Have you ever walked into a store where you frequently do business, and when ringing up your purchases, had the cashier ask you what ZIP code you live in?
Chances are, the business was trying to figure out where its customers are coming from, to see if it should expand to one city or another. For some companies, this is part of the data gathering that goes into determining whether the business is ripe for franchising as well.
Knowing where your best customers work and live is essential for boosting your profits. This is why so many savvy business owners and managers come to use customer relationship management or CRM software.
Power Your Business with CRM
You build a database of customers and leads in your CRM, asking each person for their contact information upon first encounter with your company whenever possible. You might capture this information online in a form that you ask them to fill out when visiting your website. Or, a customer service representative types it in while on the phone with the new customer.
Power Your Business with CRM As you add more data to the CRM, you will be recording a history of customer/client interactions. With analytics, you can go through all the information to see which customers spend the most or how often, which customers complain the most or otherwise need more hand-holding, and so on.
Let’s say that 30% of your traffic was coming from a city 25 miles away. This could be an indication that this location has more people living or working there and who would do business with you if you were closer. You’ll now have more support to consider opening a new branch there.
A CRM can show you which customers haven’t made a purchase in x number of months, which you could then target with coupons via email to encourage them to do business with you again (with a limited time offer to motivate them to action).
Likewise, you can use the CRM to generate a list of your top customers. Now it’s easier to reward these big spenders for their continued patronage, such as by targeting them with a free upgrade in service or a gift.
If researching and comparing software is not part of your skill set, that’s not a problem. You can partner with marketing professionals who know the ins and out of using CRM tools and rely on their guidance concerning which application would be best for your company.
This will include helping you decide whether to use a standalone CRM application or one that you access over the Internet via cloud computing. To learn more about using CRM in your business or to get help with analyzing all the data, please feel free to contact the marketing professionals at 12AM Agency today.
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