You’ve just opened your email, and bam! You are sprayed with dozens of marketing emails from brands coaxing you to buy their products and services. The catch? Many of them don’t even come under the umbrella of your interests or likes. Many times, you don’t even read it.
Content generation has boomed so much in recent years that marketers struggle to retain customers – making campaigns an extremely challenging task.
According to a 2013 survey, 74% of customers get annoyed with websites that offer ads and content with nothing in common.
So how do you create marketing campaigns that are relevant and resonates with your customers?
The answer? A CRM system.
What Is a CRM System?
CRM stands for Customer relationship management, an approach to managing communications with both existing and prospective customers.
A CRM software contains the tools to help brands organize, analyze, and track customers’ information to strengthen relationships and create personalized campaigns.
In a study conducted by Nucleus Research, the average ROI is $8.71 for every dollar spent on CRM.
The Five Ways CRM Can Help Your Marketing Team
According to research, CRM is the fastest-growing marketing software used by companies and brands. Let’s dive in to see how CRM software can produce better marketing campaigns.
1. Tools To Complement Marketing Campaigns
According to a study conducted by MarketingSherpa, “Without a Customer Relationship Management (CRM) system, a whopping 79% of all marketing leads are never converted into sales.”
Imagine spending massive time and resources to attract and generate leads but never hitting the required sales quota. With dedicated CRM software, you can do just that.
The various CRM software tools can help you extract vital audience information and analyze them to find potential customers, both in new and existing markets. You can then use it to create loyalty programs to reward and retain customers, thereby supporting business growth.
The plethora of tools at your disposal can also help your business offer better customer service, as your customer relations team will have categorized and relevant information about each of your customers.
According to Cloudswave, using CRM can boost conversion rates by 300%!
2. Customer Segmentation
Segmentation is a compelling strategy in which you divide your customers into smaller bases based on similar characteristics. Once segmented, you can use this information to produce highly efficient and customer-centric marketing campaigns.
CRM streamlines this segmentation process so that you can market your products and services to responsive customers.
Here are some ways CRM software helps segment your customers:
- Improving product and services sales: According to a salesforce report, incorporating CRM into the marketing model can increase sales by 30%. This, when combined with segmentation, can produce excellent results.
- Enhancing customer engagement: Segmenting your customers will provide you with a deeper understanding so that you can connect with them on a deeper level. CRM helps you analyze and predict your customers’ behaviors so that you can create engaging marketing campaigns.
- Examining trends and patterns: A CRM software collects customer data, including purchase history, demographics, and behavior – vital information to create effective marketing campaigns without beating around the bush.
- Determining Customer Lifetime Value: Customer Lifetime Value (CLV) is a crucial metric to predict a customer’s future value. Here, CRM tools can help you segment customers based on their CLV and produce marketing campaigns that suit them.
3. Centralized Data Location
Data is power, and having important customer information at a central hub can immensely improve marketing campaigns. A centralized location helps harvest data that can be used to identify relevant patterns and trends.
This can also help organize information so that it is easy to find, analyze, uncover, and predict insights for an effective campaign – even increasing productivity by as much as 34% (salesforce).
4. Focused Targeting
Consider this: your marketing team has a massive load of customer information that they can work with to create marketing strategies.
Unfortunately, your team is taking up precious time sifting through raw data to figure out potential customers to buy your new product or service.
This is where CRM software comes in.
It can automate mundane tasks and filter out potential and promising customers so that your company can focus its resources on creating marketing strategies that are appealing to these prospective buyers.
According to a recent study, 68% of customers decide to leave a business due to perceived indifference towards them.
Focused targeting is vital to improve marketing efficiency and customer retention, hence building a loyal customer base.
Customer profiling combines multiple sources of information into a single database. This lets you focus your efforts on personalized strategies and receptive customers – by making your consumers the center of the campaign.
In a nutshell, CRM software – by using tools and information for focused targeting – helps you know who your audience is so that you can curate campaigns in a customized way to resonate with your audience.
5. Personalized Marketing Campaigns
In its essence, CRM is a database with information about a customer’s purchase history, contact details, past communications, and behavioral data.
In a nutshell, it is a bridge that tracks the exchange of communication between a business and its clients. This makes knowing what your customer needs easy – thus paving the way for personalized content.
For example, you can personalize email marketing by using “Dear Susan” instead of the generic “Dear customer” – and people usually regard mass, anonymous emails as a scam.
Using the myriad of information present in CRM, you can then wield this knowledge to produce ideas, products, and services that are so tailored that it perfectly suits each prospective customer. This enables marketers to shift their focus from products to customers.
According to a source, loyal customers spend 67% more than new customers.
Moreover, the ROI of a personalized marketing campaign cannot be understated, as highly personalized content will improve response rates and strengthens brand perception.
CRM software chops up huge and messy chunks of data into insightful, segmented data that you can use to personalize marketing campaigns. It can help you anticipate what your customer needs, thus creating a positive brand presence.
Gone are the days of sheer “mass” marketing where companies used the one-size-fits-all method. With the powerful tools at your disposal, you can turn marketing campaigns into profit-making machines.
CRM fits perfectly with other tools you may have at your disposal. There’s Mailchimp, Zoho, and EngageBay.
Are you a business using CRM software to produce tailored marketing campaigns?
Let us know in the comments below.