CRM and Data

Data plays a major part in every marketing campaign. But when it comes to the success of CRM initiatives, data is the central key. As discussed in our previous article titled A CRM model & Understanding Customers, the CRM model revolved around a customer. 

In order to have a successful CRM strategy, you must know who your customer is, understand their behavior, needs and wants. Even before your prospect turns into a customer, the gathering of data already begins. 

The first major step in CRM models is to gather enough data to match a prospect’s profile to a product, for instance, service or offer. This is why data is so important. 

However, data on its own is meaningless. All your efforts put into gathering data will be for nothing if it is not analyzed or acted upon. For instance, analyzing the data you have gathered can turn into insights that can then inform the various CRM processes and the business itself. 

In this article, we will discuss all CRM and data, and how data should be used. In addition, we will also discuss data mining, analyzing and organizing data. 

How Should Data Be Used?

If you have gathered all the data about a prospect and/or a customer, how should you use it?

The simple answer would be to use the data to drive consumer loyalty across all possible touchpoints. Consider this possible scenario: a customer shops on her store card on your website. She used her information and the transactions are recorded on her card.

Her information is gathered data which you can use to send more offers on the latest products. If she clicks on one of your advertisements or offers, she will earn points on her card or credit. Offering her points and credits gives more value to the customer and in return, retaining her business. 

Customer Data

Every good CRM program begins with data. It answers several questions such as who your customers are, what do they want and need, why they chose your brand over the other, how many of these customers are active and more.

The answers to these questions can be gathered through research. Conducting surveys focus groups and dipstick telephonic research are some of the best ways to gather data. 

With data, companies are able to create real value for the customers. The more valuable the customers see your brand, the more they are willing to be loyal customers. Remember, customers, are always thinking of what they can get in return for their purchase and loyalty?

More importantly, it is crucial to choose the right database in which you can gather and collate data. As you may remember from our previous article, there are many facets to CRM. This means that the quality and accessibility of the data will have a big impact on how well these processes run.

Consider these points for your business objectives when you are gathering data:

• Provide commercially relevant information to prospects and customers at every touchpoint
• When gathering data, capture additional contact details at every interaction. This includes conversations, negotiations, contracts, purchases and more.
• Keep track of any information you send out to the prospect and/or customer
• Consider anything that adds value to the relationship with your customer
• Take into account the user’s privacy
• Take note of any legal implications when capturing data

Where & How To Gather CRM data

As you might have guessed by now, CRM data can be gathered from a variety of touchpoints. Every interaction with a prospect or a customer can reveal a multitude of data you can use. Below, we will discuss where and how you can collect a range of data from whichever touchpoint.

Traditional CRM Data

These are used to capture data for sales purposes. It can also be used for marketing and support purposes. This data could include the demographic of potential leads and current leads such as age, gender, income.

It can also include psychographic data such as customer attitude, interests and customer values. Data can also be gathered and stored based on service and support records. 

Additionally, a traditional CRM can provide you with transactional data such as quotes, sales, purchase orders, and invoices. Web registration data and customer reviews can also be gathered and used. 

Data Mining

On the other hand, you can gather data through data mining. This process usually involves analyzing data to discover unknown patterns or connections. In other words, the goal is to look for patterns that are not obvious. 

It requires further analysis using statistical algorithms designed to look for correlations. This process of gathering data is used in order for businesses to better understand the customer and their behavior. Through data mining and analysis action, you can make more informed business decisions. 

Analytics Data

Then there’s analytics data. This type of data is usually captured by using specialized analytics software. For instance, the software can measure digital marketing campaigns and web analytics. In addition, it is often used by websites to generate high traffic volumes and achieving a website’s goal through CRM marketing tactics. 

Social Media Monitoring Data

In a world where social media can be accessed by anyone anywhere, social media metrics are important. Therefore, this data can be measured and analyzed to provide valuable insights for CRM implementation. 

Organizing Your Data

Now that you know where and how to gather data, therefore, it is time to organize. This is where CRM software can prove handy. There is plenty of CRM software available in today’s market.

These are used to collect customer information in a centralized space. It can also be used to automate lead and sales processes, making it easier for businesses to organize their data. 

CRM software can provide meaningful data insights into one system. After that, it makes it easier for companies and marketers to see customer data, their previous transactions with the brand, and other activities with the brand. 

Basically, CRM software provides a company with a record of interactions and transactions with every customer in one safe place. In the next article, we will discuss analyzing data for marketing purposes. See you there!

© Image credits to Steve Johnson