If you’re new to using CRM software (or if you have recently considered investing in CRM software), you may be wondering how a suite of integrated client-focused technologies can be used to leverage more revenue from existing customers.
In order to answer the question, we must first understand one very important aspect of what a powerful CRM platform can do for your company – building databases.
Storing customer data
Businesses that are based on face to face sales are largely a thing of the past. No longer do we expect door-to-door style salespeople to engage us with a steep sales pitch.
Modern-day marketing practices involve gathering data on the demographics most likely to engage with our brand, before tailoring our marketing approach to connect with people via the most effective channels. The aim is to find out who might want to know more about our products and to find the best way to educate them.
CRM software can store customer contact details – such as email addresses – for later use with integrated marketing strategies (e.g., email campaigns).
Reminders on who bought your products (and when they bought them)
CRM technologies are designed around the customer. If there is a working practice or sales technique that doesn’t resonate with your audience, the reporting features within the software will be able to help you to highlight what is going wrong. Likewise, CRM tools can help you to isolate sales opportunities that may benefit you.
For example, you can set reminders to inform you when dates are coming around that are linked to annual purchases. People buy summery things in the summer (e.g., suitcases, holidays, holiday insurance, garden furniture, BBQs, etc.) and wintery things in the winter (e.g., indoor log burners, winter coats, wet weather car tyres, etc.).
Where your customers have purchased goods or services from you before, CRM software can inform you that the time of year is ripe to re-target those customers with goodwill emails and offers on similar products to those that they have previously enjoyed.
Acting on the most relevant data
Increasing your revenue from existing customers means spotting the opportunity to connect with people at the right times and through the most appropriate channels. CRM software can report on your marketing strategies and highlight where you could direct your resources for a better ROI.
Acting on instinct alone is not typically a profitable way to ensure the highest level of engagement with your customers. If you feel that your brand is suffering from a lack of leads, it may be that you have not paid attention to the motivating factors (such as whether the purchase was a seasonal purchase) that led to the original sale.
For example, people who bought a vacuum cleaner from you are unlikely to want a second identical product within 12 months. But they may want related products such as carpet shampoo and non-slip rug stickers.
CRM software can help you to realise the hidden revenue potential within your existing customer base.