Tag: Customer Lifetime Value

The Market Segmentation Process And Its Role On A CRM Tool

Once you are creating a market segmentation process let us tell you that segmenting the market works wonders if you are capable of targeting the right customers. In fact, so much so that if you can send specifically targeted email campaigns, you can easily see more than 100 percent higher click through rates comp to non-segmented email campaigns, and so you essentially double your chances using the market segmentation process in your easy to use CRM software. Now it is not only advantageous for your business to tailor your campaigns, but in the present time customers also prefer personalized communications from brands and businesses.

Once you are creating a market segmentation process let us tell you that segmenting the market works wonders if you are capable of targeting the right customers.

Because CRM software greatly improves data accessibility, sales reps at companies using a CRM can shorten their sales cycles by 8-14% - Nucleus Research Click To Tweet

In fact, so much so that if you can send specifically targeted email campaigns, you can easily see more than 100 percent higher click through rates comp to non-segmented email campaigns, and so you essentially double your chances using the market segmentation process in your easy to use CRM software.

Now it is not only advantageous for your business to tailor your campaigns, but in the present time customers also prefer personalized communications from brands and businesses.

If you know what is CRM tool, you must also be aware that it is a software platform that houses a plethora of useful information with respect to your customer’s preferences, demographics, and the purchasing habits of your consumers that can be used to fragment your marketplace.

Hence any business CRM irrespective of whether it is an enterprise-level software or a Salesforce Alternative CRM most CRM offers segmentation and features like campaign management for targeting the best demography for business growth.

In other words, a market segment is a number of consumers that are grouped together by the marketers, which can be segmented using a cutting-edge business growth technology solution like a CRM tool, according to several criteria which can include the consumer’s needs, their purchasing habits, age, lifestyle, preference, interests and more.

Therefore as one of the most cherished vendors of cutting-edge CRM for small and medium business and startups here are the roles of market segmentation on CRM:

Redefining Market Segments

The marketing segments must be big enough to meet the financial needs of the company and the offering(s). Segments may be chosen based on demographics, the generation of the consumer, or geological location. For sales CRM, the segment must also be reachable by promotional means.
In most cases, business marketers have already selected and grouped the products market segments before the implementation of the CRM. Hence, part of the market segmentation process is a secondary form of market segmentation, with existing customers further segmented so that post-purchase promotions may be personalized accordingly.

Targeting Market Segments

Using the market segmentation process, marketers study the typical characteristics of the segment members to determine potential product features and to figure out how to reach the segment members. Different segments may be more prone to specific media types, such as emails, e-magazines, web pages, even television or radio. Marketers target market segment members by tailoring products and commercials to suit the needs and tastes of the segment members and then displaying the advertisements on the market segment’s preferred media channels for finding better outcomes.

Managing CRM Database

Easy to use CRM goes farther than initial segmentation and target marketing because the marketer has more information on the segment’s characteristics.
This extra knowledge comes from a consumer database full of information on customer preferences and purchasing habits. This information is collected as part of a company’s consumer transactions and sales activities. Some companies administer customer surveys and store the results in their databases. Other companies nowadays have membership cards that record every customer purchase.

Promote to Market Segments

CRM marketers take the information in the databases and create promotions designed to meet specific customer wants and needs. This further segmentation helps retain customers, and customer retention is vital to business profitability. Typical CRM promotions include customer loyalty programs, personalized action between customer service personnel and the customer, and the ability to customize the product to suit the exact needs of the customer.

Conclusion

Hence in a nutshell market segmentation process not only provides you with useful insights into customer behavior and attitudes by tracking interactions, collecting sales data, and analyzing trends among specific segments. You can send powerful marketing material to smaller groups who share similar traits, resulting in increased Customer Lifetime Value (CLV), stronger sales and higher engagement rates.

sign up

How Segmenting and Profiling Your Customers Can Increase Their Lifetime Value With Your Brand

CLV or Customer Lifetime Value is an index that has remained fairly untouched in the business world primarily because companies are still unsure about how exactly it fosters business growth and boost revenue over time. However, more than anything, calculating CLV brings about a pertinent change in the way organizations function, as it paves a golden opportunity for businesses to get ahead of the competition, especially if they are using CLM CRM software, which is the acronym of Customer Lifecycle Management CRM tool. This is because; your job does not end, once you have managed to successfully bring a steady flow of customers for your company. Rather your customer relationship starts right over here, as you now need a sharp insight into your customer base to identify your most important buyers by keenly observing their behaviors.

