About CRM, Which Has Been Gaining Even More Attention Lately
We have provided a thorough explanation of the fundamentals and their importance.
We’ve also outlined a few specific CRM initiatives.
"What is CRM?"
If you're thinking, "I want to incorporate this more going forward!"
Read this article to learn the basics of CRM.
What Is CRM, Anyway?
About CRM
CRM stands for "Customer Relationship Management," and
This concerns customer management.
"Customer management" is a really confusing term, isn't it?
Simply put, initiatives aimed at building relationships with customers
This is referred to as a CRM initiative.
While carefully managing information such as customer data and repeat purchase rates,
Conduct marketing and reach out to customers
This is the main focus of the job.
There are various ways to approach customers.
Responding to customer inquiries by phone or email,
We come up with strategies to encourage repeat purchases through our repeat purchase programs.
When people hear "CRM," some imagine tasks such as customer service and preparing package contents,
I imagine there are many, but fulfillment and branding as well
It's one of the tasks involved in CRM.
Through these efforts, we want to show our appreciation to the customers who use our products
Building close, supportive relationships. That is what CRM is all about.
Key Considerations for CRM Initiatives
When considering CRM strategies, it is important to...
"Setting numerical goals and determining the criteria for achieving them"That's it.
As I explained earlier, there are various types of tasks involved in CRM, but
Especially jobs in customer service (CS) that involve direct interaction with customers
People who do this need to be careful.
------------------
・Talking with customers at the call center and ”building rapport”
・Exchanging multiple emails
------------------
With this goal, it feels a bit vague, and I'm not sure if customers will really...
"Are you satisfied or not?"
I don't know if he's happy or not.
Implement CRM strategies based on theory, not intuition
It's important to be able to think for yourself, and
The criterion for determining that is ”numbers.”
Not only sales, but also metrics such as response rates and open rates
Whether you have goals and are building relationships
Let's make sure we're able to make sound judgments.
And, based on that,
It is becoming important to consider the next steps.
What Is the Difference Between SFA and CRM?
A term often mentioned in connection with CRM services is
There is something called “SFA.”
This is an abbreviation for “Sales Force Automation,” and
Simply put,Sales Management SystemThat's what it means.
In the system used by salespeople,
Managing customer information and tracking progress in sales activities,
It is a tool that manages information sharing and other tasks.
As explained at the beginning, CRM is used to manage customers and
We will be conducting marketing activities.
Is this a system for customer marketing?
The key difference is whether or not it is a system designed for sales.
Why Is CRM Important?
Recently, there has been a growing focus on the importance of CRM, and
I’ll explain the reasons for this in three parts.
The Importance of LTV
To Increase Sales Through Online Retail
Acquire new customers at the lowest possible cost, and
To provide those people with products and services for as long as possible
It's important that people use it.
CRM initiatives and LTV are very closely related.
LTV (Lifetime Value)That is,
This refers to the total amount a customer spends on products and services over the course of their lifetime.
Recently, various regulations regarding ad delivery have changed, and
The scope of what can be stated has also become subject to restrictions under the Pharmaceutical and Medical Devices Act.
Furthermore, depending on the category,
For reasons such as an increase in the number of products and customers switching to competitors,
It's becoming more difficult to acquire new customers.
Therefore, in order to increase sales,
We need to increase LTV.
In addition, the customer acquisition cost per customer is calculated based on LTV.
It varies by company, but it’s generally 40% of LTV.
Now that it’s becoming increasingly difficult to acquire new customers,
By increasing the repeat purchase rate and boosting LTV,
You can increase the budget allocated to acquiring new customers.
To Increase LTV
We need to get people to become fans of our company and our products.
That's why we have CRM initiatives.
Competition is commonplace
There are more and more similar products on the market.
For example, when it comes to folic acid products,
Safety, peace of mind, folic acid content, ease of consumption, etc.
Their strengths and selling points are almost identical.
In terms of the product's visible strengths,
It's hard to differentiate them.
So, in what areas should we focus on differentiating ourselves?
That's right—it's a CRM initiative.
It is said that people evaluate a product twice before making a purchase.
The first time is “when you purchase a product.”
And the second time is “when the product arrives.”
If you can't differentiate yourself with the front end, then
When the product arrives or regarding post-purchase support,
"This is a service you won't find at other companies..." "I'd like to buy it again..."
It's important for people to think that way.
Have you ever had an experience like this?
—————
・I bought the product because I was curious about it, but before I knew it, I found myself drawn to the company's atmosphere…!
・When I asked a question about a product, they explained it to me very politely!
・I was subscribed to a regular delivery service when a baby shower gift arrived!
・There's a membership tier system, and I received a birthday gift!
—————
As you can see, it’s not just about the products—ultimately,
"It's precisely because of this company that I want to stay,"
It’s important to develop CRM strategies that resonate with customers.
A 1% Weight
Repeat purchase rates are also a factor in CRM initiatives.
Here, sales based on the repeat purchase rate
Let's take a look at change.
