Customer Relationship Management (CRM) is all about retaining customers. Customer retention is a cost effective and profitable strategy and based on the 80/20 rule (80% of your sales come from 20% of your customers) it is vital that you look after your customers. CRM is not just a marketing approach, it’s for the whole company to apply.

It is an approach that benefits SMEs, as smaller organisations are more likely to have a more intimate relationship with their clients, regular contact, face-to-face meetings, phone calls. Unlike larger organisations which can become ‘faceless’.

However, the foundation for effective CRM is a detailed client database. This can be developed using off-the-shelf CRM packages or provided by a specialist software design company. But by keeping track of personal information and indiidual preferences of all customers, businesses can provide better service and value.

By implementing a regular customer communication programme – of positive messages, special offers, introduce a friend incentives or discount periods for example – companies can increase their customer retention rates, achieve repeat business and, through referrals, obrain new customers and increased sales.

It costs 6 times more to attract a new customer, than to achieve repeat business. So bringing new business in through the CRM route is much more cost effective.Some strategies you could consider are:

1. Welcome letter/pack
2. Thank you statements
3. After sales satisfaction questionnaires
4. Effective complaint handling
5. Introduce a Friend – referral scheme for existing customers
6. Membership/points building cards
7. Birthday acknowledgements & coupons
8. Special preview events for existing customers

The key to successful CRM strategies is integration across the company and complete buy-in from every employee/department.

The second most important element is to establish a ‘calendar’ of communication – emails/e-newsletters, postcard drops, etc – that you measure, and adapt as required, based on feedback received – but be consistent and professional in approach, regular in your delivery by whatever medium and above all, make it relevant to your customers.

Price is not always King. If customers feel they are valued, they will happily pay a little more for the service/experience they receive.

How to plan your Marcoms

Businesses use a range of marcoms tools to promote their companies, products and services. They include:

• Brochures
• Mailshots
• Websites
• Advertising
• Sales promotion
• Exhibitions & events
• Public/press relations
• Personal selling
• Social Media

They can be used individually but are most effective when used in combination. To develop a marcoms campaign, you need to consider:

What your objectives are.

I.e. increased awareness, new product launch, break into new markets, and consider the various marcoms tools available to you.

What is an appropriate/affordable budget.

What do you want to say about your product/service.

Consider your Unique Selling proposition (USP) what makes you different from the competition?

Who do you want to communicate to (your target audience)

Focus on the main benefits your product/service offers customer

and explain clearly in short words or sentences, no jargon (and remember contact details (address, telephone, website)

Think about what images you need to use to support your message

and how you want your communications to look/feel i.e layout, design, colours, photography, graphics

Talk your ideas and messages through with a designerto develop a brief

(see Writing a Design Brief article) and get feedback/guidance on what format it needs to take/what options are available.

Provide 2 or 3 designers with a Design Brief

and ask them to quote for the design and print requirements of your project. Ask colleagues for recommendations or find local service providers online, check their ratings, testimonials , contact past clients etc.

Review concepts and costs

provided and select what you feel best represents your needs/ideas and develop with selected designer

Proofing is critical – and errors at final proof stage can be costly.

Put yourself in the customer’s position and walk through the advert or literature etc from their perspective. Consider the process they need to take, the details they require to follow through, contact information etc. Check contact details, colour representations, image quality etc.

Allow time for printing – preferably 10 working days from sign off.

Be consistent in your messaging, your brand and your design.

Measure your success.

Consider what processes you need to put in place to be able to  measure the effectiveness of each medium used, so that you know what delivers the best ROI.

Marketing Matters is now in Livingston!

As well as being very business with existing and new clients, we have just project-managed our own office move.

We are now in new, larger premises at Unit 2, Turnbull Way, Knightsridge, Livingston EH54 8RB which will allow us to grow the company even more…

We look forward to welcoming you to our new office

Quality Scotland is an organisation which promotes business excellence and the sharing of best practice.

Quality Scotland has the expertise, products and services to stimulate continuous improvement within the business environment and engaging with Quality Scotland represents a commitment to organisational excellence.

Earlier this year, Marketing Matters won the contract for the design of the programme for the  Scottish Awards for Business Excellence 2010 – through Quality Scotland.  So well received was this, that Marketing Matters succeeded in a pitch for the organisation’s quarterly magazine – Excellence Now.

To find out more about Quality Scotland and to access the magazine, go to www.qualityscotland.co.uk now.

Marketing Matters has just completed a new, WordPress-based website for one of Edinburgh’s leading public relations consultancies – Acumen.

Working closely with clients to identify the right target audiences and the correct messages for those audiences, Acumen delivers innovative and intuitive PR strategies that generate the results their clients require.

Their service offering includes public & media relations, media training, online PR & Social Media, Crisis Management, Event PR & ExpoPRess, internal communications, communications audits and Public Affairs  & Parliamentary Monitoring

Find out more at www.acumen-pr.com – and make sure to check out their blog – The View -  it’s all good!