Page 221 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes

Notes Customer profile variable indicated that the organization has acquired the
customer’s information by different kinds of channels or systems to transform this
information into practical instruments to provide customized goods.

You can also profile information such as what they have bought from your business, the length
of their relationship with your business, how regularly they buy from you and how much
revenue they contribute. This can be important for businesses who are looking to find out who
their most profitable and loyal customers are – this data can be particularly useful when it comes
to creating targeted marketing campaigns.

CRM – the Benefits of Tailored Marketing

CRM software is something that can help businesses looking to profile their customers. Let us
take targeted marketing as an example. First of all, why is targeted marketing important?
Essentially, it is because if you are taking the time to create a campaign, you will naturally want
to get the best ROI you possibly can. If you were to just send out a general campaign to your
entire contact list, this might not be very productive as most of the people you sent it to would
be unlikely to be interested.

By contrast, if you have a good customer profile for a particular type of product or service that
you have generated using demographic and purchase information, you will be able to create a
campaign aimed at that group of customers. There’s no guarantee they’ll take up your offer, but
you at least will know that they are likely to be interested in what you’re sending them.

Considering your Profiling Strategy

In order to get the most out of your CRM systems, though, you need a profiling strategy so that
you can start to develop high quality marketing campaigns. There are several things you might
like to think about here.

Example: Who are your most profitable customers? Who are your most frequent
customers?

These two groups might not be the same but they can be equally important when you are
deciding where to aim your marketing.
Also, what products or services are you trying to sell? It can sometimes be quite time consuming
building accurate consumer profiles, particularly if you are utilising multiple variables, so it
can help to have an idea of your aims before you get started.

Once you have started to build your profiles, you might also want to look at your marketing
history with the customers in question. Have you sent them marketing material before? Do you
know how they responded to it?
Some of these questions can be hard to answer, but most good CRM software comes with report
and analysis functions that can help you come to useful conclusions.

Once you have built your customer profiles, it’s time to start implementing your strategy. As
well as targeted marketing, you might want to think about the other aspects of your business
that will be affected by the process.

Example: This could include your sales team, finance staff and front line customer services.

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