LOST YOUR CRM DIRECTION?
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- Nathan Hilary Jordan
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1 LOST YOUR CRM DIRECTION? THIS 5-STEP ROADMAP CAN HELP The better an organisation understands its customers and their needs and their expectations, the greater opportunity it has to satisfy those needs that s the essence of Customer Relationship Management (CRM). Have you identified the moments of truth for your customer within the purchase and post-sale lifecycle? Is every interaction supported by CRM technology and processes? Are those processes designed to foster tighter bonds of customer loyalty through a strong and differentiated customer experience? Is your CRM strategy focused from the perspective of the customer? Or are your CRM processes (or lack thereof) eroding advocacy and impacting results? WHAT S INSIDE: 01. THE CUSTOMER IS IN THE DRIVERS SEAT 02. PERSONALISATION IS KEY 03. CONSOLIDATED DATA DELIVERS A 360 VIEW 04. A CULTURE THAT FUELS CRM 05. PARTICIPATE IN THE SOCIAL REVOLUTION PRESENTED IN THIS GUIDE ARE FIVE AREAS OF CRM THAT WORK TOGETHER TO ACHIEVE SUCCESS. 1
2 01. THE CUSTOMER IS IN THE DRIVER S SEAT Some companies are so engrained in marketing at the customer when they should be listening to the customer. Approach the optimisation of CRM as if your customers are truly the heart of your business because they are. Adopting this mindset, you will ensure that customers and their needs, preferences and desires are treated with the utmost consideration. The voice of the customer is the one that matters How Well Do You Know Your Customer? Critical questions to ask: When customer-centric CRM falls by the wayside, often the cause is internal barriers: Internal thinking, siloed strategies, disconnected processes and technologies. Most CRM systems have been built from inside out, around an internalised view of the world. This makes it difficult to think from the customer s perspective. For successful CRM, consider everything from the customer s perspective. Who is my customer? How do they want to find out about products? Through what channels do they wish to buy? How do they want to be rewarded? How do they wish to interact with the business throughout the customer lifecycle? Customer Lifecycle REPLACE RESEARCH NEED RECEIVE USE EVALUATE SELECT REPLACE MAINTAIN Know the customer s preferences, behaviours and understand how they think. Closely monitoring and relying on what customers say about your business, products and customer service serves as an early warning sign at worst and a foundation for proactive steps at best. Utilising customer feedback in every aspect of CRM Too often, organisations get caught in the net of not understanding how to gather this type of information. 2
3 Methods for Gathering Customer Feedback: Feedback that comes through the normal course of conducting business, including customer service and sales call tracking No matter the tactic used, listen to the voice of the customer and break free from boxed-in internal thinking. Organisations are increasingly choosing to integrate solutions that connect individual data sources to a single CRM application creating a single view of customers for intelligence in order to act on customer actions and comments. 02. PERSONALISATION IS KEY A good customer experience is in the eye of the beholder. What s good for one customer may not be good for another. Every interaction creates a personal reaction. Not all customers are the same. A one-size-fits-all approach to CRM alienates a large portion of the audience. Target individuals, not the masses Methods for Segmenting Customers: Customer segmentation can help you understand what your customers really want and what you can offer them. A definition of segmentation Customer segmentation is simply the grouping together of customers based on similarities they share with respect to any dimensions you deem relevant to your business. Once armed with this information, tailor the customer journey to individual audience types. As a result, your business builds deeper relationships with customers and is able to personalise every interaction. 3
4 The art of customer segmentation Customer segmentation allows you to identify distinct groups of customers with a high degree of accuracy. Advantages of Segmentation: Identify most and least profitable customers Utilise resources wisely Focus marketing efforts on high-value customers or those with high influence Build loyal customer relationships With true segmentation, you understand buyers down to the most granular level, including how customers engage in the buying process and what type of information they need at every stage. As a result, you can target market segments by tailoring products, services, messaging and customer service to suit the needs and tastes of the various segments. Identify profitable customers Segmentation also gives you the ability to accurately identify your most valuable customers to categorise and focus on those who make the largest contributions to the bottom line. Focusing on the most profitable and influential customers and dealing with the non-lucrative in more cost effective ways can improve the bottom line. 03. CONSOLIDATED DATA DELIVERS A 360 VIEW Along with segmentation comes a desire to see more information on the customer all that is available. The business benefits are fuelling the adoption of CRM tools that provide a 360-degree view of customers and their interactions. A CRM system can be a powerful tool in your marketing armoury if it s used properly. Unite disparate systems Some businesses have architectures in which customer data is dispersed amongst 10 or 15 disparate systems. Some data is in an ERP, other in sales force automation, Excel and marketing tools, and more in content management systems. Even legacy applications contain a crucial data set. This siloed architecture makes it difficult, if not impossible, to get a complete view of the customer. To succeed in CRM, a holistic view of all interactions is required. The right CRM system gives you a full picture of customers, their behaviours and interactions in one place. With a comprehensive view of customers, it s easy to segment information and drill deeper for more specific data. 4
