You've probably heard the saying "Money doesn't grow on trees" growing up. While this of course isn't true, we believe it grows within your database instead.
Gartner says: "80% of your future profits can come from 20% of your current customer base" - having an effective CRM system is a great way to make sure you're reaching these customers. In this blog, we'll discuss where this 20% might be and how you can use an effective CRM system to discover and nurture these customers.
Your Current Customers
The truth is, repeat customers spend 33% more than new ones - due to their increased buying confidence. CRM systems are a great way to help you nurture these relationships and turn them into lifelong repeat customers.
This is CRM at its finest - customer confidence in your product or service. We also find that the probability of closing a deal with an existing customer is typically 60-80% as opposed to 10-30% for new ones, meaning our return for the same pre-sales work is somewhere between two and eight times higher.
Consider this: According to the Gartner Group, 80% of your future profits will come from just 20% of your existing customers.
It is to these customers we must apply our retention resources. These are the customers we need to understand, model, and replicate - If you'd like to read more on Ideal Client Profiles, check our blog on the subject!
Reduce Costs - Increase Profits
One of the best ways to reduce costs and increase profits is to retain your current customers. CRM systems - particularly Intergages - are designed with this idea in mind.
By retaining and nurturing your current customers, you're not only saving on the costs of acquiring new ones but also building that trust and rapport with your current customer base. Recruiting and retaining the right customers, for the right reasons, is where long-term profits lie.
As B2B businesses our resources are finite and, while all customers are important, not all are equal. We believe in allocating your precious and finite resources proportionately to the lifetime value of the customer.
There are three pillars to understanding the value of your client base: Ideal Client Profiles, Spend Potential, and Relationships. If you'd like to read more on customer lifetime value, ideal client profiles, and acquiring and retaining the right customers for your business, head to our blog. We have articles on each of the respective topics!
As mentioned previous, The Gartner Group says "80% of your future profits will come from just 20% of your existing customers" - using Ideal Client Profiles within your CRM system can help you discover where these 20% might be, based on; Industry, size, influence, culture, ambitions, values, situations, and attitudes. Once you discover the 20%, you can nurture these clients accordingly, building the relationship and increasing the likelihood of them becoming lifelong, loyal, and repeat customers.
Key CRM Benefits
CRM software can be a huge asset to any business but it's not just the software that businesses need, it's the benefits the software can bring.
CRM software can improve; access to customer data, relationship management, interaction management, lead management, customer satisfaction, customer service, forecasting, retention/lifetime value, workflow standardisation, and customer acquisition costs.
We want to focus on lifetime value, access to customer data, relationship management improvements, and customer service/satisfaction, to increase the potential of repeat buyers.
CRM systems with these key assets can assist you to identify the right customers to nurture and market towards effectively.
So while money doesn't grow on trees, using a CRM system to improve these things for your business can greatly increase repeat sales - improving your relationship with these customers, understanding their lifetime value to your business, and providing them with the best customer service possible.
An Integrated System
Having a CRM system integrated with your website and marketing automation software can assist your customer retention, satisfaction, and future repeat sales. With your website and marketing automation system connected to your CRM, it can automatically log page views, email views, and interest in specific downloaded content.
You can then use this information to further grow your relationship with a current customer, build trust, and produce targeted marketing campaigns relevant to the individual.
Having this information automatically logged can, for one, save your salespeople time in manual processes, and more importantly highlight those in your top 20%, who are responding best to marketing campaigns and what products they may be interested in repeat-purchase.
Money grows within your current customer database and identifying ideal clients, nurturing them, and providing the best service possible can lead to repeat sales and an increase in profits. Help your customers through their buying journey with customised, targeted campaigns and build trust and buying confidience on the way.
Want to know more about how an effective CRM system can benefit your business? Check out our CRM blog for more information!