Before you begin any major strategy project, especially one that is resource-intensive or requires costly software, you need to document why you propose to do it.
Setting up CRM strategy and software should be no different. So, we will start part 2 of this course by considering objectives and defining goals.
Drive Business Value With CRM
As you've learned already, CRM strategy is designed to increase the value of the relationship between an organization and its customers.
In the previous part of the course, we defined the metrics you can use to measure the number of people at each stage of the funnel and the quality of interactions. But what do you hope to gain with this project? What business value are you hoping to create?
Typically, most organizations will define improvement in business value in some (or all) of the following ways:
A higher percentage of conversion to paying customers from initial interest.
A higher average order value for each conversion.
Increase in the frequency of purchases.
Reduction of the time elapsed between customer purchases.
Churn reduction; reducing the number of customers who cancel their subscription.
Improved customer satisfaction.
A higher number of referrals from customers to their friends and family.
Improved efficiency within the organization, such as using the CRM software.
Your CRM strategy defines how you’ll meet these goals.
Let's Recap!
CRM strategy creates business value by increasing the value of customer relationships.
Some of the business value is created by increasing revenue from the customers.
The business will also create value by reducing the cost of selling to and supporting customers.
As you can see, each interaction between a brand and its customer is an opportunity to create business value. To learn how to exploit these opportunities, we'll now look at the specifics of CRM software.
