A CRM Model & Understanding Customers

In our previous article, we have discussed what CRM is, and how it helps companies in their marketing strategies. To continue our chapter about CRMs, we will discuss a CRM model and understanding customers in this article.

A CRM Model

There are a lot of companies that utilize CRM for their strategies. These companies rely on a simple model to guide them strategically. 

A simple CRM model goes like this Advocate – Communicate – Covert – Marketing. Basically, you market to strangers with a product or a service until they turn into customers. Constant communication with customers turns them into friends, and friends turn into advocates for your business. It is a continuous cycle. 

As you can see, in a CRM model (as with any marketing strategy), the customer is the most important. In able to build a good relationship with your audience base and customers, you need to understand them first.

Knowing Customers

It is no secret that customers are the most important part of a business, and some would even refer to them as the most important stakeholder. After all, what is a business without a customer? Without these, there would be no revenue source. 

In able to build a successful relationship with your customers, you need to meet or even exceed their needs. To do this, you first need to determine what problems your customer has, and provide them with solutions. 

Sometimes, you even need to determine the problem and provide a solution before it even occurs. By doing this, you give customers a reason to continuously transact with your company above any other. 

Fortunately, with our technologically-advanced world and digital innovations, it is easier to create enhanced customer engagement. Many services today offer mass personalization to provide customers with a personalized email, offers, and more. 

Consumer Touchpoints

It is also important to know about consumer touchpoints. What are these exactly? Well, these are all the points at which your brand or company touches consumer’s lives during your relationship. 

All CRM has a starting point, and this is it. The goal is to speak with one voice across all of these touchpoints then deliver a rewarding experience for the customers with every interaction. 

A touchpoint can either be brand initiated or customer-initiated. What you need to understand is that every customer doesn’t start out as such. They begin as prospects. They first look into what you have to offer before becoming a customer.

Utilizing a CRM model

Utilizing a CRM model can help you convert prospects into a customer. And since most people always shop on price, it is up to you and your CRM model to convert them into loyal customers. This way, no matter what your competition in the market is offering, the customer’s perception of your brand and service will win. 

Consider this scenario: a prospect walks into your shop because they have seen an advertisement (the advertisement being the consumer touchpoint). As soon as they set foot in your shop, you want to make them feel valued and give them outstanding service, regardless if they are set on buying something or not. 

This customer service will help the prospect remember your shop, and convert them into customers. The experience they receive will also determine if they will be lifelong customers or not. 

Consumer touchpoints can also be a conversation between a sales rep and a customer. Or, it can be a timely tweet, an outbound email, and more. The point is that these touchpoints need to be carefully managed. This will ensure that the brand can continue its relationship with a customer. 

Three Phases

Generally, consumer touchpoints are divided into three phases. The pre-purchase/usage phase, purchase/usage phase, and post-purchase/usage phase.  The goal of a brand should be as follows:

Pre-purchase/Usage Phase

• To gain prospects and customers
• Heighten brand awareness through ads and personalized communication
• Shape brand perception. This is done to highlight the benefits that a brand offers over the competition.
• Indicate how the brand values each customer and their needs. This would also be the best time to show customers how you can fulfill their needs and wants. 
• Educate prospects through the goods and/or services that you sell.

Purchase or Usage Phase

Just because you have successfully made a sale from a customer doesn’t mean your job is done. You still need to provide them with a better experience to make sure they remain loyal customers. At this phase, the key goals for the brand are to:

• Deliver value
• Instill confidence for consumers
• Reinforce their decision to purchase
• Heighten brand perception

Post-purchase or Usage

All the post-sale interactions between the brand and the customer happen in this phase. After you have made a sale, you want to achieve the following goals too:

• Develop a strong relationship with customers
• Help the customers maximize their experience
• Ensure that your brand is delivering on the brand promise
• Increase a customer’s brand loyalty
• Remain on the customer’s top of mind, this way you are their go-to brand
• Invite repeat purchases.

As you can see, the CRM process builds up to create a good relationship with prospects to turn them into customers. Once they are customers, you can deliver on your brand’s promise to make them repeat customers and encourage them to advocate for your brand. Repeat customers can turn into loyal customers who can spread good words regarding your brand.

The main goal is to establish customer loyalty above any other. After all, every successful brand depends on its loyal customer’s long-term business. But what exactly is customer loyalty?

Customer loyalty can mean a lot of different things for different organizations. But ultimately, customer loyalty is about acquiring and retaining customers who will do the following for your brand and business:

• Project lifetime value for your business
• Purchase a variety of your products
• Use your services repeatedly during their time as a customer
• Spread the word about their positive experience with others
• Give you honest feedback on your products and services
• Provides you with honest feedback on their experience as a customer
• Gives you suggestions on how to improve customer experience in the long run

© Image credits to Steve Johnson