Everything you know about CRM in 500 words

Well, there's a challenge....but here's one I wrote earlier in answer to the question "What do you consider to be the main issues and challenges of embarking on a brand centric CRM strategy today?"

(Thanks to those in CEP who gave me ideas - couldn't accommodate them all here but maybe I'll write a book next time!).

In true CRM style, there is 'Value exchange' on offer to anyone posting a reply before close of play. Or free sweets. You're the customer. You choose. You're in control.

Adrian

"What do you consider to be the main issues and challenges of embarking on a brand centric CRM strategy today?"
The short answer is that there are a proliferation of challenges and issues, so in the limited space available (a page of A4) I grouped them into three broad areas.

Challenge 1:- Defining a role and measurable objectives for CRM

• For brands operating in today’s dynamic environment, connecting with potential customers and growing their value over time has never been more important. The explosion of digital communication channels has made it more possible than ever for brands to take these ‘mutually profitable relationships’ to a higher level.
• But before exploring the communication possibilities, the first challenge is to define exactly what the role and expectations of a CRM programme might actually be. The answer depends on the nature of the relationship the brand is trying to build with the customer.
• What kind of value exchange will characterise the relationship? Is it purely about reassuring customers that the brand is what they think it is, to keep them coming back? Is it simply an ‘offer’ strategy to stimulate a response leading to a single high value purchase? Or is it engagement on both levels, to build positive brand perceptions and repeat purchase over time?
• Characterising the nature of the current relationship and the desired changes over time also requires a robust measurement framework – be it in terms of value, usage, interaction, purchase pattern, brand perceptions.
• Addressing this challenge first will also help define the nature of the required activity, for example, scale of investment, frequency, channel and type of content.
  
  

Challenge 2:- Encouraging the right customers to ‘join the conversation’

• CRM success is dependent the quality and quantity of customers that join in the activity. Where and how do you find these customers? How do you encourage them to participate in some kind of regular, meaningful dialogue? Do they want one-way or two-way dialogue?
• Traditional ‘engagement’ begins when the brand reaches out, for example with a promise of value, to ‘sign-up’ customers to receive a regular communication e.g. an email newsletter (traditional ‘eCRM’). But increasingly it begins when the customer reaches out to the brand via their own social media, demanding interaction on their own terms.
• Many people no longer wait for an email; they prefer real-time conversation and interaction (let’s call it ‘Social CRM’). Having presence in the places where these interactions happen – for example mainstream social media platforms - is a vital part of CRM engagement, dictating the nature of the interaction – or ‘value exchange’ – on offer i.e. on-going/ regular (on the brand’s terms) Vs instantaneous/sporadic (on the customer’s terms).
  
  

Challenge 3:- Content that stands out – the reason to start and keep talking

• Nothing captivates the attention like relevant, compelling, personalised content. But it is easy for brands to think that customers find them as interesting and attractive as they do.
• Brands will only be of interest to customers when they have something useful, entertaining or valuable to say. Presenting a ‘one-size-fits-all’ narrative in the same format month in, month out via an email is not CRM – it is spam.
• For a relationship to thrive, it needs the spice to keep the romance alive. Relevant, compelling content in attractive, accessible formats that are easy to consume – whether it be a blog post, podcast, YouTube video, Webinar or email – provides this spice.
• And using data to drive personalisation, matching content to individual needs and interests, is the ultimate key to building strong, mutually profitable relationships between brands and individual customers in the long run.