Maximize Your ROI by Nurturing Leads, Retaining Customers, Remarketing to Them
Customer Relationship Management (CRM) solutions are the missing link to growing your business sustainably. While Search Engine Optimization (SEO), Search Engine Marketing (SEM), and Social Media Marketing (SMM) focus more on lead generation, CRM focuses more on lead nurturing.
Apart from cultivating prospective customers towards their first purchase, CRM also nurtures existing customers to encourage upsells, cross-sells and repeat purchases. It spans strategies, practices, and technologies adopted by companies to analyze and manage their customer interactions. Collectively, the three former strategies cater to customer acquisition and while CRM addresses customer retention for maximizing your return on investment (ROI).
3 Ways For More Sales
- Sell to more customers.
- Sell more to customers.
- Sell repeatedly to customers.
3 Reasons For Focusing More On Customer Retention
- Compilation by The Chartered Institute of Marketing in March 2010 revealed typical cost of customer acquisition is between 4 to 10 times that of customer retention.
- According to Market Metrics, probability of selling to existing customers ranges from 60% to 70%. In contrast, this plunges to merely 5% to 20% for potential customers.
- On average, existing customers also spend up to 67% more than new prospects.
Therefore, CRM helps retain more customers for longer periods, increasing chances dramatically for you to sell more of your offerings more frequently. Meanwhile, SEO, SEM, and SMM complement your CRM efforts by enabling you to sell to more customers.
Improving Customer Retention Increases Profits!
The value that customer loyalty brings is tremendous. According to one of the most widely cited study by Frederick F. Reichheld of Bain & Company and W. Earl Sasser, Jr. of Harvard Business School, “Increasing customer retention rates by 5% increases profits by 25% to 95%.”
Now consider the opposite scenario. Especially so for a company aiming for growth, losing a customer is an expensive business. Firstly, it means much of the acquisition cost for this customer had gone to waste. Secondly, any future opportunities to remarket to this deflected customer are lost too. Thirdly, the company would need to acquire at least two new customers without losing any existing ones in the following year to replace lost sales from the deflected customer and grow its customer base.
Business Processes Alignment with Customer Strategies Boosts Profitability and ROI
Differentiating the enablement tool from the solution is critical for CRM implementation success. A 10 years research at more than 200 companies across multiple industries by Bain & Company yielded this finding published in the Harvard Business Review: “CRM aligns business processes with customer strategies to build customer loyalty and increase profits over time.”
At Alpha ROI Pte. Ltd., we can help you achieve this, and more. By now, you would have realized that CRM is more than merely about which software or system to deploy. It is a means to an end goal – customer loyalty. Therefore, what is even more critical is aligning our business processes with the customer strategies to increase stickiness of customers to our brand, products and services. Furthermore, CRM complements SEO, SEM and SMM by maximizing the long term conversion of generated leads into actual customers through systematic, optimized leads nurturing processes.
Experienced business leaders and sales professionals know that the typical sales leads funnel is full of leakages. Since it is virtually impossible to have 100% conversion rates of sales leads into actual customers at the first interaction, it makes perfect sense to nurture and retarget these prospects lest they deflect to competitors when neglected. Additionally, your competitors may launch aggressive acquisition campaigns to poach your existing customers too.
Thus, a well integrated CRM system is arguably your best defense against marketplace competitive deflections, reducing sales leads leakages, buying you precious time to retarget and remarket to both your prospective and existing customers.
Marketing professionals frequently use Customer Lifetime Value (CLV or CLTV) as an estimate of present value of total sales you could generate from a person for as long as s/he remains your customer. Therefore, it is a good proxy to estimating your marketing costs, and analyzing the effectiveness of your customer acquisition and retention strategy. As enhancing customer loyalty increases the remaining customer lifetime with your company, it improves the CLV you could derive. Imagine how much this will in turn boost your company’s profitability and ROI.
Companies and SMEs choose Alpha ROI Pte. Ltd. because when assessed to be feasible, we could help
- Customize a solution to assist you in achieving your business objectives.
- Optimize business processes for client strategies alignment, translating into actionable steps to build loyalty.
- Automate execution steps for greater effectiveness and efficiency to enhance productivity.
- Adopt an integrated multichannel approach to support our clients across your customer value chain in leads generation and cultivation. This enables you maximize your return on investment (ROI) by increasing the percentage of generated leads that translate into actual sales.
Have a few minutes to spare? Call +65 8291-8088 now for a non-obligatory CRM solutions consultation or contact us using the enquiry form on this page.