Size of customer database really doesn’t matter when it comes to implementing good CRM practices. Many managers still measure success in what we like to call ‘ego metrics’, such as size of customer database, which is great to get attention from those in the board room. However, what do you do when customer value metrics don’t grow the same way? We have summarized our top tips to avoid the ‘ego metric’ trap.
Double Vision
Make sure you have a unique of view of a customer. Many databases we have laid our hands on have duplicate customers or have no identifier for a customer. Seldom would you actually get a 100% match when creating a single customer view, but even 70% is better than double vision. Otherwise you risk over inflating customer value metrics and what can be achieved from tactical campaigns targeting the base.
Geek is the new Chic
Benchmark your customer database. Despite the size, develop meaningful metrics to understand $ impact on customer value. Use analytics to unlock opportunities in your customer data. For example, how long after acquisition do customers stay active? Which customers are generating most of your value, and what is the opportunity to nurture value from the rest? If you have multiple brands then how much engagement do you have from your top customers across these? If you need a place to start then you can use our CRM KPIs Checklist as a starter.
Mind the data gap
Think of customer databases as an evolving species. The business environment dictates the shape, size and function. Therefore, as your business environment evolves so will the data required to support relationships with your customers. Many organisations stop at the basic demographics and basket transaction and don’t forecast integrating new types of data such as email response data or APP interaction which would allow you to have more experience lead conversations vs. offer only based communications with customers. Therefore, it is important you keep ahead of this evolution and plan the data you need to enhance operations using your customer database. Ensure all stakeholders from different departments are involved in this process to align all areas of customer data capture opportunities.
Now you have data…use it wisely!
Contact strategies exist because they are useful from both the business and customer perspective. Customers in this region are waking up to the value of their data and whilst some may still willingly call out their mobile number after buying a toothbrush, they are putting a blind trust in the company on how it is used. There is more value in a database with 50k customers who have not opted out of emails, SMS or Push notifications vs. 100k that have. Each business and industry will have different thresholds for what is right in terms of a contact strategy. Monitor opt-out rates as well as customer acquisition and send campaigns based on the next best action for a customer rather than what product the business would like to promote.
We hope you enjoyed this read, if you have any questions on this document then please contact our team at info@cloudsocio.com.