A CRM is a discipline encompassing a set of technologies that improves, tracks, and automates processes that manage customer relationships with respect to sales, marketing, support, and customer service.
It is every brand’s goal to nurture long-term relationships with satisfied customers, as well as retain current ones. However, this process is predicated on a business’s ability to track and manage customer data.
Having a CRM platform will enable and streamline the tracking process. It utilizes a set of discrete software to map out a client’s interaction with a brand and help the business develop engaging experiences to extend customer relationships.
Therefore, a CRM’s primary objective is to track, manage, analyze customer interactions, and streamline processes to enhance satisfaction and loyalty. The resulting data-driven insights are then used to boost sales and customer service. Other top CRM goals include:
- Expanding a brand’s customer base.
- Improving business efficiency.
- Building long-term client relationships.
What is the Customer Life Cycle?
A Customer Life Cycle (CLC) is a marketing terminology that refers to the stages a customer goes through when interacting with a business, from becoming aware of a product and making a first purchase to becoming a long-term customer.
This framework monitors customer behavior to inform ideal marketing strategies that can target and retain them. Successful customer service teams understand the true value of having a customer stick around for a while.
Top companies want more than closing a one-time business deal. Instead, they strive to establish mutually beneficial customer relationships and achieve higher customer lifetime value.
A CLC gives customer service professionals an overview into a customer’s journey via the sales funnel. Insights into the lifecycle can then be leveraged to acquire leads and deliver engaging customer experiences at every stage.
The process involves five key stages as discussed below:
Reaching a potential customer
This is the stage where a potential customer searches for a product. It is referred to as the “Reach” stage because it is the perfect opportunity for a brand to reach out to a customer while they’re deliberating and comparing product offerings from competing brands.
A successful reach campaign will manifest once a customer reaches out to you asking for more details or a definitive price.
Customer acquisition
In the Acquisition stage, a customer may use different channels to contact your public-facing interfaces. These include a website or a direct phone call. Here, your customer service team will need to respond to customer inquiries, and offer the best product/service to satisfy their needs.
If a prospect gets to you via the website, it is crucial for them to find informative content to help them make informed purchasing decisions.
Conversion
Once a prospect is well informed and delighted about your brand, it is time to make a purchase. At this stage, they have officially converted into a customer. As a business, aim to provide value and build a solid relationship.
Customer retention
Business is more than just a one-time deal. The hard work begins once a customer makes their first purchase. In this stage, the brand works to retain the customer and have them hooked for the long-term.
One place to start is to check in with them to inquire whether or not they have enjoyed or found the product/service helpful. Use customer service surveys to highlight areas of improvements and identify what you can do better.
Customer loyalty
A customer that makes repeat purchases is a valuable asset to the company, and this is where loyalty comes in. Brand loyalty is of utmost importance, but it doesn’t come out of the blue: it is nurtured.
Loyalty is informed by the aforementioned four stages. For instance, a customer who’s had exceptional experience with your brand might write a colorful product review and guide a future prospect getting into the reach stage.
5 steps in the CRM process?
CRM is a business strategy with plenty of benefits to the bottom line. This process requires a collaborative effort between sales, marketing, and support teams. So how does a CRM turn new leads into loyal customers?
To achieve the goal of CRM, knowledge of your customers’ life cycle is key. Through the CLC stages (discussed above), every brand employee will play a crucial role in helping prospective leads progress through the sales pipeline.
Here is a closer look at the five steps involved in the CRM process:
Generate brand awareness
From the ground up, a business has to acquire new customers to guarantee growth. First things first, you need to identify your target audience and create campaigns and marketing materials to reach that segment of demographic. This is where a CRM platform becomes a valuable tool.
It will offer a wealth of information by tracking and monitoring leads. Such a database will offer insights into ideal marketing strategies to use as well as the best leads to follow-up on.
Acquire leads
Once you know who your target audience is, your marketing teams will use a CRM to target leads. These can range from sending out automated signups via the website, or initiate live talk with prospective leads.
Convert leads into customers
A CRM platform with integrated tools such as lead scoring can help your marketing and sales teams sieve between interested leads and those that are ready to convert to purchasing customers.
Provide superior customer service
The work doesn’t stop after a lead has closed. The role of the CRM goes beyond the closure of a deal. Here, quality customer service and continual relationship and communication can help retain the customer. Consider automated emails asking for reviews and referrals.
Drive upsells
A satisfied customer is likely to make repeat purchases from the same enterprise. This mutual relationship can be leveraged to upsell similar but more expensive products to the customer.
Conclusion
More companies are adopting different CRM practices due to its far-reaching benefits to a business’s bottom line. A CRM will streamline and automate your business processes and free more time to focus on hands-on aspects of your day-to-day operations.
Furthermore, it promises reduced sales cycles, improved communication and response time, better leads tracking, integrated customer feedback, enhanced satisfaction and customer loyalty.