CLV or Customer Lifetime Value is an index that has remained fairly untouched in the business world primarily because companies are still unsure about how exactly it fosters business growth and boost revenue over time.
However, more than anything, calculating CLV brings about a pertinent change in the way organizations function, as it paves a golden opportunity for businesses to get ahead of the competition, especially if they are using CLM CRM software, which is the acronym of Customer Lifecycle Management CRM tool.

CRM software is now the biggest software market in the world and the growth isn't slowing down. In fact, CRM is now expected to reach more than $80 billion in revenues by 2025. Click To Tweet

This is because; your job does not end, once you have managed to successfully bring a steady flow of customers for your company.

Rather your customer relationship starts right over here, as you now need a sharp insight into your customer base to identify your most important buyers by keenly observing their behaviors.

Winning new customers for your business is indeed a daunting task that most businesses struggle with. However, on the other hand, engaging and retaining existing customers takes far less effort and resources.

This is where metrics like Customer Lifetime Value comes into play since this a metric in the CLM CRM software that analyzes existing customer base to find out who, when, and how will bring the most revenue for your brand and also help to evaluate the existing worth of your customers.

CLV is a metric that makes a huge difference to any business since equipped with this knowledge; brands find the ability to gear-up with their customer engagement strategies, which aids in improvising, honing, and doubling engagements with their high-value customer base.

The strategies for engagement that CLV can leverage through CLM CRM software includes the complete customer service processes that can be personalized to make your high-paying customers feel appreciated and stick with your brand for a long time.

Since by offering customized and prioritizing services to the customers of higher value it is not that you are not only making them stay longer but it also helps in increasing the customer spent on your brand.
CLV also drives marketing strategies in order to increase and improve engagements with customers of higher worth.

Therefore, with respect to increasing CLV, there are several solutions that work in tandem with customer worth for creating accurate engagement strategies leading to better conversions of the prospects with the help of CLM CRM software.

Customer Profiling

Customer profiling is an activity that enables businesses to store profiles of the customers that tells the story of every customer locked in the CRM database, which helps in sending the right message to the customers that match their individual preferences.

It is always easier to offer customized services to your customers when you are using an easy to use all-in-one CRM software solution that offers a 360-degree view of high-paying customers that can be evaluated and measured by a profiling system.

Labeling VIP Customers

To find the maximum revenue from your customer base with respect to their spending potentials, you need to distinguish between them with the help of a solution like CLM CRM software that lets you label high-paying customers like a VIP.

Therefore, performing this classification can help you to evaluate conversions every time using CLM CRM software solutions and offer special discounts and dynamic pricing to customers who are marked special on your CRM database.

Customer Segmentation

With the help of customer segmentation, you can divide your customer base depending upon their spending ability and take a dedicated approach towards each segment using the CLM CRM platform.

Dedicated Workflow

Dedicated workflow aids businesses to target customers with higher potential in every step along with your engagement and market strategies.

For example, you can set up a targeted sequence for each segment of your customer base like ad campaigns, and email campaigns that boost revenue growth.

Building Customer Loyalty

Customer profiling and segmentation provides you with a better view on how to improve the efficiency and speed of your customer service with higher lifetime value and avoid the dissatisfaction of the customers by introducing loyalty programs that helps in reducing customers churn and aids in holding on to high-paying customers for a longer time.

Conclusion

For calculating CLV primarily you require a 360-degree view of your customers, for knowing the worth of each customer in your CRM database, for which you need an easy to use CRM since it is hard to calculate the customer spent by manually searching for data which represent the worth of each customer, that help in boosting the lifetime value of your customer for your business growth.

sign up

4 Tips on Optimizing the Lifetime Value of your Consumers in 2018

In these times of dramatic change, it is more crucial than ever before to establish a strategic focus for your business. The way we see it, businesses need to set an unwavering focus on CLV (Customer Lifetime Value), which help provide the solid foundation that is needed to enjoy lasting growth and success in businesses. Looking through the lens of analytical and quantitative science, Customer Lifetime Value embodies the critical virtuous cycle that will build relationships and fosters customer acquisition in 2018.

In these times of dramatic change, it is more crucial than ever before to establish a strategic focus for your business. The way we see it, businesses need to set an unwavering focus on CLV (Customer Lifetime Value), which help provide the solid foundation that is needed to enjoy lasting growth and success in businesses.

