Company 2: New Customers, Ltd.
Our second company manufactures an absolutely incredible product. As a matter of fact, you’ve almost certainly heard about it on the radio or TV, and if you’re like most viewers (to believe the polls), you probably found their Superbowl ad among the funniest of the year.
On the other hand, that jingle has gotten pretty annoying, hasn’t it? Because New Customers, Ltd. is dumping almost all their customer acquisition budget into expensive traditional advertising. To be fair, it’s not as though they haven’t gone digital; they spend the remainder of their budget buying as many sponsored ads on Google as they can afford.
Yet somehow, for all this money and effort, their customer acquisition cost keeps growing year over year… while their conversion rates, if anything, are slowly declining. After a careful analysis, they determine that there might be more cost-efficient ways to convert new customers.
A reality facing any business is the ebb and flow of leads over time; sooner or later, investing in actively acquiring more becomes necessary, which can become very expensive. This is why the cost of acquisition is a major KPI for every industry.
But there is a very simple way to lower, and even minimize these costs. The answer is the sales, marketing, customer and support data that already exists in your database. If you know how to organize and view that information properly, you will find incredible insight into your client base, your target audience and the greater market.
The problem, of course, is organizing and viewing all that data efficiently. When you may be dealing with millions of individual records, the human effort required to compile accurate reports would be astronomical.
Why Use a CRM? Personalization is key in today’s market, and a CRM provides the data necessary to customize experiences, improving customer satisfaction and retention.
Benefits of Using a CRM: Customer Relationship Management (CRM) systems facilitate improved communication among team members, resulting in more efficient internal processes.
Are CRMs Worth the Investment? Yes, customer relationship management systems are worth investing in. With the ability to provide extensive data, a CRM assists in making strategic decisions that can lead to increased sales and market expansion. If you know how to organize and view that information properly, you will find incredible insight into your client base, your target audience and the greater market.
A CRM places all this information at your fingertips: custom dashboards offering deep analytics that help you laser-point acquisition efforts and reduce unnecessary overhead. With remarketing tools such as nurture drip campaigns, automated reminders, centralized contact information and escalation insights for your sales team, you also minimize opportunity costs on leads that might otherwise be lost.