more you can attract new customers.
“Gartner Says CRM Will Be at the Heart of Digital Initiatives for Years to Come”: this report by the analyst firm says that smartphones, tablets, mobile applications are changing Customer Relationship Management (CRM) even faster than social media.
Citing Forbes magazine, Softwareadvice.com’s Mobile CRM Software UserView article says that 30 percent of sales organisations now issue tablets “as the primary device for salespeople, and bring your own device (BYOD) policies are becoming increasingly common.”
Softwareadvice.com conducted its own survey and found that:
- 82 percent of salespeople who use their smartphones and tablets to access their organisation’s mobile CRM system find that it improves the quality of data they input.
- 50 percent of sales representatives who use both kinds of device to access their CRM system found that it improved their efficiency and productivity.
- 37 percent of those surveyed said that sales content management was regularly used, and 31 percent said they would use it ahead of reviewing and inputting contact information.
Contact centres can also use data to know how best to solve customer queries, and to deliver better customer service. Poor data and business processes, a lack of empathy, and a failure to understand customer needs often leads to lost sales and increases in customer churn.
Data-driven marketing content that doesn’t use good quality data and insight to connect with each customer leads to the same conclusion. Treat your data and customers as part of the same coin. They are as equally important and valuable as each other. Use an effective data collection and management systems to begin to understand your customers, to create new sales opportunities and customer loyalty. Remember that without good quality data you also can’t understand your customers.
Find out how you can reduce customer churn, create new sales, and increase customer loyalty and profitability: Download our eGuide “The Ultimate Guide to: Using CRM for data driven marketing success”.
A 6-part SlideShare presentation on why marketers need to develop data-driven strategies.
From MAD MEN to SAD MEN?
The 60s adman:
witty, urbane, sophisticated.
Don Draper created campaigns on INSTINCT. Acting more on FEELING than THINKING.
He had some SUCCESS.
But far more FAILURES … you never heard about.
TODAY’S Mad Man drives marketing with DATA.
INSTINCTS ARE GOOD.
INSIGHT IS BETTER.
Without DATA, an INSIGHT is just a HUNCH.
Without DATA, a MAD MAN is a SAD MAN.
TODAY’S marketer is POSITIVE ABOUT DATA.
Data gathered from SOCIAL TRENDS, WEB CONTENT…
… and YOUR OWN CRM.
There are many reasons to adopt a marketing strategy based on DATA-DRIVEN INSIGHT.
HERE ARE SIX.
BECAUSE DATA IS EVERYWHERE.
Where does useful data COME FROM?
Chances are it’s ALREADY IN YOUR BUSINESS.
A well-designed CRM programme can COLLECT and ANALYSE…
… serving up INSIGHTS ON A PLATE.
43% of customers use fewer than half the features they have on their CRM
INSIGHTS come EASIER if you use CRM smarter.
BECAUSE EVERYONE IS DOING IT.
Gartner predicts CRM will be a $36bn sector by 2017.
Still think guesstimates and gut instincts are the way to go?
Without DATA, EVEN A GENIUS GETS IT WRONG.
91% of companies with more than 11 people use CRM.
But only 50% OF SUB-10-PERSON companies.
(Is CRM how a sub-10 turns into an SME?)
BECAUSE CONTENT OWNS YOUR CAMPAIGN.
Your brand today is WHATEVER PEOPLE SAY IT IS.
The customer’s impression of you is a collage of snippets, articles, blogs and PDFs and Tweets.
Your campaign is CONTENT.
25% of customers who used Twitter and Facebook to communicate… expected an answer WITHIN ONE HOUR.
Campaigning today isn’t so much REACHING OUT, as POINTING OUT.
Make sure your CRM can WRAP AROUND THE CAMPAIGN.
BECAUSE DATA MAKES IT MEASURABLE.
A Mad Man once said he didn’t know which half of his ad budget worked.
THAT WAS THEN. THIS IS NOW.
Tracking metrics make EVERY CLICK, EVERY OPPORTUNITY measurable.
And every behaviour an INSIGHT.
The average CRM has an ROI of 560%
… when used as a DATA-DRIVEN STRATEGY, not just for campaigns.
BECAUSE RATIONAL DOESN’T MEAN COLD.
Being data-driven doesn’t make your ideas less “emotional”.
Quite the opposite.
Data-driven insights reach DEEP INTO THE HUMAN CONDITION.
They create CUSTOMER ENGAGEMENT.
But to know how people feel, you’ve got to know what people THINK.
Knowing what they think takes DATA.
THE COLDEST, HARDEST LOOK AT DATA DRIVES THE STRONGEST EMOTIONAL ENGAGEMENT WITH CUSTOMERS.
And CRM is the channel that connects.
BECAUSE CRM CONNECTS INSIGHT WITH ACTION.
With those insights in hand, it’s time to COMMUNICATE them…
And CRM is the IDEAL METHOD.
The insights came from there. The communication comes from there.
And you already KNOW the people in there, PERSONALLY.
Data-driven marketing with CRM leads to communications that
SEAR THE SOUL,
with ideas that feel RIGHT, RIGHT, RIGHT.
WE ARE NOT MAD MEN.
WE ARE MAD ABOUT DATA-DRIVEN MARKETING.
AND CRM IS THE SOURCE OF DATA.
Start a conversation with your CRM partner today.
Discover the benefits CRM can bring to your business by downloading our free eGuide: The Ultimate Guide to: Using CRM for data driven marketing success
This infographic brings together three key factors in data-driven marketing.
If you think data driven marketing is just about numbers, then it is time to think again.
Enterprise level companies have been leading the way in data driven marketing for years, but now SMEs of all sizes are now starting to capitalise on the data stored in their CRM systems. Using it to transform their business culture to one of customer-centricity, increase the effectiveness of their marketing campaigns, boost their sales figures and ultimately take their business into the near future and beyond. Learn how you can do the same via this handy infographic.
Continuing our interview series, Redspire MD Billy Lyle and Microsoft's Lucy Brown sat down to discuss how the insurance industry has adapted to the dramatic changes in working life over the last 12 months.
#digitaltransformation #insurance #brokers
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