CRM stands for Customer Relationship Management. In a broad sense, CRM software is a program that allows you to manage your relationships with your customers. But it also has a business intelligence function. It is data-driven software that allows you to segment customers into target groups, so that in the course of the marketing or acquisition process, you can target specific customer profiles. Customers like to be approached as individuals, even when it comes to marketing and sales communication. But for companies with a large customer base, providing a tailored, individual approach can often be a challenge. CRM makes this easier.
When setting up and executing campaigns, such as events, customer days, knowledge sessions or product announcements, it is important to gain insights from customer data. Throughout the entire process, you should know which points are relevant to your customer. What their interests and sales triggers are and what stage of the acquisition cycle they’re in is all essential information which you can organize an entire campaign around. All contact moments — from emails to your newsletter to your content strategy — can be tailored to the customer profile.
The software requires and supports four different stages: determining target groups (segmentation), registering the customer or prospect and gathering information about them, maintaining the system, and evaluating the event or action (analysis, often using surveys).
Target groups, registration and supplementation
Segmentation can be performed on the basis of a wide range of data. For example, in geographical data segmentation, a target group is based on a particular service area. If you register multiple customers from a particular region, turning these customers into one group is a sensible choice. You can then further analyze their behavior and data for segmentation on an even more specific level. Such information can be derived from internal data, but you can also buy data and analyses from other companies.
Tracking enables scaling
CRM software is not a magical, ready-made solution for everything. Everything depends on the input of the employees who have to keep the data up to date, regardless of whether it’s at a large or a small company. So it’s not just about the system, but also about the CRM strategy within the company and to what extent it is actively applied.
Collecting data to verify effectiveness
The end of an event or knowledge session is a great time to ask visitors to fill out a survey. Extended in-person contact means that customers are more receptive than usual. You might also contact them by email or telephone. You can use these methods to gain valuable data inexpensively, which you can simultaneously use to measure whether the analyses have led to valuable insights.
CRM software is an excellent tool to steer an organization’s campaign management in the right direction, provided it is used in the right way. If the foundation is good, segmentation and information gathering can be used to build a high-quality database that is useful to all divisions of the company.