In the second instalment of this five-part series, social marketing and e-commerce expert, John Lawson of ColderICE, discusses CRM, the second aspect of the Five Fingers of Death, and how you can best utilise it to crush your competitors.
Welcome to the second instalment of ”The Five Fingers of Death’, in which I will be discussing Customer Relationship Management (CRM). What does it encompass and what are the key tips for CRM best practices? How important is CRM for e-commerce businesses and why do so many businesses lag behind?
Customer Relations Management
CRM really encompasses the whole lifetime of the customer’s relationship with you. This lifecycle starts from the first time they buy from you and ends with the last time they buy from you. What you want to do is use the customer relationship to actually bring them back to you more times during that lifecycle so you will increase the buying frequency of the customer. You use CRM so they will jump in and begin buying from you more times during that lifecycle and you want to actually extend that lifecycle. You want the average timeline of the customer lifecycle to be greater than it once was.
Social media is a great tool for actually getting into a relationship with your customer. That is important because people buy from people they know and trust. So as they understand you and you begin to understand them, synergy is created, because now, you are connected as humans. Once you make that human connection, you can tell your customer what is going on in your business, what is on sale, what goal your company is moving towards, and what new products you might have. Your customers are more receptive to that information because you have built a meaningful relationship using some of these social marketing tools.
Good CRM for e-commerce is very important. Remember that in e-commerce, we are not the guy around the corner, we are a guy on the computer and you have got to really build a relationship with the customer so that your business does not lag behind. Why are so many businesses not aware of CRM and the possibilities that social CRM affords them? I think it is really because they haven’t thought about how we can listen and communicate, how social media allows two-way communication as opposed to one-way communication. It’s no longer me yelling at the world to tell them that there is a new product available. Instead, what is happening now is that people are saying “I need something” and as a vendor, I know I have that product that they need.
So I’m not needing to just yell it out, I’m saying “Hey Bobby, wait, here is the product you need” – and that makes all the difference.
To learn all about the first finger of death – sales – please click here.