What makes a successful CRM strategy?

VOL. 0045 – FLORIDA, MONDAY, MAR 04, 2024

Juan F. Arjona Harry

President & CEO Strategee   

The implementation of a CRM strategy is always accompanied by a huge expectation to see sales grow and above all, the customer loyalty. Every time this strategy is shown in a corporation, the expectations for superior performance grow.

Implementing a CRM strategy involves working on several fronts at the same time, ensuring that each one of them is designed correctly and runs in the correct way. But in reality, it is not uncommon that companies that implement a CRM strategy commit some mistakes that ultimately affect the result of this vital marketing strategy.

Below we present some of the most important issues surrounding the successful implementation of a CRM strategy:

1. The beginning of all should be to obtain what is called Customer Lifetime Value, which is the Strategic Value of Customer or the individual profit of each one of the customers in a time horizon or even lifetime, including the Churn Rate. This requires the design of a complex customer evaluation algorithm including quantitative, qualitative and forward-looking variables.
   

2. Following its acquisition, should be applied segmentation rules that are unique to CRM and allow segments to have the following conditions: 2.1 Segments quite crystallized -consistent- internally within themselves. 2.2 Different Segments.
   

3. After obtaining the customer segments by value, we proceed with the design of Relational Marketing Strategy, which will include the following steps: 3.1. The retention plan design or plan points / miles-this-to be successful, must include a very good design: 3.1.1. Gratuity rate. 3.1.2. Redemption rate. 3.1.3. Design of incremental points. 3.1.4. Design of double points. 3.1.5. Design of triple points. 3.1.6. Design of alternatives based on the marketing of frequency.  3.2. The design of the privileges and preferences matrix (this includes service agreements). 3.3. The design of the alliances matrix. 3.4. The design of the customization matrix. 3.5. The design of the client communication matrix. 3.6. The design of the budget for output contacts.
   

4. Then, the indicators that measure the Relational Marketing Strategy management should be designed.
   

5.  Design the key aspects of the front end of the CRM software application specifically designed for the process and the functions that the software must have (do not use open source applications, as its scope is too limited). With the possibilities of the world today in terms of software design, is far better and more useful a custom made software application.
   

6. Then the development and testing of the CRM software application.
   

7. Training in the use of the CRM software application and in the administration of the strategy.
   

8. And finally begins the new life of the Corporation using this vital CRM strategy, which almost certainly will bring many benefits.