The chart below compares sales when the repeat purchase rate is 80% and 90%, respectively.
Even a 10% difference in retention rates can make a difference,
Sales on the fifth day are 230,000 yen different per day.
Just by increasing the repeat purchase rate
It really does have such a big impact on sales.
As I explained earlier, these days it’s been difficult to acquire new customers
It's becoming more difficult, and the costs are also rising.
An online business cannot survive by relying solely on new customers.
To get new customers to like our company and products
How long customers stay with us has a direct impact on our sales, doesn't it?
Specific CRM Initiatives and How to Use Them
Now that we understand the importance of CRM,
We’ll introduce specific examples of CRM initiatives and how to implement them.
The most important aspect of CRM initiatives is analysis
The most important aspect of CRM initiatives is analyzing the data to
The goal is to build on that and move forward with the next steps.
If I found out she doesn't like curry
Since then, we haven't really tried to go to a curry restaurant togetherI don't think so.
Measuring information quantitatively to understand customers is
by implementing measures that will make this possible, andIt is important to analyze those figures.
And, the most effective time to implement the measures is
Let's make sure we find it.
For example, for customers making their sixth purchase, "How to Use the Product"
Even if we include a flyer, the likelihood that people will think they need it is
It is considered to be low.
On the other hand, if we don’t include instructions for use in the package for first-time customers,
Going to the trouble of figuring out how to use it on your own
...or put it away.
It's not enough to simply implement measures.
Reflect on the results of the measures we implemented after careful consideration, gather best practices, and
It’s important to engage in marketing that leads to the next step.
Here are four CRM strategies
■Newsletter
It is mainly used for cross-selling and upselling.
However, customers tend to perceive this as a sales pitch,
It is also true that the likelihood of defection increases.
How much people feel the information we provide is necessary is
This becomes important.
>> Click here if you'd like to learn more about cross-selling and upselling.
>> Click here for more information about our newsletter.
■Autoresponder
Emails that are sent according to a scheduled delivery schedule tailored to each customer
More for communicating with customers than for sales
Information that is frequently used and that customers find useful
We can provide it at the right time.
Here, too, it is important to provide customers with the information they need.
◼︎Package Contents
"Included items" refers to the flyers that are packaged along with the product.
These often contain instructions for using the product, company newsletters, and the like.
You can convey information visually using photos, or
Communication with customers andIt can also be used for cross-selling.
Since customers will definitely open the box when the product arrives,
The unboxing rate for the included items is 100%.
However, whether the contents are actually being viewed or not...
It is difficult for sellers to know this, and it is hard to accurately measure the metricsI can't.
Including surveys where the answers are already known,
For example, by including a QR code to register for the official LINE account,
Let's include as many measurable metrics as possible.
■LINE Official Account
LINE is a messaging app used by 80% of Japanese users.
These days, most people send messages via LINE rather than email.
For that reason, rather than newsletters or automated email sequences,
While we can expect a high open rate, there is also a high likelihood that churn will increase.
You can use a combination of images and text in your approach.
You can also add links to improve the click-through rateYou can also measure it numerically.
Many companies are incorporating LINE into their corporate branding efforts, and
If your company hasn't adopted this yet, why not give it a try?
>> How to Create a Business Account on LINE Official Account
If you'd like to know more, please check out this article.
We are announcing how to use this resource
Here, we will discuss the details of the CRM initiatives mentioned above
Let's take a closer look at how we can put this into practice.
The initiative for first-time recipients is as described aboveWe will implement initiatives related to packaging contents and automated email campaigns.
Since this is your first delivery,First and foremost, we want our customers to feel that
「Trust and Peace of Mind」「Expectations for the Product"..."Isn't that part of it?
For this reason, instructions on how to use the product, greeting cards from the company,Featuring photos of the distributor's employees, etc.
We want you to feel at ease.
Also, changes before and after using the product, andInformation about the causes of that problem,
Include testimonials from people who are actually using the product
「The Latent Nature of Customers' Concerns" orExpectations for the ProductをLet's keep improving.
In our automated email series, we send notifications about our regular deliveries and specialSend a separate notice, and
Enhancing the Value of Products and the Companyto targetI'll get to the content.
For CRM initiatives starting with the second one and beyond,Rather than basic information such as how to use the product,
Coupons for the “Refer-a-Friend Campaign” andWe've added a special event exclusively for subscribers, and
"I want to stay here because it's this company!"We'll come up with measures that will make people think that way.
Also, please include the surveyTo provide our customers with better service
Retrieving Information...or do that.
It's not just about implementing measures, but about what those measures achieve
"What do we want to convey to our customers?"
Think about “what you want people to feel,” and
At what stage to distribute that contentIt's important to make a decision.
Summary
In this post, I explained what CRM is.
The Importance of CRM in E-commerce and
A brief overview of CRM initiativesI hope you understand.
By implementing measures, and based on the results,Building relationships with our customers.
In the context of CRM, that meansThis will become very important.
If you have any questions, please contact us using the form below.
