How Does CRM Value a Small Growing Business Looking for a New Market?
How do companies determine who to target? They likely use research, and the smart ones use analytical research. CRM stands for customer relationship management. The term implies that the systems are used to interact and build a relationship with the customers, and that is a part of it. But, perhaps the greater use is market segmentation.
Correlating Data
The CRM system will track various habits and attributes of all pertinent customers. That information is vital for making future business decisions. The information is extremely valuable as a tool for determining who and when to target certain groups. Here is a very straightforward example. Two pieces of data ae tracked and compared. This is the age of the buyer and the amount of items (including total price) they purchase in a single order. The data details that the most common customer age is 17. But, it has determined that 30-year-olds spend the most amounts per order. Salesforce.com is a great resource for learning what CRM information is providing, and what kind of clues it can offer for future action.
What Does the Information Say?
What does the information note? Firstly website marketing, it suggests two distinct demographics divided by age. The first is the eager 17 on a tight budget. The second demographic is the likely higher-income earning 30-year-old. The company will further research what items they are buying. The 17 may be buying a cheap item. The company can increase the price of the cheap item to see if sales from 17-year-olds go down. They can subsequently start providing package offers for the 30-year-old buyers who are already buying a larger quantity of items in one swoop.
The system can be tweaked and explored as deeply as a company wants to. But, it offers a platform where data can be easily measured. The result is a stunning organization of the best features of data management.
An obvious issue arises from this mind-bender. What decision is the right one? It is not easy to assume that the cheap item’s price should be raised. What if that alienates the young buyer? CRM consulting can help read the metrics of the CRM system will also offering the most logical course of action. My Sales Butler is an intuitive resource for navigating the minefield of market segmenting. A lot of time can be saved by using my sales butler and their platform for measuring and responding to customer demand.
