CRM-a powerful tool to explore the value of retail customers

In the Internet era, when the search cost is getting lower and lower, the massive amount of information on the network gives the customer the ability to distinguish and make decisions quickly-choose or give up a retail brand product in one second, or change to another retail brand in the next second. A slight brand deviation may lead to the loss of customers.

 

 

In this regard, the brand should not be short-sighted about the customer's purchase behavior, purchase quantity, and payment amount today. Use loyalty to hold on to those valuable or potentially valuable customers, increase their satisfaction and loyalty to the brand, extend the customer's life cycle as much as possible, and ultimately achieve a doubling of customer value.

 

 

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Shakespeare said, "Not all the flash is gold ". Similarly, customers do not necessarily belong to your God. A study shows that, on average, 38% of potential customers waste time and energy on the brand's customer development work, and the final brand still gives up on these customers.

 

 

Therefore, when the brand system stores hundreds of thousands or even millions of customers, we must be clear that not all of them can become customers in a large database, can bring profits to the company. On the contrary, most of them are likely to consume the company's costs without making any profits. What brands need to do is to use CRM to screen out the most valuable part of "massive" customers and maximize their value.

 

 

Filter value customers

 

 

American Management masters once divided customers into three categories based on the customer's value for the brand: the most valuable customers, the most growth customers and negative customers. Brands must stick to their most valuable customers, convert their growing customers to value customers as soon as possible, and discard negative customers as soon as possible, because negative customers cannot bring any value, only resources are consumed.

 

 

Understanding the value of a customer should not be simply based on sales revenue, but should be based on costs and pay more attention to the costs consumed by each customer. If the sales revenue obtained from a customer is high, but the cost for serving the customer is also high, the two items are offset, and the final profit obtained by the company is very small, in this way, the value of the end customer is not necessarily high.

 

 

The CRM system can screen and analyze customer data to determine customer value. The system analyzes the frequency of the customer's circular consumption. The higher the frequency of the circular consumption, the larger the potential value of the customer increases. For example, the incremental consumption amount and purchase rate, the amount of a product or service each time a customer buys, and the increment purchase rate are high, which are related to the potential value growth of the customer.

 

 

From the customer's perspective, the customer also has potential requirements for classification management. Customer needs are increasingly diversified, differentiated, and personalized. The customer hopes that their personalized needs can be met, not only to meet their basic needs, they think this is a kind of respect that enterprises have for themselves. In addition, different customers have different needs for value-added services. For customers who have established deep partnerships with the brand, the customer also hopes to receive some value-added services more than other customers. In fact, the satisfaction of customers' personalized needs and value-added service needs has a huge impact on customer satisfaction and loyalty.

 

 

Maximize the value of "old customers"

 

 

Most brands usually focus on finding new customers, but do not care enough about maintaining the loyalty of existing customers. Some people have used the image of "leaking buckets" to compare this customer loss phenomenon. In order to ensure the original performance, the brand must have "new customers" continuously injecting from the top of the bucket; but at the same time, there will be no time to take care of old customers, resulting in poor service, A large number of customers are lost from poor after-sales services and other "holes. In order to keep the original turnover, we must constantly inject "new customers" into the bucket to supplement lost customers. This is an expensive and endless process.

 

 

According to the current research, the general conclusion is that the cost of a brand to obtain a new customer is 5 times that of retaining an old customer. If the customer satisfaction increases by 5%, the enterprise's profit will double. Therefore, to block the vulnerabilities in the bucket, enterprises win not only the maintenance of the number of customers, but also the increase in customer quality based on the increase in satisfaction and loyalty.

 

 

CRM should help brands to care more for customers and "flood" customers to keep them. To maintain customers and turn them into their own lifelong customers, we must first provide services that exceed expectations. To generate true loyalty and trust to a certain brand, consumers must be extremely satisfied with the various elements involved in the process and result dimensions of product or service provision. Only products or services provided by the brand to the customer that exceed expectations are not only satisfied with their expectations, can they establish true loyalty in the customer's mind.

 

 

CRM-a powerful tool to explore the value of retail customers