Looking through the lens of analytical and quantitative science, Customer Lifetime Value embodies the critical virtuous cycle that builds relationships and fosters customer acquisition. CLV is, in fact, a guiding strategy that helped Amazon to grow into a powerhouse of market innovation.

Brands that provide the best experience throughout the customer journey accomplish higher levels of sales, retention, and customer satisfaction than businesses, which only focus on transactional touch-points- McKinsey & Company Click To Tweet

Here are 4 ways by which you can maximize Customer Lifetime Value in 2018 and for years to come:

#1. Get ready for customer journeys; do not count on just transactions

According to McKinsey & Company, brands that provide the best experience throughout the customer journey accomplish higher levels of sales, retention, and customer satisfaction than businesses, which only focus on transactional touch-points. Hence, companies need to examine the entire customer journey, find out the root cause and work across functional areas using advanced customer journey analytics to better understand their customer behavior across multiple touch-points over time.  Better insight and visibility from marketing to sales and service, across the entire customer lifecycle, provides businesses to break down the walls between internal silos and solve the biggest pain points that influence a buyer’s next step to achieve business goals such as new-offer acceptance or increased renewal rates.

#2. Engage customers through chat-bots and messaging apps

According to a survey done by eMarketer, it has been found that more than 1.4 Billion consumers use messaging applications such as WhatsApp, Facebook Messenger, WeChat and others and the number will scale up to 2 Billion in 2018. Hence, because of the ever-rising popularity of messaging applications, in 2018, chat-bots will play a pivotal role in improving customer experience and developing deeper relationships. More to say, now that chat application providers are allowing brands to use their apps to interact with the customers, brands are also using these apps for new consumer-interaction channels. Presently in 2018, it is assumed that because of advances in AI (Artificial Intelligence), NLP (Natural Language Processing) technologies, machine learning, brands must engage in a more meaningful and personalized way for providing even more helpful interactions with their consumers.  Therefore, with this latest type of “conversation-commerce” customers can now establish ‘chat’ with the brand representatives for obtaining customer support, get tailored recommendations, ask questions, read on the reviews and even make a purchase without having to leave the messaging application of their choice that they prefer to use.

More to say, unlike email interactions, AI-driven conversations are not disjointed as messaging provides a continuous thread between the consumer and the brand, which makes the flow of the interaction more akin to a dialogue that, facilitate tracking and management from either side. Therefore, with this more natural flow of interactions and conversations between support and sales, there are chances for greater opportunities to cross-sell and seek or share feedback on social media platforms.

#3. Gain tangible results from machine learning and AI

Although the words “machine” and “artificial” may imply and sound impersonal in their approaches and hence robotic, nevertheless with the rapid development in Artificial Intelligence technology, this advancement is actually helping several brands to deliver greater customer experience, and to a larger audience, something that we just could not have been able to do before. For example, by pairing NLU (Natural Language Understanding) with deep-learning algorithms, retail brands can now help customers to express their requirements naturally through Facebook Messenger-based chat-bots.  Retailers can now also create a size profile for any customer by presenting a browsable inventory of curated collections, which according to several market survey reports have shown nearly three times more engagement rates, compared to that what was found while using traditional inventory browsing.

Apart from this, top-performing AI-powered chat-bots can also recognize when it is the ideal moment to transfer the interaction to a live customer support representative. The main objective over here is to make this transfer as seamless and natural as possible. This way, brands can bring in human expertise for support related issues, when it makes the most difference.

While Bots and AI technologies are still in their early phases, in 2018, as bots learn more from user behaviors, they will evolve to create a more richer experience and therefore deliver better results for both brands and their consumers.

#4. Merge customer service and sales mindsets to drive revenue

To a customer, there is practically no distinction between sales and service departments of a brand, and so in this hypercompetitive market, the company cannot let their sales and customer support teams operate in silos in 2018.

Therefore, companies this year and going ahead on time, need to adopt strategies that help blend service and sales, by adjusting their evaluation metrics and incentive plans, and the key to achieving this is ongoing training.

Try ConvergeHub For Free

Takeaway

Hence, to conclude we can say that new data and better coordination between sales and service teams are the empowering factors that can only create more sales value in 2018. For companies that shall use AI, bots, advanced CRM (Customer Relationship Management) system, and messenger apps will be rewarded with higher customer lifetime values, greater customer retention rates, and profitability, rather than fall back in the race by just cutting on service delivery costs.

Wait! If you have 2 minutes to spare… leave a comment below letting us know what was your biggest takeaway!