A third of consumers make purchasing decisions based on the level of customer service offered by companies with effective CRM applications.
Recent results from a British consumer survey suggest that retailers must do more than institute reward programs to maintain customer loyalty during a recession. Although the latest generation of customer relationship management software makes it easy for companies to track purchases, research indicates that the overall experience matters more than just the accumulation of points or perks.
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More than half of the business leaders surveyed by The Logic Group and Ipsos MORI intend to focus their resources on retaining existing customers over the next year. With affordable CRM applications available for all sizes of business operations, cultivating repeat business should be easier than ever. However, sales professionals who fail to leverage all of their CRM software's features may find themselves with little more than a complex address book.
Empowering Service Using CRM Software
Swiping bar codes or presenting other personal information at checkout makes it easy for companies to integrate sales statistics into CRM applications. Algorithms can offer instant upsell opportunities at checkout based on purchase history and demographic data, while identifying strong prospects for follow-up marketing campaigns. Yet, about half of consumers responding to the survey had no interest in joining a formal loyalty program.
When surveying customers of banks and retail stores, researchers discovered that more than a third of respondents made purchasing decisions based primarily on customer service. Although coupons and special offers may help swap some buyers, more customers prefer to make decisions about their perceived relationship with a company. To capitalize on those core purchasers, the latest CRM applications focus on:
- Quick identification of repeat customers.
- Follow-up messages that ensure customer satisfaction.
- Invitations to exclusive events and shopping opportunities.
CRM applications that keep track of service appointments and purchasing records can also build loyalty through support and assistance. Reminding customers of routine maintenance is good, but sending a customer a timely birthday card is even better. CRM software that merges a customer's online, offline, and telephone experiences can help companies achieve even higher levels of customer satisfaction.
How CRM Applications Bridge Gaps Between Stores and Data Centers
For many retailers, CRM software success still relies on scanning a shoppers' loyalty card. Tracking relationships at a pizza parlor may require placing orders from the same phone number. An auto service facility may use license plates or VIN numbers to quickly identify customers. Agents at call centers enjoy an advantage compared to their brick and mortar peers, since their screens can display key data gathered from using caller ID and pre-screen information. New CRM tools provide a similar "live assist" for in-person agents, trained to use smaller parcels of data more effectively to build customer loyalty face to face. Asking a follow-up question about a past purchase underscores a retailer's commitment to long term satisfaction.
According to some customer relationship management experts, CRM software is also integrating a new range of tools designed to streamline interactions between marketers and consumers. Customer experience management modules proactively scout customer data for opportunities to improve service. Enterprise feedback management tools merge data from customer surveys with live profile information, so company leaders can enjoy the opportunity to recover relationships. Empowered by higher quality data, marketers can take relationships to a new level of trust that earns both respect and revenue.
Sources
Customer Interaction Solutions
About the AuthorJoe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a bachelor's of science in communications from Ithaca College.
