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CRM: How much is too much?

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11 June 2014

CRM: How much is too much?

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Short answer: anything that your database either ignores or is actively irritated by is too much.

Generally, the cost of winning a new client is 2-3 times the cost of retaining an existing customers, so maximising the value of your CRM system is crucial. Reaching out is only worthwhile if your customers are receptive to what you have to say. Otherwise, the effort is wasted.

You should be using your CRM system to connect to people:

  • At whatever time they’re most likely to pay attention;
  • Via the medium they’re most likely to engage with;
  • With a call-to-action that’s most likely to prompt a (positive) response

The particular CRM system your office uses isn’t important; if you actively maintain it you can use if to market efficiently and effectively. 

Don’t simply use your up-to-date database to bombard contacts with marketing collateral. It’s  a strategy that’s more likely to annoy than win business. Use the data gleaned from your CRM to be judicious and strategic with your marketing efforts. Sending out fewer marketing messages can be more effective if you’re reaching out at optimal times to offer something of value. Use your CRM to pinpoint the most efficient ways to market to your database. The data you collect can also determine what offers and message your clients will respond best to.

Get the timing right; someone’s who’s just moved into a new house isn’t going to pay attention to messages prompting them to call for a free appraisal. They know what the house is worth – they just bought it. A far more effective strategy is to offer something that will enhance their recent property purchase, like a newsletter with tips on home decorating and local restaurants. Not only are you delivering a message that has value to the consumer, you’re keeping your brand top of mind for down the track when they are thinking of selling again.

The average person is blasted with thousands of advertising messages every day, and they’re adept at screening them out. Your message needs to be compelling; if it isn’t, it will just be background noise. One way to do this is to use your database for high-level brand-building and sophisticated communication. Methods like generic call-to-action emails will be regarded as spam; addressing a customer personally is more likely to be noticed. Contacting them with particular messages at particular times can also work – wishing them a happy birthday on the right date, or celebrating the anniversary of when they moved into their home. If possible, offer something alongside it, like a voucher for a local cafe. 

Another way you can use your CRM to market effectively is to take note of opt-outs and lack of response. If your marketing materials aren’t generating a reaction at certain times, it’s a clear sign you’ve missed the mark. And take note of when people say they don’t want to be contacted, and respect their request. Continuing to send them emails or newsletters is underhanded and devalues your brand.

Making the most of your database and can mean maximising your brand’s impact while sending out fewer messages, because the ones you will send will be better timed and more favourably received by your customers.

Which CRM do you use and how do you get the most out of it?

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