CRM Strategy – An overview…

Developing a CRM Strategy is the first step to creating an effective CRM solution for your small business. Defining the CRM system isn’t hard if you follow some simple steps. It starts with the questions below.

Many companies are surprised to find that their CRM strategy does not begin with “What’s the best CRM?” and then selecting some CRM software. It takes more than that!

In developing your CRM strategy, it helps to ask yourself:

1. What do you want your CRM system to do?
2. What are the goals you want to achieve with a CRM solution?
3. What objectives will help you reach those goals?

Your answers will help create the CRM strategy that works best for your company.

As CRM Consultants, we are obligated to begin any conversation about CRM strategy with an agreement on the definition of what Customer Relationship Management is.

We can not stress this one point enough:

CRM is NOT software that magically transforms your company
into a great customer focused organization!  

Now that we are clear there, what is CRM really?

A Brief Definition of CRM

Contact Relationship Management can be defined, broadly as:
a 360-degree, customer-centric view which covers the entire business cycle. CRM involves improved and increased interaction between a company and its contacts, including intra-company contacts.

Not only must departments such as Sales, Marketing, Accounting, Customer Service/Support, and Manufacturing or Fulfillment within the company learn to share information and communicate more effectively, but every point of contact with the customer must be enhanced.    (read “What is CRM” to learn more)

It must all be done from the customer’s perspective, and everything must add some value for them. This customer focused small business strategy is what differentiates you from the large impersonal corporations. Helping your customer retention rates and building better customer loyalty.

CRM Strategies need this primary consideration -

You would love a single “one size fits everything” strategy that can encompass everything your company does.    Not going to happen!

There are many ways (channels) and departments your customers will use to interact with you. So, you will need to create multiple strategies to achieve success. There will probably be many sub-strategies in every channel or department as well.

This is where crm for small business begins, or really for that matter any business.

The best starting point for creating a CRM strategy is asking yourself the following questions:

1. What is our customer retention rate?
2. Why do we lose customers?
3. Why do we win new customers business?
4. What are our costs for acquiring a new customer?
5. What is the cost of losing a customer, in revenue and profit, in the next year for our company?
6. How much profit does our company make from existing customer –vs- new customers?
   

When you have the answers to these questions, you are ready to begin thinking about the options, strategies, and directions you need to take. This is the beginning of your CRM strategy.

Sounds easy right?       So get headed in the right direction now by finding these answers.

There are more questions that need answers too, but this is a good start.

You need a Customer Relationship Management Strategy

An effective CRM strategy has at its core the understanding that you can't successfully be all things to all customers. It's critical to develop a CRM strategy for your business based on:

• intimate knowledge of your customers
• who your most valuable customers are 
• their demonstrated and anticipated needs and preferences 
• what drives their satisfaction 
• what impacts their purchasing decisions and
• what improves the relationship

This kind of a strategy can be leveraged as the foundation for developing cost-effective programs and tactics that ensure your efforts are focused and your return on investment maximized. You need this before you can begin discussing any crm implementation project.

A Small Business Marketing Strategy that attracts the right attention

Now that you have a basic customer profile, know what there needs and preferences are, and what drives them to choose you; your marketing efforts can be more targeted. Laser like focus of marketing efforts get the best results.

Use the information you have gained to create the right message for the right target and deliver it at the right time. Your success rate will increase and draw similar customer profiles to choose you over your competition.

This does not mean a “one size fits all” marketing strategy where you will spray and pray.

It means that you have several profiles (one for each customer type that matches where they are in the buying cycle) and a message crafted just for them. You will also need to tailor each to the delivery vehicle (marketing medium) that works best for that profile.

A Customer Service Strategy that is customer focused

It does not matter whether you have a 400 agent call center, 30 sales associates “working the floor” or 1 person answering the phone when it rings. All of them are servicing your customers. How are they doing?

When your customer hangs up the phone, or leaves your store, do they fell like “I was just treated like a King/Queen.” Thinking to themselves that your company values their business and worthy of receiving their money. Have you ever asked them?

If you have not asked them, you will never know for sure.

I can tell you this for sure: If they love your customer service, they will tell a few people. If they don’t like it, they will tell everybody they know. It has been reported many times that a satisfied customer will tell 3-5 people, an unhappy one will tell 15-20. How many are your customers talking to?

Create a customer service strategy that focuses on providing the best service possible. Create it to be the best from your customer’s perspective, not yours. Tailor it to the channel they will use to interact with your company because they will use many.

If you do this, your customers will reward you with continued business and become some of the best marketing and advertising you will ever get. More personal referrals and recommendations to their network of contacts; the holy grail of marketing efforts.
Without a good customer service strategy, well……

Even your Internet Marketing Strategy is part of CRM

Want to know what drives website visitors with your email marketing strategy?
Then include those activities into your CRM system as well. How else can you have a complete CRM solution?

The same is true for your ecommerce marketing strategy. When you include these items into the CRM strategy, you get more opportunities to gather a truer 360 degree view of your customers. We all know that more and more activity is done online today. Don’t miss this important area in your overall small business strategy.

CRM Strategy Summary:

Successful companies today realize they need a CRM strategy to remain competitive.

Every customer you have, or hope to attract, has more options to purchase from then ever before. You need a systematic method to ensure you stay in their hearts and minds when purchasing decisions are made.

Operating by “gut feel” and assumptions no longer work, never really did actually. You are competing with every company in the marketplace. Ensure you stay competitive by having a complete small business strategy that includes CRM, Marketing, and Customer Service  in your business.

Or….

Your competitors will get a chance to steal your customer.

Other Visitors also viewed the following:

What is CRM?
Hiring the Right CRM Consultant
Creating A Contact Relationship Management Strategy
Customer Service Management  

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