How to Improve Customer Relationship Management (CRM)

In a business, promotion is an effective way to introduce a product to an audience. However, of course the promotion must also be regulated with the concept of strategy. There are many strategies and management that can be done, one of which is customer relationship management or CRM for short. What's that customer relationship management?

Customer relationship management (CRM) is a business strategy by approaching the company and also the customer through the interaction data between the manager and the customer. CRM is also used to improve service, sales, to marketing.

Broadly speaking, CRM uses a communication strategy in terms of interactions between customers and companies. With continuous interaction, it will be easier for customers to make transactions and companies can gain loyalty and trust from customers. Thus, this can increase profits for the company with a record of the relationship that exists between the company and the customer can take place well.

benefit Customer relationship management

Customer relationship management (CRM) provides four benefits for companies, namely:

1. Encouraging Customer Loyalty

With a CRM system, companies can use customer information to understand what customers need, to answer customer questions. Thus, the company can gain loyalty and trust from customers.

2. Reduced Production Costs

If, the company already knows who their target customers are. So, the focus of service already has its purpose. Thus, production will focus on registered customers and this can also reduce unnecessary production costs.

3. More Effective Operations

With the above benefits, it can also reduce operational expenses, because companies do not have to worry about declining service quality and can easily provide convenience in dealing with complaints from customers.

4. Earn Optimal Income

Through a CRM strategy the company will get benefits such as encouraging customer loyalty, more effective operational activities, and reduced operational costs where these things can provide benefits (profit) for the company.

5. E-mail marketing As a Form of Digital CRM

Implementation of CRM can be done by using e-mail marketing channels. Email marketing used by companies to reach audiences or customers personally. By using email marketing, companies use strategies to lead audiences to make transactions and become customers.

Meanwhile, the advantages of email marketing this is a relatively cheaper cost compared to marketing channel other. Not only that, the company can also produce return on investment (ROI). So, according to target90% of businesses use email marketing to increase sales.

However, it should also be noted that there are several variables that need to be optimized so that ROI can be achieved, including the percentage deliverability. The success of the emails sent and received by audience has an important role in determining whether an email campaign can continue, because if the deliverability low, the reputation of the domain used will decrease and end up all promotional emails going into the folder spam audience. In addition, companies must also pay attention to Open Rate, Click Through Rate (CTR), and Interaction Rate.

In Return on Investment (ROI), The Direct Marketing Association (DMA) states that if email marketing give return worth 40$ for every 1$ spent. even , marketing channel others cannot penetrate it. In addition, B2B Marketing, also mentions email marketing proven to be more effective in increasing sales.

target through business report “The ROI of Personalized Marketing" also mention if email marketing can break ROI up to 3800% if segmentation and personalization is done optimally.

Disclosure: This article was written by Tasya Kania AC