Definition and Principles
Continuous engagement.
The essence of Customer Relationship Marketing is the harmonious treatment of customers throughout their lifecycle. The equation is simple: give customers the consistent level of attention and treatment they deserve and they will reward you through increased loyalty and spending.
CRM recognizes that sales transactions are not discrete events, ending the moment a purchase is made, but form a chain of continuous engagement where a long-term “relationship” is formed between buyer and seller. The objective is to grow the relationship over time based on a fair value exchange: in other words, what customers get in return for what they give.
In today’s on-demand world the customer value chain can be broken in an instant by a bungled service encounter, an awkward response, an inappropriate offer, perceived apathy, a breach of privacy or by any number of other risk factors. That’s why every interaction must be a positive experience for the customer. And each successive interaction should always begin where the prior one left off.
A CRM Manifesto
Manage Around the Mean
Most customers are clustered around the performance mean. To become above average performers, they must be given compelling reasons to change past habits and buying reflexes.Define Treatment Rules
The job of marketers today is as much about rule making as it is about brand positioning. Those rules codify the treatment of customers at all touchpoints and serve to modulate the contact mix and frequency. They are also a practical necessity to support perpetual, “always on” service where customers expect to be instantly informed of their entitlements.Safeguard Trust
Even a momentary breach of trust can cause customers to withhold their opt-in consent and insulate themselves from further contact. Establishing an open reciprocal dialogue, where the pulse of customers can be taken regularly, builds an emotional barrier to exit.Encourage Participation
Since innovation is the key to longevity, brands need to cultivate a more democratic climate where customer ideas and feedback are openly invited and where brand advocates can easily exchange information amongst themselves.Track the Lifecycle
While knowing the current value of customers is critical, it may be just as important to measure the variability and the velocity of the relationship over time. At just the right moments along the way, marketers can intercede with appropriate actions to keep the momentum going.Stretch the Measurement Horizon
Marketers have to establish new and more relevant measures of success. Performance evaluation and ROI contribution should be based on longitudinal gains in key indicators like segment growth, churn and profitability.
