CRM is the secret to increased ROI from Email Marketing

Tuesday, February 16th, 2010
Posted in Email Marketing at 3:13 pm by Jono

Email Marketing is one of the most effective Customer Relationship Management (CRM) marketing tools and can be used very effectively to improve customer perception of, and engagement with, your brand. Wikipedia defines Customer Relationship Management as:

“a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with customers and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales related activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new customers, nurture and retain those the company already has, entice former customers back into the fold, and reduce the costs of marketing and customer service.”

Of course to be properly effective, a CRM strategy has to be implemented across the entire business – from marketing, to sales, to support – messages have to be consistent. When CRM is properly implemented and is running efficiently, it has been shown to boost revenue, improve the customer experience as well as streamline the productivity and processes of ‘customer-facing’ staff.

It’s widely recognised that one of the best CRM marketing channels is Email Marketing. This is largely due to the ease with which emails can be customised on a large scale. Essentially, this enables a business to tailor email content to suit the interests and needs of each of the contacts in their database. This is achieved though gathering certain demographic and personal interest data either though surveys or perhaps previous purchasing behaviour and then providing the customer with content that matches their preferences. This kind of marketing activity allows the marketing team to target the best and most qualified leads for the sales team – thus increasing conversions.

In practical terms, this means that Email Marketers should write different content for each segment of their database – depending on how they decide to carve them up.

As an example, if your business sells holidays in Africa, you could find out if your subscribers have a special interest in a specific destination or activity. If someone has said that they are interested in SCUBA diving, it makes sense to send them content and promotional offers related to diving or coastal destinations. By tailoring their experience in this way, you increase the likelihood of conversions and sales.

Such an interaction with your business gives the customer a sense of personal attention and value-added service. This improves their experience and perception of your brand as you’re not spamming them with irrelevant information. In addition, because you are eradicating the clutter, there’s increased probability that your subscribers will actually open and read the emails you are sending them. This creates greater brand awareness and is also bound to increase sales.

Emails can also be used very effectively as part of the transactional process. Sending emails to inform customers of the status of their order can reduce strain on customer care or support services. This proactive approach also helps to reassure customers that they made the right choice in purchasing from you, and that their goods are en route.

Have you considered how you could use Email Marketing to increase sales and leads for your business?


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