02 Sep 3 Retail CRM Tips to Get More Leads
While CRM (Customer Relationship Management) software is a staple of the corporate world, too many Small Businesses aren’t incorporating the right tools to manage and keep track of their clientele. Key to making sure customers feel cared for by storing their contact and other information in a consistent directory, a CRM client can also help Small Businesses market to their existing customers, promoting special offers or targeting particular services to people based on their previous behaviour. This is something particularly useful in the retail sector, where customers often appreciate being targeted for special offers or when specialized or particular products are in stock – no surprise then that the average CRM produces $5.60 in return for every dollar spent, and often increases sales by up to 29%.
Retail SMBs Digitizing but not Automating
With that in mind, the following infographics from BIA/Kelsey give an assessment of SMB (Small and Medium Business) retailers which shows that they may not be doing everything they can do to increase sales and draw themselves closer to customers. While 81% of Retail SMBs maintain a customer list, only 61.1% maintain those customer lists digitally. While going digital is an important step, it still requires significant labor to care for customers with individual attention.
This is one way in which a CRM is useful. A CRM automatically digitizes and indexes customer information if its collected through places like a online form, while also enabling automated emails or messages and providing a place to track every interaction with every customer. This centralization is key to the advantage of a CRM. For instance, when most businesses take down a customer’s contact information over the phone, they’ll write it in a document or on paper. Often, the lists they are kept on can start multiplying, confuse the users, and get out of date, while offering no automated way to keep in touch. With a CRM, you can make sure you have the right contact information for a customer at all times, and regularly send out messages or reminders to ensure the information you have still applies.
SMB Retailers Allotting more to Digital Advertising without adding CRM capabilities
Not only are there gaps in how retailers manage customer information and automate interactions, but retailers are allocating more to their budgets for digital/online advertising than any other sector(including technology SMBs, those typically closest to the digital space). Here, Calls-to-Action and online forms can work with a CRM to quickly collect and incorporate customer information before they ever step into a storefront, but marketers still spend only $1 optimizing traffic conversion for every $92 the spend on traffic itself.
By incorporating the right CRM, retailers can turn their visitors into customers, and should begin to take the initiative – what’s the point of investing in lead generation if you’re not able to track how well it converts customers? The right capabilities added on to a CRM can assure that you generate higher conversion rates from the traffic your marketing generates. As you invest more this conversion rate can improve, instead of increased marketing without optimization, which generates plenty of window-shoppers but few actual sales.
Retail SMB loyalty programs perfectly suited to using CRMs
Along with saving time by automating functions and helping maximize digital marketing ROI, the loyalty programs practiced by Retail SMBs are perfectly suited to the capabilities of a good CRM. With 43.4% of Retail SMBs using loyalty programs (66.2% using rebate or credit programs and 30.3% using points programs), CRMs can help retailers focus on customers that may be close to their next reward and encourage them to make more purchases that appeal to them.
This can be accomplished by using tags, categories, aggregating customer feedback and just plain ol’ note-taking. Depending on customers to follow through with their own loyalty rewards is not enough, but when you maintain a close watch on their behaviour through a centralized CRM, you can prompt them at the right time with just the right offer. With 82% of Small Business owners saying developing loyal customers is the main way they grow their business, CRMs can be integral to track the behaviour of loyal customers and supplement the benefits of loyalty programs.
A word on choices
While the statistics show that SMB Retailers could do well to incorporate CRMs, especially considering the other behaviour they adopt to attract and retain clients, it’s important to consider the ROI of the given CRM you may choose. Too many are exclusively or implicitly focused on serving large corporate clients, meaning hefty fees and long installation processes, and if an SMB has only a handful of employees and limited revenue (as many SMBs do), then prioritizing low cost and easy set-up is crucial to incorporating a CRM. Also, consider what other services might integrate with the CRM of your choice, because when you set up your business for efficiency, there is no limit to how fast it can grow!
Visit www.agendize.com for more information on our range of products and services, all built to help your business grow. For more infographics on SMBs, their behaviour, and where they can improve visit http://www.biakelsey.com/Research-and-Analysis/Infographics/.