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
② What to allocate to AI & what to do for marketers (→ We're Here Now!)
3 Key Elements of CRM Marketing
Lee Eun-young, CEO of Asha Group, a media commerce company, cited the following three key elements of CRM marketing in her book, Speaking with Data! CRM Marketing.
1) Segment
Segmentation refers to dividing customers into segments according to specific criteria. The beginning of CRM marketing starts with classifying customers. The most common segmentation is segmentation based on customer purchase journey. Segmentation is divided into potential customers, new customers, excellent customers, and departure customers. If multiple variables can be combined using marketing solutions, segmentation based on customer behavior, interests, and history is also possible.
2) Message
You should consider what message to send to each segment if you have divided the customer segments well. Customers' needs vary depending on their interest and favorability for our brand. A more flexible messaging is possible if the segment is segmented based on customer behavior data from the past. For example, extracting a customer segment that showed interest in a particular brand and sending information about that brand's discount promotion. You can tell a customer segment who has pressed the Apply for Consultation button but has not completed the application for consultation, or introduce other types of consultation channels, such as phone calls and chats.
3) Timing
You should consider the best time to send a message once you have a segmented message. This timing will depend on the type of business and industry. You should monitor the customer's movements during which season, which day, what time, and what item is in high demand, and use that data to send a message at the appropriate time. If a product needs to be purchased periodically, it is a good idea to calculate the repurchase cycle. For example, if you extract a customer segment that has purchased cosmetics in the past and send a message recommending a repurchase by calculating the repurchase cycle, you will receive a higher response than any other message.
R&R allocation between AI and marketers
AI marketing solutions are essential to share the segment and send messages to the appropriate timing.This is because it grows, the more data that can't collect data and analyze data.To make this key tasks well, CRM market is working with AI and this key.
(🤗 AI personalization mascot solution" solution "I'll also tell you that you can use it together!)
[Customer Segmentation]
| AI |
✔️ Automated segmentation by analyzing vast amounts of customer behavior data |
| Marketer |
✅ Using AI-automatically extracted segments to plan messages and campaigns
✅ Extract and utilize the segment you want with the help of a marketing solution or developer
✅ Extract segments by planting scripts on frequently switched or departed buttons (page) |
| groobee |
✨ Automatically categorize into 10 groups based on RFM (Customer's Recent Visit, Frequency, Purchase Amount)
✨ Calculate the propensity and willingness of all customers to derive segments based on probability of purchase
✨ Separate customer groups that have moved segments within a specific time frame
✨ Provides 69 variables for marketers to segment themselves
✨ Dedicated Customer Success Team provides practical assistance to extract the segments marketers want |
[on-site messaging]
| Marketer |
✅ Segmented Message Planning
✅ Analysis of results after on-site campaign |
| groobee |
✨ Support for different types of messages, including pop-ups, slide bars, in-app messages, etc
✨ Optimized exposure with good messages after AB testing
✨ Support for sending up to 11 AB test messaging
✨ Provides real-time visibility of customer response (exposure, click, transition, performance) dashboard
✨ Onsite campaign editor functionality without designer collaboration |
[off-site messaging]
| Marketer |
✅ Message planning for each segment
✅ Analysis of results after off-site campaign |
| groobee |
✨ Support for various off-site message channels such as text messages, KakaoTalk, and app push
✨ Optimized exposure with good messages after AB testing
✨ Support text replacement in case of failure to send
✨ Optimized off-site message exposure rate
✨ Message delivery results and funnel data |
[Timing]
| AI |
✔️ Analyzing customer behavior data, including visits, clicks, purchases, departures, etc. (mainly viewed on the dashboard) |
| Marketer |
✅ Break sales by quarter, day, and hour with dashboard
✅ Select the timing to maximize efficiency and plan and proceed with the campaign |
| groobee |
✨ Provide various performance indicators such as site status, campaign performance, visit and order trends
✨ Provide detailed history based on customer behavior patterns
✨ Provide product recommendation algorithm performance reports for each item such as exposure, click, and order
✨ Provide detailed information such as the date and time of order, member ID, order amount, quantity, and product name of the customer |
[+ Product recommendation]
| AI |
✔️ Recommend personalized products based on ️ customer interests, tastes, past history, and real-time behavior data
✔️ Optimized as a performance and good algorithm among multiple algorithms mounted on each page |
| groobee |
✨ Provides a total of 28 recommendation algorithms (16 AI algorithms + 12 statistical algorithms)
✨ Automatically create groups based on customer preferences and summarize their features with LLM technology
✨ 3 types of recommendation algorithms available on all pages
- Category-based: Appropriate product recommendations for customers interested in a particular category
- Product-based: Product recommendations related to customers who are interested in a specific product
- Based on search results: Product recommendations related to search terms searched directly by customers
✨ Provides easy-to-create product recommendation inventory editor capabilities
✨ Set marketing objectives (click/order) and automatically apply to the most effective AI
|
In the past, there was a strong belief that if a product was good, customers would naturally flock to it. It was true. However, there are many similar products in the market these days, and customers are hesitating in the face of many options. CRM marketing, which uses authenticity as a weapon in an environment where quality alone cannot compete, is already powerful in itself. If you are concerned about the long-term growth and survival of a company, start CRM marketing that deeply communicates with your customers!
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