Ultimate Learning Guide To CRM & Retention Marketing
Over time, the dynamics of businesses have changed drastically. We see both positive and negative changes but something that has changed the most is how businesses operate. This goes without saying that consumers always have been, and always will be, the most important factor for a business. Retention marketing revolves around the fact that consumers are a top priority.
Retention marketing means that you focus on keeping your current customers and consumers rather than attempting to find new ones. This is beneficial in two ways: firstly, it is much harder to get new consumers as compared to keeping your old ones. Secondly, giving priority to consumers you already have increases customer loyalty and saves you from losing customers. Most commonly, businesses use high-quality products and services to keep their consumers satisfied. This, in turn, helps in increasing consumer lifetime value which also helps the business generate more revenue.
If a business starts to focus more on generating new customers, their current customers might feel neglected in the process and they could stop using their products or services. This results in the business losing revenue. Keeping this in mind, smart businesses focus on retention marketing. This also helps in improving a business’s reputation or helps in establishing a good status. The most successful way to work with retention marketing is by establishing a two-way relationship with your consumers. You will look into their interests and their needs using different strategies and statistics. In return, this will increase customer loyalty due to which your consumers will be motivated to give you feedback to tell you what to improve in your commodity or service. This two-way relationship with consumers helps businesses in a very positive way. This way, a business gets to produce what is in demand. This way consumers stay happy and so does the business.
Another highly successful way to engage with your consumers is through personalization. Many successful businesses make sure they add a touch of personalization to their businesses. In fact, in today’s market, consumers demand personalization from businesses. If they are offered services as per their expectations, consumers will stay more engaged and will be more loyal to your brand.
Not so long ago, sales were just about sales. There was no complication seen or felt. The main emphasis was on whether their shelves are being wiped or not. Now, the dynamics have changed. Businesses tend to target their consumers and base their products on their consumers’ likes and dislikes. Businesses cannot just close their eyes and hope for the best to find potential customers. Retention marketing is the complete opposite. Loyal customers are targeted and efforts are made to retain them and keep them satisfied. Today’s technology has made it relatively easy for businesses to find their target market and work towards finding out more. This is the era in which social media algorithms figure out our interests, which makes it an excellent time to approach retention marketing.
The vital goals of retention marketing are simple.
— You have to keep your loyal customers happy
— And you have to encourage them to spend more.
These simple rules are based on paying attention to your customer’s interests and produce things that they would want to spend on. Even though this approach has its share of amazing results, yet it is growing at a very slow pace.
So what are the benefits of Retention Marketing?
Retention is cheaper than Acquisition
No matter what we’re doing, it all comes down to dollar bills. It is widely understood that going the extra mile for new customers is much more costly than retaining existing ones. To further verify this, we have proof of studies. However, it is important to keep in mind that even though retention marketing is cheaper, it’s still harder than acquisition. It requires proper planning and strategies.
Loyal customers give you higher profits
We know that retaining loyal customers is not that costly but what’s even better is that they give you higher profits. Loyal customers will be willing to spend more on your product and more frequently than new customers. They will look forward to new products by your business as well. Despite all of this, never put your customers to a test. Of course, loyal customers are open to higher prices but do not inflate prices to test how much they will be willing to pay you. If you start being greedy then you might end up losing a very loyal customer base. After all, the business’s main aim should be lifelong revenue rather than a temporary increase in profits.
It’s different
We all are consumers so it’s not very hard for us to think for their perspective. As a consumer, out of all the brands that we use, how many of them make us feel valued? The answer will not be more than one or two. This is because most businesses focus on acquisition rather than retention. If you are a business that uses retention marketing, you automatically stand out in the crowd. There are just a few businesses we can name that truly keep us engaged.
Key pointers
The most important thing in retention marketing is to understand your consumers. It is really important to know them to find out what they like and don’t like. There are a lot of ways to do that. In today’s age, it is not difficult to stay in touch with anybody. Social media is one of the most effective tools for consumer engagement. Moreover, you need to plan and strategize what you want, how you want it and what tools will help you achieve it. You will need to cover all your bases such as your target age, gender, overall target market, and then you will further have to study their interests. This is not at all impossible because the technology available to us nowadays makes it quite simple.
Retention marketing is a strategy that ensures your business does not shut down. The main focus is on the people who already are willing to spend; you just need to keep them happy. This goes a long way and helps you generate a new customer base as well.
