We’ve all heard of Customer Relationship Management software and how crucial it is for a business’s smooth operation. But do you know what CRM actually is, what it does, and why it’s important?
Every business owner realizes that in recent years, there has been a drastic change in customers’ buying patterns. Due to the fast-changing customer behaviors, many businesses failed to catch up with customers’ demand to shop and interact with businesses through the web, and hence, suffered losses.
Customers are crucial to the well-functioning of every business. And the importance of customer satisfaction can in no way be undermined, which is why its every business’s top priority is to ensure their customers are satisfied with their services. And that’s exactly where CRMs come in.
CRMs help you provide your customers with an enhanced experience and generate better leads and pipelines through several digital marketing tactics. As they say, CRMs are not the future; they’re the present!
In this article, we’ll be discussing why CRM is important for your digital marketing strategy?
What is Customer Relationship Management (CRM)?
A CRM is an online system that is widely used by businesses to manage potential leads, digital marketing campaigns, and other customer service strategies to assist in data-driven decisions.
There is specific CRM software for specific businesses. For example, CRM for real estate and CRM for the construction industry.
Why CRM Is Important For Your Digital Marketing Strategy?
In this era of digitalization, when many businesses have left traditional marketing ways behind, digital marketing is the way to go. There are several ways a CRM is essential to your digital marketing strategy:
1. Helps Segment Customers
CRM software helps you segment your general market into segments. You can divide your market based on demographics (age, location, gender), their industry, or campaign type (SEO, local, social).
Dividing your audience into specific segments enables you to prepare a customized digital marketing strategy and also target the right audience.
For example, through stored data in your CRM, you can prepare a personalized email for a customer on their birthday to inform them regarding a birthday discount or send out a sale alert if you’re planning to host a sale in a specific location.
According to genesys.com, 62% of customers are likely to open an email because of a personalized line of subject. Therefore, the data intergraded into a CRM will help you connect efficiently with potential leads and prepare a strong digital marketing strategy.
2. Better Connectivity
A CRM software enables you to create datasheets on leads and potential customers, which in return allows you to target these customers in a one-to-one digital campaign.
For example, ever wondered why Netflix sends out “You Might Also Like” notifications? The popular binge-watch platform analyses your past activities, such as the types of movies you’ve previously watched, to recommend similar ones in the future. This is a digital marketing tactic to keep you coming back for more!
Therefore, through CRM, you too can use customers’ data to suggest products and services from your business they might be interested in. This can be done by sending out personalized emails or advertising certain products on their social media platforms.
3. Easily Track, Report, and Analyze
It’s no secret that a marketing budget is no less than a burden for many businesses. And not knowing whether the money you poured in to advertise your product yielded any results is a cherry on top. But with CRM, you can easily monitor how customers interact and respond to your marketing strategy.
This also improves customer loyalty as you give them the power to make important decisions. Moreover, by knowing which strategy is trending well in the market and which strategy isn’t producing the desired results, you can stay on top of customer demand and market trends and modify your marketing strategy in accordance with whatever works well with your target audience.
4. Helps Reduce Cost
An effectively carried out marketing campaign will always deliver a high return on investment (ROI). Marketing campaigns help drive sakes sales and hence increase profits. But another thing that could save cost while simultaneously increasing profits is if you save some marketing cost from your marketing budget.
CRM software can help reduce your marketing expenses by automating most of the tasks your team has to work on. With certain CRM tools that analyze and manage customer data, your team can focus on more important tasks such as getting back to that some important calls a customer made. This efficient use of time ensures your team is working to its full potential and may also prevent the need to hire additional staff.
5. Building Customer Loyalty
A customer buying your product or service isn’t where your marketing campaign should be deemed a success. It’s important to build long-lasting customer relationships to keep them coming back to your business.
One aspect of digital marketing services is to provide your customers with the best customer service. For example, if your long-term customer has any questions or issues, they need help immediately. And that’s where CRM comes in.
CRM can store all relevant information into one piece of data for your customer service representative to check. So, they can target the problem and find quick solutions. This gives your customer a good impression of the service your business has to offer. And no one can underestimate the power of the snowball effect!
Therefore, when you opt for digital marketing, it’s essential to ensure your business performs well all across the web, from your ads to your website.
Now You Know Why CRM is Essential for Online Marketing
In conclusion, CRM is important for every digital marketing strategy. To build a good digital marketing strategy, you need to target the right audience, segment it, get your message across, connect with your potential customers, and build customer loyalty. All while managing to reduce the extra cost involved in marketing. And for now, CRM is every business’s only way to achieve these goals.
If you need your business to stay on top of its competitors, increase its sales and have a strong customer base, there has not been in a better time to invest in a CRM!