With more enterprises putting the customer at the center of their marketing strategies, customer relationship marketing remains prominent among organizations that strive to foster customer loyalty and cultivate brand ambassadors. Here’s a look at how you can put customer relationship marketing to work for your company.
Customer relationship marketing (CRM) is a technique based on client relationships and customer loyalty. Using customer data and feedback, companies utilizing this marketing strategy develop long-term relationships with customers and develop laser-focused brand awareness. Customer relationship marketing varies greatly from the traditional transactional marketing approach that focuses on increasing individual sale numbers.
Companies that prioritize customer relationships, on the other hand, strive to create strong customer connections, which may be emotional, to their brand to promote customer loyalty and increase customer lifetime value. They benefit from word-of-mouth promotion and develop brand ambassadors.
Customer relationship marketing builds upon customer experience management and puts improving customer interactions to foster brand loyalty at the core of marketing activities and efforts. There are several ways that companies go about customer relationship marketing, including providing excellent customer service at all times, getting to know individual customers to anticipate their needs, and offering loyalty program perks and rewards for repeat customers. Companies typically turn to the internet and social media to pursue customer relationship marketing initiatives, which means that small businesses also can benefit from it by inviting customers to visit their websites, read and comment on blog posts, and communicate via social media platforms like Twitter and Instagram.
The goal of customer relationship marketing is to build trust with and engage customers to build brand loyalty and reduce customer churn. One of the best strategies for building relationships with customers is focusing on emotion. Brands who excel in CRM use nostalgia in their campaigns because it is one of the most powerful connections consumers can have to a brand, according to BDA CEO Jay Deutsch. That’s why branded merchandising is becoming part of some of the most successful marketing campaigns.
Other strategies in customer relationship marketing include:
When companies implement customer relationship marketing, they make good use of their customer data and identify customers that will be of more value to the company itself. With customer relationship marketing campaigns, companies save time and money by focusing on customers that will not be as costly in terms of maintaining relationships with them; they also make better decisions about which customers have underdeveloped potential.
Another advantage of utilizing customer relationship marketing is that it increases customer satisfaction and communication levels. Customers who have strong relationships with companies interact with them more frequently, which makes it easier to learn more about customers via customer data platforms. These companies also save money by building relationships with existing customers rather than spending to attract new customers.
Other benefits of using a customer relationship marketing strategy include:
For further reading on customer relationship marketing, visit our blog. For your convenience, we have linked to three of our most recent customer relationship marketing posts below:
NGDATA helps brands in data-driven industries, such as financial services, telecom, utilities and hospitality, to drive connected experiences. Our Next Generation Customer Data Platform, Lily™, puts people at the center of every business via Lily’s Customer DNA, which continuously learns from behavior to deliver compelling experiences for companies, such as Belfius Bank, Innogy and Telenet. NGDATA is headquartered in Gent, Belgium and has offices in the United States, Europe and Asia-Pacific.Learn More...