About This CRM Guide
This guide offers the most insightful articles, educational videos, expert insights, specialist tips and best free tutorials about CRM from around the internet. The learning guide is split into four levels: introduction, basics, advanced and expert. You can learn at your own pace. Each item shows an estimated reading or watching time, allowing you to easily plan when you want to read or watch each item. Below you’ll find a table of contents that enables you to easily find a specific topic you might be interested in.
Introduction To Retention Marketing
Retention marketing is a term that basically boils down to keeping your clients or consumers happy and spending on you. Through the provision of high quality products or services, you will be able increase the Consumer Lifetime Value (CLV) and the overall revenue of your business. In business, it has come to be a commonly agreed fact that it is significantly harder to attract new clients than to keep those you already have. In addition to this, retaining just a fraction of your existing consumers is much more beneficial than new client acquisition.
Beginner's Guide to Customer Retention Marketing
Help customers see the value and achieve goals using your product or service. But there’s more to it than just answering their phone calls and helping them onboard with your software — it’s about creating a process from the very beginning that fosters communication, trust, and mutual growth.
What Is Customer Retention Rate & Why Should You Care?
There is one primary formula to measure customer retention. Essentially, what you are looking at is the number of customers you still have at the end of a period relative to the number you had when that period started.
The formula is CRR = ((E-N)/S)) X 100, with the following values:
E = the number of customers you have at the end of the week/month/year or other duration
N = the number of new customers your business made a sale to or acquired in some other way during a given period
S = the number of customers you had at the start of the period
How To Define And Calculate Customer Churn
Churn rate, also known as the rate of attrition, is the percentage of users who stop using an app within a given period.
For an app to grow, the number of new users must be a higher than the number of users who leave. Say you start January with 600 users, and at the end of the month, you have 400 users.
Here’s how you would calculate your churn rate:
(600-400)/600 = 33.33% churn rate.
What Is Customer Relationship Management?
CRM apps typically are built around relationships. They’ll help you find all your contacts who work for the same company and any messages that have been sent about your work with that company, and show you who on your team was in contact with them last so you can get an intro. A CRM will help you get the big picture of your contacts, and help you know exactly what to talk about the next time you meet or email someone.
Beginner's Guide To CRM Systems
A Customer Relationship Management (CRM) system helps manage customer data. It supports sales management, delivers actionable insights, integrates with social media and facilitates team communication. Cloud-based CRM systems offer complete mobility and access to an ecosystem of bespoke apps.
What Is Customer Lifecycle Management & Why Is It Important?
CLM is about implementing a clear, rigorous analytics framework so that it’s possible to track and measure the movement of people along the buyer lifecycle, gauging the effectiveness of your overall strategy. Achieving these aims involves setting up an infrastructure for measuring the number of users at each stage of the buyer lifecycle and utilizing available channels to target them with relevant content and experiences.
Beginner's Guide To Customer Onboarding
A positive onboarding experience confirms that your customers made the right choice, and it ultimately, helps you to retain them. The top two reasons that customers churn are 1) customers don’t understand your product, and 2. they don’t obtain any value from it. Customer onboarding can solve both of these issues.
Tips To Improve Your Customer Onboarding Strategy
There’s no one-size-fits-all onboarding process, although if there is anything universally applicable, it’s the idea that you need to pay attention to your users, understand what they need, and make sure you’re delivering consistent value. It’s also true that onboarding works best when you consider it as a continuous process – not just something that lasts for the first 30 or 90 days after a new sign-up.
Ways To Reduce Customer Churn
Give your customers reasons to keep coming back by showing them the day-to-day value of using your products, by making your products, services, offers, etc. a part of their daily workflow. For starters, provide ample and versatile content about the key functional benefits of your product and offer regular news updates, such as announcements of deals, special offers or upcoming upgrades.
Examples of Customer Retention Strategies That Work
How do you create a customer retention strategy that keeps your current customers engaged and happy? We’ve broken down nine customer retention strategies that the biggest brands are currently using to inspire loyalty. From leveraging convenience to prioritizing personalization, these are elements any customer success team or marketer can take and test today.
How To Build An Effective Loyalty Program
With business owners, loyalty programs improve customer retention while consumers appreciate loyalty programs because they gain added incentives and rewards. Therefore, using loyalty programs in marketing strategy supports e-commerce businesses to motivate customers’ purchases and increase revenue considerably at a given time.
