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CRM, the Customer Relationship Management is one of the main parts of the Marketing setup for each business. The final and direct interaction with the customers has to close the lead. You have to know your customer’s desires and expectations to offer a valuable physical or virtual product. Interaction with your customers is going to make you understand them better by finding a significant pattern.
The basis of any successful engagement with your clients is a proper plan of the current situation and their needs. Using the right channels from direct interaction up to putting the focus on branding are trivial points. An analysis of your customer’s behaviour is going to make you anticipate, predict and plan the future. Crucial for this is what I call Smart CRM – the intelligent way to focus on the important customers, the customers who generate your income. It will also reduce your actions regarding the general try to “rescue the month” at the final days of the specific month to push retention rates only.
You have to exclude specific customersfrom your overall business offer
Many managers believe that a high and healthy retention rate leads directly to higher revenue, but that’s not (always) the case! I do not mention any metrics for the definition of a healthy retention rate, because it depends on the specific business. What I can tell you for sure, that you have to exclude specific customers from an overall business offer.
Smart CRM focuses on individual offers to the customers who generate your income and make the customers who decrease your revenue bounce off. It does not mean to tell the customers who decrease your revenue to leave, simply make them go to your competitors to suck them dry. Focus on the loyal customers and VIPs and never forget to offer them a service by their desires, different strokes for different folks.
It’s absolutely possible to reach a higher revenue with less customers, you just have to select the right ones. This is of course a difficult task, but it’s worth to use your limited budget on those customers instead of going for the large groups. Smart CRM is part of the Smart Retention which is going to have a very big impact on your revenue – the current one and especially the following one.
By Jakob Wegrzyk | Sliema, MT | 01/10/2019