“The key is to set realistic customer expectations and then not just meet them, but exceed them – preferably in unexpected and helpful ways.”
Richard Branson, founder of Virgin Group
Customer Relationship Management (CRM) is a critical and often overlooked business strategy for developing customer loyalty and driving long-term success. CRM is more than just during and after-sales service to your customers. It starts at the very beginning of the incorporation of your business values. It also involves how you manage and analyse customer interactions and data throughout the customer lifecycle.
Why Customer Relationship Management?
The primary goal of CRM is to improve customer service relationships, solidify customer retention, and boost sales growth.
CRM systems compile data from a range of different communication channels, including but not limited to a company’s website, telephone, email, live chat, marketing materials and social media. They allow businesses to learn more about their target audiences and how to best cater to their needs.
Ways to Build Customer Loyalty through CRM
1) Personalization
When it comes to CRM, personalisation involves tailoring policies and communications to meet the specific needs and preferences of each customer. This can be done through data collection and thorough analysis. This helps your businesses to create a unique and personalised experience that gets etched in the memory of your customers.
Personalization also helps build stronger emotional connections between the customer and the brand, leading to increased customer satisfaction and loyalty. When customers feel understood and valued, they are more likely to remain loyal and make repeat purchases.
Implementation
- Data Collection: Gather detailed data on customer preferences, purchase history and historical behaviour through CRM systems.
- Segmented Marketing: Use the collected data to segment your customer base and create targeted marketing campaigns.
- Customised Interactions: Tailor your communications, product recommendations and provide offers to individual customers based on their preferences and past interactions.
2) Omnichannel Communication
Omnichannel communication ensures that customers have a seamless and consistent experience across all channels and touchpoints. This approach integrates all customer interactions, whether they occur via phone, email, social media or in-store, into a single, cohesive experience.
Providing a seamless experience across multiple channels increases customer satisfaction and loyalty. Customers expect to interact with brands on their preferred channels and consistency in these interactions strengthens their trust in the brand.
Implementation
- Integrated CRM Platforms: Use CRM platforms that support omni channel communication to manage interactions across different channels.
- Unified Customer View: Create a single view of the customer by integrating data from all touchpoints.
- Consistent Messaging: Ensure that your messaging and branding are consistent across all channels.
3) Proactive Customer Service
Proactive customer service involves anticipating customer needs and addressing potential issues before they become problems. This is why a business that is reactive and not proactive is more like to fail.
Proactive customer service demonstrates that a brand cares about its customers and is committed to providing excellent service. This approach can significantly enhance customer satisfaction and loyalty, as customers appreciate and spread the word when their needs are anticipated and met without having to ask.
Implementation
- Predictive Analytics: Use predictive analytics tools within your CRM system to identify potential issues and opportunities.
- Customer Feedback: Actively seek customer feedback to understand their needs and expectations.
- Automated Alerts: Set up automated alerts to notify customer service teams of potential issues, enabling them to address problems promptly.
4) Loyalty Programs
Loyalty programs are structured marketing strategies designed to encourage customers to continue to shop at or use the services of businesses associated with the program. These programs often offer rewards, discounts, store credits and other incentives to repeat customers.
Loyalty programs can significantly increase customer retention by providing ongoing value and incentives for repeat business. They also embed a sense of exclusivity and appreciation, making customers feel valued and more likely to remain loyal.
Implementation
- Point-Based Systems: Implement a point-based loyalty program where customers earn points for purchases that can be redeemed for rewards.
- Tiered Programs: Create tiered loyalty programs that offer increasing benefits for higher levels of engagement.
- Personalised Rewards: Tailor rewards to individual customer preferences to make the program more appealing.
5) Regular Engagement
Regular engagement involves maintaining consistent and meaningful communication with customers to keep them informed and involved with the brand. This can include email newsletters, social media interactions and personalised messages on birthdays and anniversaries.
Regular engagement keeps the brand top-of-mind for customers and helps build a stronger relationship. It also provides opportunities to gather feedback, promote new products and share valuable content that converts window shoppers into paid customers.
Implementation
- Content Marketing: Develop a content marketing strategy that includes regular blog posts, videos, and social media updates.
- Email Campaigns: Send regular email newsletters with updates, promotions, and personalised content.
- Social Media Interaction: Actively engage with customers on social media by responding to comments, sharing user-generated content, and participating in conversations.
“In today’s hyper-competitive world, the only way to sustain long-term growth is through superior customer experience. CRM is the strategy that enables businesses to understand and respond to their customers better.”
Michael Brenner, CEO of Marketing Insider Group
Effective CRM by Brands Across the Globe
1) Tata CLiQ
Tata CLiQ is a newly launched e-commerce platform by Tata Group that successfully leveraged CRM to elevate customer experience and loyalty.
CRM Strategy
Personalization: Tata CLiQ uses data analytics to understand customer preferences and offer personalised product recommendations.
Omnichannel Communication: They integrate various customer touch points, including mobile app, website, and customer service centres, to provide a seamless shopping experience.
Loyalty Programs: Tata CLiQ’s loyalty program, CLiQ Cash, rewards customers for purchases, encouraging repeat business.
2) Amazon
Amazon is a global leader in e-commerce, renowned for its customer-centric approach through same-day deliveries, easy returns and the biggest catalogue in the world.
CRM Strategy
Personalization: Amazon’s recommendation engine suggests products based on browsing and purchase history.
Omnichannel Communication: Ensures consistent communication across email, app and customer service.
Loyalty Program: Amazon Prime offers benefits like free shipping and exclusive deals, fostering customer loyalty. In India, the ICICI Amazon Pay Credit Card offers flat 5% cashback on all amazon purchases to Prime customers and 3% cashback on all other purchases to further strengthen their grip-hold.
3) Starbucks
What started as a coffee-chain has turned into a status symbol. Just like Apple, Starbucks also uses highly effective CRM to enhance customer engagement and loyalty.
CRM Strategy
Personalization: Uses data from the Starbucks app to personalise offers and recommendations.
Loyalty Program: The Starbucks Rewards program along with the Starbucks card incentivizes repeat purchases with rewards and personalised offers.
Mobile Integration: The Starbucks app integrates payment, rewards and order-ahead features which is now being adapted by competitors such as Pret-a-Manger, Third Wave and others.