Advanced CRM Strategy Examples
Providing examples of the successful use of a CRM strategy can be very useful in illustrating the power of the principles, processes and supporting information systems involved. Here are some good examples of how CRM can revolutionize your business. All of these presume that all precursor work related to obtaining an integrated single customer view has been successfully completed.
How To Measure CRM Success
Measuring the right metrics can be the difference between a success story and a cautionary tale. If you know how to measure your CRM success, you can keep track of how close you are to reaching your goals. If you find yourself off-track, be willing to test different ways of using CRM to meet your business goals. Try something new, measure the results, rinse, and repeat.
Compare Customer Relationship Management Software
Customer relationship management (CRM) software allows businesses to better manage customer interactions, support, and relationships through reliable systems and processes. It also integrates organizational processes across marketing, sales, and customer service.
Big Brand CRM Case Studies
With CRM, the Tescos and Amazons of this world were not only able to win new customers, clients, and users – they could extract lifetime value from them. With targeted marketing campaigns, these brands hit the right people with the right offers, at exactly the right time. Let’s take a look at our top 10 CRM case studies from the world’s leading brands.
Multichannel CRM: Why It's Critical for Marketers
Now that consumers are interacting with and transacting on multiple devices, in multiple channels daily, it’s increasingly important for companies to have a multichannel-ready CRM.
Critical CRM Trends To Keep An Eye On
CRM is a competitive, growing space. Everyone talks about providing best-in-class customer experiences, about CRM strategies and solutions, and about the vital role CRM plays in catapulting companies forward as marketplace demands intensify. So how can your organization know which shiny new objects are worth pursuing?
Understanding Customer Relationship Management Systems
This 36-minute video is an introductory class covering various elements of a customer relationship management system, like:
- What is CRM
- Why you need CRM
- What CRM systems offer you
- How CRM systems are obtained
Further Reading: Best CRM Books
The Art of CRM: Proven strategies for modern customer relationship management. In The Art of CRM, Max Fatouretchi shares his decades of experience building successful CRM systems that make a real difference to business performance. Through clear processes, actionable advice, and informative case studies, The Art of CRM teaches you to design successful CRM systems for your clients.
Organization, Technology, Culture: A playbook for implementing and maximizing the value of CRM. This playbook focuses on how companies will succeed in implementing a new CRM or maximizing the value of their current CRM. Whether you are planning on implementing, or have already implemented your CRM, this book is for you if you want to raise your organization’s performance by using CRM properly.
Do you CRM me? An Analytical Guide to Customer Relationship Management. In his new CRM analytics guide, Omer Lizotte shows you that you don’t have to be a mathematical genius to understand what the numbers are telling you about your marketing and customer-service stratagems. Lizotte understands how difficult it can be to turn theory into practice when it comes to CRM. There are, for example, so many different systems and metrics to track. It can be overwhelming—but no longer.
Customer Relationship Management: Concepts and Technologies. The book explains what CRM is, the benefits it delivers, the contexts in which it is used, the technologies that are deployed, and how it can be implemented. Both theoretically sound and managerially relevant, the book draws on academic and independent research from a wide range of disciplines including IS, HR, project management, finance, strategy and more.
Further Learning: Best CRM Courses
Customer Relationship Management. The objective of this business and management course is to equip you with a sound foundation of CRM concepts and best practices so you can implement CRM practices successfully for long-term profitability. In this course, you will learn how to shift from a short-term customer transaction based mode of operation to a long-term relationship mode and understand the benefits of having strong customer relations.
Microsoft Dynamics 365 (CRM, NAV, AX) Intro Training Course. If you are looking to transition into Microsoft Dynamics 365 or you are already a Microsoft Dynamics CRM, NAV or AX Consultant or you are a business owner & want to use Microsoft Dynamics 365 for your organization, this course is for you. Microsoft Dynamics 365 allows companies run entire business from end to end and also provides intelligent insights for quick decision making.
A Business Manager’s Complete Guide to SalesForce CRM. This course will teach you how to create a customer-focused business that will keep customers satisfied and coming back for more. You’ll master how to use SalesForce to improve your company’s customer service, whether you operate a service-based or product-based business.
Learn HubSpot CRM From Scratch. Learn the basics of the HubSpot CRM platform! This course walks you through the free version of HubSpot, explaining the tools that HubSpot offers and how to utilize them. Includes a caste study where the sales funnel of a startup company is analyzed, and HubSpot is utilized as a software solution to optimize their funnel. This course is perfect for anyone going into a job where HubSpot knowledge is required!