The “80/20” rule in business is often used to point out that 80 percent of a company’s revenue is generated from 20 percent of its customers. Whether or not that ratio is accurate for your business, it does highlight the need to allocate resources strategically if you want to succeed, and that requires data about your customers.
The way a company uses data about its customers and their buying history in order to generate future sales, is known as customer relationship management (CRM). Through modern CRM strategies, businesses learn more about their customers and the best ways to cater to their needs.
CRM systems compile data from many touch-points, including past engagement on the company’s website, telephone and email correspondence, purchasing information and, more recently, social media. The skill and consistency with which a company applies that data is the secret to its success.
Data is King at Take 5 Media Group
The amount of data that can be mined for CRM purposes is extensive and diverse. To begin, it can be divided into quantitative and qualitative information.
Quantitative data is also known as measurable data, or data you can count, such as the cars a person has bought or the cruises they have taken over the last five years.
Qualitative data is also known as categorical data because it represents different categories, such as ethnicity, education, marital or socio-economic status. Both quantitative and qualitative data provide a trove of useful information about your customers.
In order to illustrate how Take 5 uses CRM data to help you engage and retain customers, we’ll use a scenario with our fictional American family, the Robinsons.
In this scenario, Take 5’s client is a regional company that manufactures baby cribs and accessories and wants to dramatically boost sales.
Take 5’s extensive, proprietary database can identify thousands of women who meet the quantitative and qualitative criteria relevant to the baby crib and accessories company, including Mrs. Robinson. On behalf of its client, Take 5 begins to share with Mrs. Robinson eye-catching information about the most popular new cribs and accessories via email, social media and direct mail. They offer her value with generous coupons and special promotions.
Mrs. Robinson appreciates the savings and decides to purchase a new crib from the company. CRM analytics let Take 5 know that Mrs. Robinson responded to the coupon, triggering a beautiful thank you note on behalf of the client.
Mrs. Robinson is impressed by such personalized service and tells all her friends about the new baby accessories’ company, generating positive, powerful word-of- mouth endorsement. She goes back to purchase more accessories after the child is born and continues to receive the same personalized treatment, getting offers for diapers and other baby items, as well as requests for feedback. Every year before the child’s birthday, she will receive a friendly birthday card and valuable promotion.
Mrs. Robinson spreads the word on social media and Take 5’s database continues to grow. Looking toward the future, Take 5 is ideally positioned to help the Robinsons with decisions ranging from teenage bedroom furniture to education, family vacations and every other life cycle event.
CRM analytics are the first step for your business to begin using customer data to make smarter business decisions with long-range impact. To find out how to get started, contact Take 5 Media Group at 561-819-5555.