In a previous article, we have discussed the basics of CRM, understanding customers, and gathering data. From there, you have learned where and how to gather data for CRM and marketing purposes.
In today’s article, we will talk about analyzing data for marketing. All of the data you will gather needs to be analyzed so you can use it for a successful marketing campaign.
Analyzing CRM Data For Marketing
Thanks to the internet and technology, almost everything everyone does nowadays can be tracked and recorded. For businesses and marketers, these records provide a wealth of data that can be analyzed for a wide variety of business decisions.
For CRM purposes, this means that the source of customer acquisition can be recorded. It can then be analyzed against sales data in order to achieve an accurate return on investment calculation.
Additionally, the recorded data can also be used to track where CRM and marketing efforts should be focused on. This way, you and your marketing team will not be wasting efforts on random stuff.
The ROI or return on investment is one of the major keys to understanding whether the efforts you put into marketing is successful.
Another key to success is to use technology in CRM effectively through integration. This way, you can be sure that all channels are tracked, and the information you are tracking is usable to all parties within your organization.
If you have one data but you have nothing to compare it to, the information is useless. For instance, if you know where your customers come from but not what they purchase, it is not usable.
In being able to produce actionable insights, you need two or more metrics to compare the data. This is why it is crucial to analyze CRM data. It can be used to help marketing initiatives in a lot of different ways. Below are some examples:
Campaign Analysis for CRM data
You can use the analyzed CRM data to find out which marketing campaigns will lead you to the best returns. With this analyzed CRM data, you can refine the successful campaigns and increase the return of investment.
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Personalization
As discussed in previous articles, personalization is crucial to marketing campaigns and your relationship with customers. You can use the analyzed CRM data to customize your communication with each customer.
Event Monitoring
There are a lot of brands that host offline events such as shows or sales to drive more attention to the brand. You can use the analyzed CRM data to tie offline events to your online interactions and sales.
For instance, your brand is hosting an offline event and there are a lot of prospects. You can gather CRM data through the use of a guest list or interactions with customers one on one then tie it to your online interactions. These prospects can later turn into customers online.
Predictive Modelling
Analyzed CRM data can also be used to predict a customer’s future behavior. This will ensure that you meet the customer’s needs at the right time.
Improved Customer Segmentation
Lastly, you can use the analyzed CRM data to improve customer segmentation. This includes the following:
- Customer Lifetime Value or CLV analysis
- Customer prioritization
- Identifying brand influencers and advocates
Customer Lifetime Value (CLV) Analysis
CLV is the term used to describe a customer’s profitability over its entire relationship with the business. This is used to predict each customer’s lifetime value to the customer. By analyzing CRM data, you can manage each segment properly. Additionally, you can use advanced customer profiles to help identify the behavior of each customer. In return, this information can be used to tailor marketing communications accordingly.
Understanding Customer Lifetime Value
To understand and determine a customer’s lifetime value, businesses need to take a good look at their customer base and segment them according to how often they purchase. Another factor to consider is how much a customer spends with your company.
Most of the time, the customers who spend more on your business cost more to acquire. However, since you have already put all these marketing efforts into building a relationship with the customer, it could also mean that they will stay with the company longer.
This is why it is crucial to take care of your customers. You need to look at long-term customer satisfaction and better relationship management instead of just thinking of short-term campaigns. Remember, quick sales and quick wins are good, but a lifetime customer is more valuable.
In addition to that, lifetime customers can also attract and refer to other prospects. This means that you should also take into account the referrals made by a customer and include it as part of the revenue generated by the customer.
The key to understanding the customer lifetime value is to first understand these costs. Once you understand the costs, you can then use the data to target your CRM strategies appropriately.
With this CRM data, you can make more informed business decisions such as what a particular type of customer is really worth your business. It can also lead you to decide how much you are willing to spend in order to win a specific customer or retain them.
Customer Prioritisation
This strategy helps you target small groups of customers with customized service or product offerings. It is important that what you are offering meets customer needs. This will generate more sales than simply offering random products to each customer.
Identifying Brand Influencers and Advocates
Many brands and businesses are using social media to their maximum advantage. And who wouldn’t? Social media offers you not only hundreds but millions of prospects. This is where influencers and advocates come in handy.
Handpicking influencers will help spread the word about your products and services. They will help market your business and get a lot of prospects in the process. Most influencers and advocates are once customers who have loyalty towards your brand. This is why it is important to build a great relationship with customers who have a high CLV.
You can also consider creating CRM loyalty programs for customers with a high CLV and for your influencers. These loyalty programs are designed to maintain customers by rewarding them.
© Image credits to Steve Johnson