CRM Systems and Customer Loyalty Programs by Market Action Research
(Last Modified: March 24, 2021, 8:46 p.m.)
Customer relationship management, also referred to as CRM systems, are programs that aims to deliver the type of relationship a customer is looking for from a company.
This is accomplished by improving customer-to-company relations, increasing sales generation, and building trust and loyalty. These types of relationships can be generally categorized as relational and transactional. In modern times, these types of systems are accomplished with the aid of technology and marketing professionals.
Many of these programs have become digitized and are available as software and cloud-based systems, for example SalesForce, Zoho, and much more. Each of the CRM systems offers different features and some even focus on specific industries, such as financial companies, managerial organizations, and many others. In other words, choosing the best CRM system for your business is circumstantial and varies based on your company’s individual needs, systems, data field requirements, and technologies.
For some companies, the systems out there are great but there are many circumstances where a custom CRM system is needed to accommodate your businesses needs. Some organizations in the real estate industry, retail businesses, non-profits, and many more find that a custom CRM solution is the only way to keep track of their customer unique customer interactions. Additionally, some companies do not want to deal with determining which one will be the best, which ultimately can stagger growth. Smart companies will consider hiring a professional technology consulting firm, like Market Action Research, to help determine the best technologies for their companies by tapping into years of experience in technology.
Measuring customers’ expectations and overall satisfaction is important for several reasons. Expectation confirmation refers to a simple model of customer satisfaction that suggest that customers’ satisfaction is directly linked to customers’ expectation. Generally, a customer will be satisfied when their expectations are met or exceeded.
Thus, if expectations are not met than a customer would likely be dissatisfied. In this model it is reasonable to conclude that a customer will be extremely satisfied when a product or service goes far beyond their expectations. As a company, it likely your goal will be to aim to exceed customer expectations by developing an effective customer relationship management plan that takes into consideration the expectation confirmation model. This is also an important consideration when determining what metrics your business should seek to measure and monitor in a CRM system.
Having a customer repeatedly make a purchase is one of the key aspects of any business’s success. Thus, it is an unwritten law of business to find ways to attract your customers to buy again. Loyalty programs are a great way for companies to reward customer behavior that they want the customers to repeat. A loyalty program, also referred to as frequency marketing, is a systematic approach using a formalized enrollment process that is used to encourage repeat purchases and reward customers with benefits for purchasing.
There are so many ways to keep customers loyal to a brand and make a repeat purchase. Some companies focus on giving their customers points for purchases that can later be redeemed for discounts and rewards. This is a really popular practice for retail stores, restaurants, coffee shops, super markets, convenience stores, and gas stations. For instance, Starbucks has a mobile application that allows customers to purchase coffee, tea, and other Starbucks products. The Starbucks application itself acts as a digital wallet and customer profile. It is also a way for the company to notify customers of promotions and other announcements. As a customer, you receive points or what Starbucks refers to as “stars” for making purchases. Once a customer reaches a high enough level of points, the points can be redeemed for a free beverage, flavored shots, food items, and other merchandise.
Other companies utilize a tier-based system that gives their customers benefits and rewards for spending more money or frequently making purchases. For instance, airline companies such as American Airlines, have reward programs that give their customers frequent flyer miles for making purchases and flying with their airline. As an American Airlines customer, you can be treated to complementary upgrades, lounges, and receive other special perks if they accumulate a high enough level of points within a calendar year. This practice is also noticeably popular with credit cards offered by American Express, Mastercard, Visa, and others too.
These are just a few loyalty programs that companies use to keep their customers loyal to their brands. As a company, it reasons to seek a way to set yourself apart from their competition by offering a reward program that matters to your customers. In many cases, the success of these programs relies on conducting market research studies, as well as, analyzing company and industry data. Simply crafting a loyalty program does not automatically constitute success.
There are so many things to consider when you are building a CRM System and loyalty program for your business. Hiring the right web and marketing agency can save you a ton of time and money. Market Action Research has years of web and marketing experience and can show you what works and what does not work. We can help you save time in navigating all the technological choices and while finding the best fit to make your business processes even more efficient and effective regardless of the solution.
The Market Action Research involves taking a deep dive in learning and understanding your business and industry. The MARS team takes prides in truly uncovering and understanding what will give your business the greatest competitive edge. Since 2011, we have completed the most complex projects from full warehouse automation, working with banks, traditional brick-and-mortar businesses, e-commerce companies, real estate websites, and so much more.
Originally Published: March 23, 2021, 1:51 a.m.