CRM Meaning: Benefits, Types, Examples, Success Case
Oct 19, 2023 3:06:34 PM •
Written by: Kristine Hsu
Use technology to target the right content to the right people through Customer Relationship Management(CRM), no more spamming and marketing going to waste.
What is CRM in Simple Terms?
Customer relationship management(CRM) is a software system that stores information on current and potential customers on one centralized platform, this way all departments are on the same page throughout a customer’s user journey. The goal of CRM is to reach more potential customers, increase conversion rates, and increase customer’s lifetime value(CLV).
Real Life Examples of CRM
Chloe wants to buy a new tennis racquet, so she has been at different types of racquets online. This is where CRM comes in for Company Y:
Marketing: Company Y’s marketing team sees that Chloe has viewed racquet model R2D2 20 times in the past week. Therefore, they send an automatic email to Chloe to alert her of a tryout event this weekend.
Sales: Once Chloe arrives at the event, the sales personnel already knows Chloe’s preferred racquet color, weight, and model so she doesn’t have to waste any time and can get straight to hitting some shuttles.
Along with the racquet, Chloe also bought a few other accessories that her sales personnel recommended as they knew her needs and preferences.
Customer Service: When Chloe gets home with her new racquet, she receives messages from Company Y’s WhatsApp business account about the recommended string tension for her racquet and a representative on standby to answer any questions she may have.
The cycle continues as marketing will alert Chloe of any new products that fit her needs.
3 Types of CRM Explained & Advantages
Aim: Use automation to do repetitive tasks more efficiently. Key Functions: Generate leads.
Marketing automation: Email campaigns.
Sales automation: Lead scoring process to prioritize different customers.
Service automation: Satisfaction surveys.
Company Y uses potential customers’ search data to place strategic digital ads targeted at specific groups to generate leads. As a result, the ads attracted Chloe to Company Y’s website and view their products.
Aim: Build personal relationships with customers by recording all customer interactions on one shared platform. Key Functions: Customer retention and satisfaction.
Customer interaction management.
Having Chloe’s data, all departments can effectively work towards providing Chloe with a personal shopping experience.
Aim: Turn customer data into actionable insights to make future sales more effective. Key Functions: Manage customer lifecycle efficiently and drive sales growth.
Data analysis: Key performance indicators, customer data.
Based on Chloe’s purchase history, Company Y is able to recommend Chloe with more products suited to her needs and find more customers who may resemble Chloe and become potential customers.
NISSAN is a well-established Japanese multinational automobile manufacturer that has incorporated CRM in its main channel of communication with its consumers, LINE. The 3 kinds of CRM used:
(1)Operational CRM: NISSAN has been actively transforming itself into a digital company by connecting consumers with "digital sales consultants”, and encouraging users to make reservations to view cars through their official website, leading to continuous breakthroughs in sales. On the LINE account, they regularly share the latest news, product highlights, and special offers for car owners to communicate its brand value to over 400,000 active users across Taiwan.
(2)Strategic CRM: NISSAN separates their customers into groups by tagging, thereby targeting different groups with different contents that appeal to their respective needs.
(3)Analytical CRM: The installation of CRM has increased NISSAN’s LINE friends by 1,000 per month and the average mass message open rate is as high as 40%.