To ensure its sustainability, a company must have loyal clients. Indeed, acquiring a customer is often expensive and building customer loyalty will increase their “lifetime value” to amortize the cost of customer acquisition over a long period and multiple sales.
To improve their loyalty strategy, companies can rely on several levers, including CRM tools. What is it about ? How do they contribute to customer loyalty? This is what we are going to discover in this article.
CRM tool: definition
CRM software is an integral part of customer relationship management. Indeed CRM literally means Customer Relationship Management, or customer relationship management in French.
The primary objective of a CRM is to improve the company’s customer relationship. And that obviously includes customer loyalty.
Concretely, the software will allow you to set up various actions. THE CRM tools of Customer Loyalty are used in customer relationship management. And this, throughout the customer journey. From sales to e-commerce, including marketing and customer service. These are comprehensive programs aimed at building customer loyalty.
This type of software makes it possible in particular to record and analyze all the relationship between customers and the company. By recording all prospect and customer data, this allows you to have a global vision. This concerns the postal address, the email address, the social networks of the customers… These are therefore all the means of communication used by the target.
This data can then be used toimprove the CRM strategyand therefore lead to a loyalty of the clientele. Indeed, the data collected makes it possible to create a personalized relationship between customers and the company.
The feeling of being heard and of “mattering” for a company is important for retaining customers. Customers who are satisfied with their purchases tend to talk about it around them. Then back to the store.
There CRM customer loyalty is therefore a major challenge for the development and quality of a society.
How does a CRM tool contribute to customer loyalty?
To improve customer satisfaction
CRM software makes it possible to have a better knowledge of the clientele. Thus, the software stores a whole bundle of data that makes it possible to trace the customer journey and analyze its activity.
From then on, the company can know if the consumer encountered a problem during his purchase. She can then identify any problems and correct them to improve the customer experience, both in-store and online.
Additionally, these programs CRM customer loyalty provide information on the needs and desires of users. Thanks to the information collected (such as the products purchased before), the company can anticipate the demand of its customers. Thanks to marketing automationsemi-automated scenarios will be triggered based on behavior or data (anniversary date, etc.) in order to send the right message at the right time to increase the chances of converting.
To reward the most profitable customers
Thanks to the different CRM software, it is possible to quickly identify the most loyal consumers. Loyalty to a company means more purchase volume, and therefore these consumers are profitable.
To make sure of build consumer loyalty sustainably, rewarding them is a good strategy. This reward can take many forms. It can be a voucher, a reduction, a reward in kind (to be withdrawn in store) or in cash…
The objectives of these awards are toimprove the relationship with the customer, and to retain him even more. To make him feel appreciated and valued by society. Thus, it will show loyalty to the brand or products. He will also not hesitate to speak positively about it around him (a free communication campaign for the company). This can only be beneficial for the sales volume of a company or a store.
For personalization of follow-ups
Have recourse to a CRM customer loyalty tool enables personalized communication. Indeed, the data collected thanks to the software makes it possible to establish a privileged relationship with the consumer. The tool informs you about his identity (email, contact details, etc.), his purchase history, any problems he has encountered. And much more. Thanks to its information, the company knows for which communication campaign opt for a better experience.
Thanks to Tailor-made follow-up of each consumer’s journey, the company is guaranteed to obtain consumer loyalty. With a marketing campaign and targeted communication, the consumer will have a good experience when selling. He will therefore be more likely to buy the company’s products again when they are offered to him in the store.
Customer data from a CRM
Contact data
As we mentioned, the CRM customer loyalty tools collect the contact data. These include the email address, telephone number, identity, etc. This data serves several purposes: improving consumer knowledge or personalized follow-ups.
The purpose of a CRM customer loyalty tool is to gather all this information in one place. And this, regardless of where they were collected (online sales site, store, etc.)
Profile data
A customer’s profile can take several forms depending on the relationship between the customer and the company:
- In BtoB : the data concern the activity of the company, the region of exercise, the position in the company (manager/employee)…
- In BtoC : this is the size of the consumer’s household, his age, his hobbies, etc.
Preference data
As their name suggests, this data identifies consumer preferences. Among other things: his favorite products, or his preference for the management of his personal data (sharing or not).
These data can also be deduced via the behavioral tracking. This tool analyzes consumer activity on the site. On which pages he clicked, on which products… Thus, the CRM customer loyalty tools can identify their preferences to ensure targeted goals.
transactional data
These are all purchase actions performed by the consumer. Like the frequency of purchase, the number, the loyalty points, the seniority or the range of products.
Understand consumer activity makes it possible to build loyalty, thanks in particular to better management of the customer relationship. It also involves customer satisfaction. These objectives can be improved by implementing CRM customer loyalty tools.
Customer satisfaction and service data
Satisfaction is at the heart of the objectives of CRM software. As soon as a consumer interacts with the company, the data is collected. This can take the form of various actions: sending an email to customer service, responding to a satisfaction survey via email, etc. These actions can relate to the consumer’s experience in general or to a particular activity.
FAQs
What is churn in marketing?
The churn, also called churn rate, informs about the share of customers lost by a company over a given period. Expressed as a percentage, this rate shows the proportion of consumers who do not renew their experience. For example, they may not take advantage of an offer or stop using a service.
The attrition rate has two forms:
► Total : the total churn rate refers to consumers who are no longer loyal to a brand. They completely left it to go to the competition.
► Relative : in this case consumers are loyal to the brand, they only change product or service.
What are the challenges of the customer journey?
To ensure the sustainability of a company, a good customer analysis is essential. Indeed, by knowing the customer journey, it can better understand the needs of its customers. This mapping is a gold mine when deciding on a company’s business strategy.
Thanks to the data on the behavior of the customer, development programs of certain axes can be created. And so, put in place a fine-tuned strategy, and therefore impactful. In order to respond as closely as possible to the desires and needs of consumers.
Thanks to the information collected, personalized programs can be implemented to strengthen customer loyalty.