CRM Marketing: Increasing Business Retention with Customer Relationship Management
Cora • CX Manager, US Team
- CRM
- business
- Marketing
- retention
If you run your own business, you may know that CRM marketing has been a popular topic lately. If you look at the search volume on Google, it has increased almost 5 to 10 times in the last 3-4 years. What is CRM marketing, why are so many people interested in it, and how do you do it?
The reason why everyone is talking about CRM marketing
The effectiveness of Facebook ads has been decreasing, with CPM (Cost per thousand) ridiculously high and metrics unreliable.
The restrictions on the use of third-party data, commonly referred to as cookies, have made retargeting ads extremely difficult.
As more CRMs enter the market, consumers are starting to demand more specific and differentiated experiences than ever.
All of this leading to dynamic changes in marketing.
CRM marketing VS paid advertising
There was a time when paid advertising was everything, and it was all about measuring performance and making improvements by spreading ads on Facebook, Instagram, YouTube, and search keyword ads.
As ad performance deteriorated, CRM marketing has been getting more attention as a better substitute.
What CRM(Customer Relationship Management) marketing means
CRM marketing is a marketing methodology that creates more value by maintaining good relationships with your current customers. It's a set of marketing activities to ensure that you are in a healthy relationship with your customers, continually improve retention rates within those customers, and increase unit economics to create more VIP customers.
To achieve this, an increasing number of businesses strive to collect customer data in better ways and drive retention with that data.
How to utilize AARRR funnel for CRM
AARRR is a concept created by Silicon Valley investor Dave McClure and is often used to analyze customer behavior to grow your business faster. When you consider CRM marketing, your customer experience should also be designed in the format of the AARRR funnel.
➊ Acquisition ➋ Activation ➌ Retention ➍ Revenue ➎ Referral
In this article, we will focus on the acquisition to retention stages in the AARRR funnel that are essential for CRM marketing.
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➊~➋ Acquisition to Activation: Acquiring customers
"Acquisition" used to only refer to sign-ups, but the line between acquisition and activation has blurred since sign-ups usually happen when a customer makes their first purchase.
Today, the "Lead" funnel is getting the most attention for its ability to gather customer data even if they don't sign up.
➌ Retention: Get customers to come back
If you want to maintain your business at a healthy level with CRM marketing, it's all about how often your customers come back to you, making the retention funnel among the AARRR crucial.
4 steps of CRM Marketing
Segmentation: Identify and categorize your customer types based on their characteristics.
Personalization: Differentiate the customer experience with various messages for each type of customer.
Automation: Make gaining insights from segmentation and personalization automated, rather than manually done.
Interaction: Continuously communicate with customers (conversations, push messages, product feedback, etc.) to make them feel recognized and be a part of brand growth.
Read more about real business stories
CRM marketing is a long-term strategy
It's not easy to make this journey overnight, especially with the global economy entering a cold winter season. However, you will definitely achieve sustainable growth if you take this opportunity to understand what customers love about your brand through quality data and feedback. Channel Talk will run with you down the road to support your success!