CRM (Customer Relationship Management) is a marketing strategy that maximizes customer resources. In order to improve the Lifetime Value (LTV), we actively manage the customer's life cycle by conducting marketing activities according to customer characteristics. CRM marketing, which began to be activated mainly by domestic startups in 2019, is becoming increasingly important year by year. In a data published in August by FORTUNE BUSINESS INSIGHTS, a global market research consulting firm, the size of the global CRM market is expected to grow from $91.4 billion in 2023 to $101.4 billion in 2024, and to $262.7 billion in 2032. We will tell you in detail in two series of contents, "When" companies should start CRM marketing and "How" they can do it effectively.

[Preview of the series]
① 4 Signs That Need CRM Marketing (→ We're Here Now!)
② What to allocate to AI & what to do for marketers

4 Points to Start CRM Marketing

Does Our Company Need CRM Marketing? What preparations do we need to make for CRM marketing? Lee Eun-young, CEO of Yasa Group, a media commerce company, says in her book Speaking with Data! CRM Marketing that you should start CRM marketing if you encounter four signs.

1) when sales are stagnant
: Sales have stopped growing and not growing for several reasons. Competition may have occurred due to the release of a similar product, or there may be problems with marketing strategies. However, if our company's sales are only generated by new customers who have entered through advertising, and because of this, sales are always at a similar level, we need to introduce CRM marketing. It's because we need to grow loyal customer groups and increase sales by repurchasing them.

2) When customer data is sufficient
: Have you had a lot of members since your mall opened and are you seeing good sales? If so, then it's time to use this wealth of customer data to start marketing that classifies customers and sends them group messages. Exposure to the same messages and benefits to all customers will increase customer fatigue and waste corporate money.

3) When you don't have a regular care manual
: Regular customers who experience repeated repurchases are key customers who drive a company's sales. Continuous management is required in that you can leave at any time unless appropriate benefits and treatment are provided. As a fragmentary example, you can get a hint from VIP customer management in a department store. Department stores give VIP customers extraordinary credit for valet services, holiday gifts, and high mileage accrual benefits. If a group of VIP customers finds out that they are being treated the same as regular customers, their affection for the brand may rapidly cool down.

4) When customer retention falls
: Customer Retention Rate (CRR) is a measure of how long a company has had customers over a period of time. For example, if you had 100 customers on the 1st of this month, and you had 20 new customers throughout the month, and then you had 90 customers left at the end of the month, your retention rate would be 70%, which is 7 in 10 of your existing customers. If this customer retention rate continues to decline, we need to pay more attention to customer convenience to make our brand friendly. We need to quickly start CRM marketing, create customer communication contacts, and shorten customer service processing time.

#Goals #Target #Channel #Role of CRM Marketing

[Goal] = Increase customer loyalty
While performance marketing aims to "attract new customers," CRM marketing aims to "create excellent customers." It increases the company's profits by making potential customers (membership or first purchase) new customers (membership or first purchase) and by making new customers regular customers (constant repurchases). It prevents dormant customers from revisiting for more than a year, and welcomes returning customers after a long time to increase customer loyalty.

[Target] = 'Customers of interest' whose inflow has been completed
Prospective customers who have not yet visited our website are not subject to CRM marketing. These are customers that performance marketers should target. CMR marketing is a strategy to build long-term relationships by communicating with customers who are interested in our products and brands. So, we check the repurchase cycle, check the length of stay, and check the dropout rate and satisfaction.

[Channel] = Onsite
The main stage of CRM marketing is on-site (our company's website or app). If performance marketing considers the efficiency of external (advertisement) channels, CRM marketing manages internal channels. It utilizes off-site messaging such as apppush, text messaging, and KakaoTalk, but this is also a tool to induce on-site inflow. As such, the beginning and the end of CRM marketing are all done on real-time websites!

[Role] = Work of CRM marketers
CRM marketers first analyze customer data and then run a cycle campaign called 'Hypothesis > Planning > Execution > Measurement > Improvement' based on this. We need to analyze the transition and departure factors at each stage of the customer purchase journey and proceed with optimization. Design the appropriate message for each journey and prepare a strategic campaign to induce customer behavior in each group. Find materials that perform well with AB test. If you have formed a good customer group, you should also plan and improve a membership program to lock them in.

CRM marketing does not bring short-term results such as performance marketing, but in long-term perspective.CRM marketing uses excellent customer groups that repeat the reconstruction sale, and increase sales customers.Since extract appropriate messaging time, you can also improve the ROI of the returned/off site campaign.According to Nucleus Resolution, CRM's average ROI was reported to $5.6 dollars.I'm going to bring more than five times.We'll tell you how to do this useful CRM marketing, and market will be assigned to AI to AI.

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