In marketing, words that are made up of the first letters of English words appear all over the place.
Most of them are three letters of the alphabet, and the familiar “CRM” is one of them.
This time, we will explain
the marketing strategy
of “CRM” while touching on its meaning and the role of analysis.
“CRM” is one of the marketing methods!
”
CRM
” is an acronym for “Customer Relationship Management,” and in Japanese it is called “Customer Relationship Management” or “Customer Information Management.”
Although it is often thought of as just a customer management system, it is actually a marketing method that centrally manages customer information, analyzes that information, and utilizes it in a company’s sales strategy.
The spread of IT systems is one of the factors that has made this type of marketing method possible.
Thanks to advanced IT systems, an unspecified number of customers, previously invisible to companies, can now be individually viewed and visualized as individual entities.
Specifically, we analyze purchasing behavior patterns based on information such as customer information (company information), contact person information, past purchase history, and negotiation style.
Analysis of purchasing behavior patterns has made it possible to conduct one-on-one marketing with customers.
Specific example of “CRM” analysis (RFM analysis)
What kind of analysis methods are actually used in CRM?
There are various methods such as “decile analysis,” “RFM analysis,” and “behavioral trend analysis,” but here we will explain one specific example.
●Create a marketing strategy using RFM analysis
RFM analysis
is an analysis that divides customers into groups based on the following content.
・Recency (latest purchase date)
Divide customers into five groups based on their most recent purchase date. Companies with the most recent purchase date will be in the top group.
・Frequency (purchase frequency)
Similarly, customers are divided into five groups based on purchase frequency. Companies with high purchasing frequency form the top group.
・Monetary (purchase amount)
Divide your customers into five groups based on their past purchases. Companies with higher purchase amounts are placed in higher ranking groups.
Companies that belong to each top group can be said to be good customers.
In some cases, these three values can be analyzed in combination, and in other cases, all three values can be combined and considered as an overall rank.
The important thing is that you have to be clear about the purpose of your customer analysis.
For example, if a company belongs to a good customer group but has a low R value, it means that it has not done business with that company recently.
In other words, customers may be diverted to doing business with other companies.
Also, if the R value and F value are high but the M value is low, it can be analyzed that the purchase price is low even though there has been a purchase history many times, including the most recent one.
For these customers, you can also consider implementing a subscription model such as a flat-rate system.
“CRM” allows you to develop new customers and cultivate good customers!
What kind of effects can you actually expect from a marketing strategy using CRM?
First, the CRM system makes it possible to centralize customer information.
In other words, customer support, which was previously carried out independently by marketing and sales departments, is no longer separated.
By linking each other’s departments, you have a better chance of nurturing “prospects” and acquiring new customers.
Especially in BtoB companies, the decision-making process is extremely important.
If the customer is an individual, it is possible to make an immediate decision, but if the customer is a company, it is assumed that the decision will be made by upper management after internal consideration.
Depending on where you are in these processes, your approach will vary.
With CRM, you can prepare effective approaches for each stage.
This is because it is possible to link the optimal marketing tools at each stage based on past success stories of acquiring new customers.
Furthermore, if you continue to improve these marketing rules, you can refine your strategy to increase your success rate in a short period of time.
Additionally, CRM allows you to develop your current customers into loyal customers.
Especially now, with the spread of the Internet, it has become easier for corporate personnel to compare and consider various products and services, just like individuals.
However, if you compete only on price without added value, you may end up moving toward lower-priced products and services and losing customers.
However, by analyzing customer purchasing behavior patterns using CRM, you can propose products and services that better meet customer needs.
Analyzing customer information requires a clear purpose.
Marketing strategies formulated based on analytical data will allow you to allocate human and material resources efficiently and produce results that exceed expectations.
summary
◆The starting point of “CRM” is a “customer first” perspective.
Currently, many business models have shifted from the traditional product economy to one centered on the customer.
◆It is not possible to expect results just by introducing a “CRM” system.
◆It is necessary to create a system that can analyze customer information and share and implement the marketing strategy based on it throughout the company.
◆If this is done thoroughly, differentiation from other companies will naturally become clearer.
◆It is recommended that you start a department to promote marketing strategies using “CRM” and start by changing your mindset.