5 Laser-focused metrics A unified database, coupled with a robust data quality strategy, is the fundamental foundation for performance metrics and targeting the audience. With a transparent view of customers, you remove much of the guesswork from the process. It s true: Executing on thoughtfully developed customer-centric processes, consolidating systems, cleansing data, and crafting multi-segment marketing campaigns may sound daunting. A solid approach for recalibrating CRM and keeping the revamp on track is to work with a professional consultancy firm whose core competency is CRM. 04. A CULTURE THAT FUELS CRM The internal company culture has a direct impact on CRM effectiveness. Individual employees are of crucial importance. It is through their efforts that organisations sustain lasting customer relationships. Unengaged employees don t create engaged customers. How do you get buy-in from all levels of your workforce? Lead by example Culture starts with the leadership. A strong leadership is clear, consistent and transparent. Leadership not only communicates the company values; they live them. Without visible commitment by top management, customer-facing initiatives are more likely to fail. Leadership who regularly assess and act on to what extent their behaviours reflect the brand s values, company culture and commitment to the customer are more likely to achieve a truly customer-oriented culture. The entire organisation needs to not only buy into the idea, but also support it. A customer-centric culture is one that encompasses professionals at all level of the organisation from the Managing Director to the customer service agents. The workforce is passionate about solving problems and delivering the optimal customer experience. 5
6 Tools for success In order for employees to deliver great customer experience, they must be valued, supported, and have the necessary tools. THE ECONOMICS OF CUSTOMER SERVICE Successfully implementing a CRM application goes far beyond installing software and training staff. A new CRM initiative impacts the way each customer-facing employee does their job. On the other side of the coin, poor systems that are not intuitive and don t facilitate collaboration can damage a company culture. When employees don t feel empowered, they become disengaged. Customer service is negatively impacted. Don t let that happen. Instead, boost culture and tear down the walls between departments that are barriers to success. 70% NEWS OF BAD CUSTOMER SERVICE REACHES MORE THAN TWICE AS MANY EARS AS PRAISE FOR GOOD SERVICE EXPERIENCE RESOLVE A COMPLAINT IN THE CUSTOMER S FAVOUR AND THEY WILL DO BUSINESS WITH YOU AGAIN 70% OF THE TIME Work from a central knowledge repository and share customer data to ensure consistent customer service, effectively track leads, expedite the sales cycle and build targeted campaigns. IT TAKES TWELVE POSITIVE EXPERIENCES TO MAKE UP FOR ONE UNRESOLVED NEGATIVE EXPERIENCE Every interaction creates a personal reaction. 80% OF COMPANIES SAY THEY DELIVER SUPERIOR CUSTOMER SERVICE 8% OF PEOPLE THINK THESE SAME COMPANIES DELIVER SUPERIOR CUSTOMER SERVICE 6
7 05. PARTICIPATE IN THE SOCIAL REVOLUTION It is apparent that social media has forever changed the way customers communicate. And it s never going away. Forums, blogs, ratings, reviews and opinions abound online. Potential buyers are doing more research online and thus are more educated. Social media plays a critical role in buying decisions. It is changing the way customers buy. Power shift How social media and CRM click In the past, the brand used to be able to decide messaging and when the communication occurred. Now, that process has been reversed. The sales cycle now revolves around the customer and puts them firmly in control. The power of communication has shifted to the consumer. Today, the market decides what they want to say about your products and services, positive or negative. Using social media, your customers are having conversations amongst themselves. They make decisions about who they want to buy from and talk to companies on whatever channel they choose. In turn, they expect a relevant conversation from businesses. Social media fully engrained in CRM optimises the power of social interactions to get closer to customers. Monitor how customers discuss your company on their social networks to assess both positive and negative trends. But don t just listen. Participate. Social companies understand that they need to be part of the conversation. Furthermore, just participating is not enough. You ve got to add value to those conversations in an authentic and relevant way. Done correctly social CRM not only draws in customers, but they may bring colleagues and friends with them, to create a chain of brand ambassadors. Gather data while socialising Social media also provides a wealth of data intelligence on customer perceptions, behaviours and buying patterns. Are you using it to your advantage? Making sense of it all can transform your business. The right CRM system can help you track and understand customers online better and build deeper relationships. With social media, the market decides what they want to say about your products and services, positive or negative. CUSTOMERS ARE 57% OF THE WAY THROUGH THE BUYING PROCESS BEFORE THEY ENGAGE 7
8 Rest easy. Successful CRM is within reach All too often a well-conceived CRM project stalls or falls into disrepair. Why? Maximising CRM efforts is a combination of business strategy, choosing the right technology, establishing a data architecture, managing processes and achieving change in business culture. The task is far from easy, and the initiative extends across your organisation. It s often a difficult and arduous task to implement and manage on your own. Working with a CRM consultancy with a deep understanding of CRM best practices, technology experts who can execute, optimise and support your CRM initiatives significantly increases success. Consider TouchstoneCRM Join us at Microsoft Dynamics CRM 2016 When: Thursday, 1 st September 9:00-13:15 Where: The Goldsmiths Centre London, EC2M 5AD TouchstoneCRM is the smarter alternative to traditional CRM consultancy. Everything we do is designed to make sure you get the full value from your CRM investment. To us, CRM is much more than just software. It encompasses a wide range of strategies, processes and technologies. We re with you every step on your CRM journey. Join Touchstone and Microsoft as we showcase the release of Microsoft Dynamics CRM 2016 in London September 1 st. REGISTER See demos of Microsoft Dynamics CRM s newest features and how Touchstone can assist you in maximising your technology investment. touchstonecrm.co.uk 8
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