Let’s face it, historically CRM and loyalty marketing has been the dowdy cousin to the more ‘glamorous’ streams of marketing. But in today’s fast-paced economy, efficiency is paramount and CRM drives efficiency.
What other channel can deliver an ROI of 50:1 in a matter of months?
With ever-changing customer wants and needs, coupled with pressure on marketing budgets, the ability to make agile, results-based decisions on how and where to focus your efforts for maximum effect has never been more important. This is exactly where CRM’s strengths are rooted and why brands should absolutely be embracing CRM in 2022.
Hubspot reports that 40% of companies don’t use CRM at all. Here are just five of the numerous benefits that those companies are missing out on:
1. Always answering ‘what does it add to the bottom line?’
Every piece of marketing should be able to answer the question ‘what does it drive to the bottom line?’ and every marketer should have a view on how well a campaign has performed.
An old colleague of mine used to say ‘no measurement – no marketing.’ In many ways if you have no measurement, what’s the point in marketing?
CRM allows you to link any piece of activity to a specific outcome. It’s about data-driven results, and therefore it can always answer how it’s driving the bottom line.
2. Categorically-determined results
CRM allows you to categorically determine the result of your activity in a way that other forms of marketing cannot. This is a timeless benefit, but in today's environment efficiency is more important than ever. Economically brands and marketers are under pressure and customer needs are changing rapidly. Marketers need to be incredibly confident that they’re putting budget behind the right campaigns. Categorical results give brands and marketers that confidence.
3. A test and learn mentality, real time
CRM allows you the opportunity to course-correct along the way. This test and learn mentality is incredibly valuable and allows you to respond to how your marketing is being received by its intended audience, in real-time. Test and learn provides brands with deep insights into customer needs and behaviour and can dramatically improve ROI.
Marketers can use CRM to take a concept and prove it rapidly, giving them the power you to quickly decide if they’re assumptions were correct and if they can scale on the back of the results.
4. Fuelled creativity
There seems to be a myth in the industry that CRM and first party data stifles creativity, but this couldn’t be further from the truth. Data can be a creative superpower. The knowledge that this deeper view of the customer can give you means your creative is rooted in a real knowledge of who your customers are, what they want and what resonates with them. This is then overlaid with the ability to cut through using relevant personalisation. CRM also gives marketers the permission and validation to take a number of great creative ideas and test them to see which one actually drives results. Data should be seen as a guiding light not a restriction.
5. Reduced costs
All of these other benefits feed into reduced costs. The way CRM allows for optimisation and efficiency means far less wasted spending. The proof that any campaign is or isn’t profitable is sitting there in the data.
It doesn’t always have to be CRM. A wider marketing mix gives you long term brand impact. It’s about a combination - one without others simply just isn’t as effective.
CRM may be seen as the less sexy side of marketing, but the possibilities are incredibly exciting and businesses able to embrace CRM in 2022 will reap the benefits.