3 Ways to Boost your Marketing Campaign's ROI

According to research by Gartner, the spending by marketing on CRM solutions is steadily changing - 21% of CRM spending in 2009 versus 16% in 2000. More and more CMOs (Chief Marketing Officers) are realizing the value of an effective CRM solution as a social networking tool and for managing mobile campaigns.

There is an old adage in business that it costs more to attract one new customer than to retain two current ones. The Harvard Business Review found that a five (5%) increase in customer retention could boost profits anywhere from twenty five (25) to eighty five (85) percent.

So, what does a company have to do to maximize returns on marketing spend? - Run campaigns which increase customer loyalty and attract select new customers most likely to become loyal.

First, the company and its brand must become customer-centric. The world today is becoming increasingly collaborative and co-creating products with customer inputs is becoming a necessity. Social media has the ability to fortify or to damage a brand in record time - with the click of a mouse any news about your brand and the company behind the brand – be it good, bad or awful – spreads like wildfire.

Understanding the Buying Behaviour of Targets
In any industry, be it retail, manufacturing or services, the key to success is targeted relevant information delivered through effective channels. CRM solutions by their very nature are about building relationships with existing customers, all the while identifying those characteristics which make a customer loyal. In turn, this information can be applied effectively to campaigns which attract new customers.

Marketing automation in a CRM solution provides the ability to capture the complete purchasing history of current customers. Providing insight into their behaviours, needs and preferences allows for targeted campaigns at optimal times.

Knowing what the customer’s preferences, behaviours and needs are also enables the planning and production of marketing campaigns faster and the ability to execute them quickly. Through on-going display of results and analysis of those results, campaigns can be tweaked once they are initiated, based on customer feedback. As brands mature the buying behaviours of their customers mature as well. The analyses of these more mature buying behaviours allows customer segmentation to determine how marketing efforts need to be adjusted.

Social and Personalized Channels
In a collaborative environment, email and social media are vital ways in which companies can cultivate their customer relationships. However, misuse of either of these outlets can significantly damage customer relationships as well.

A CRM solution can be used to personalize messages, send them at optimal times and even identify potential customers. Most important, is the ability to use inbound communications from the customer to trigger the targeted outbound marketing efforts. In each case, however, it is critical that management understands the power of the media used. If using social media, there is a required recognition that it will impact not only on current and potential customers, but may spread virally to those not intended to or interested in becoming customers. If email is overused the customer may discontinue the electronic relationship or may simply ignore the communications.

CRM also allows for the integration of marketing and customer loyalty programs. Recognition of action with immediate reward provides increased opportunity for retention of current customers.

Analyzing Effectiveness
The marketing automation component of any CRM solution enables the identification of campaigns and promotions which have been successful and which have failed. Comparing campaign ROI with expenditure generated through the CRM solution can provide useful insights related to profitability and help determine a new strategy. It also identifies trends in the marketplace and customer spending patterns. By analysis of this information, targeted campaigns and channels can be identified. In doing so, marketing dollars can be allocated more effectively – running only those campaigns likely to have the highest return on investment.

To summarize, campaigns driven by an effective CRM solution provide improvements for-
  • Customer communication 
  • Customer service 
  • Customer recognition
All of these points can lead to improved customer retention and profit.

1 comment:

  1. Social and personalized channels, understand customer behavior & analysis effectiveness using these tips you can boost sales . This is nice post.

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