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Wednesday, 8 May 2013

Less is sometimes more

Some might wonder now what do I mean with 'less is sometimes more' in regards to CRM campaigns. Just like eating too much salt or chocolate, certain CRM campaigns can actually harm your brand instead of enhancing it. 

This can happen when the entire customer base always receives the same offers without any kind of differentiation in regards to their profile. On top of that, all the available communication tools as discussed in blog post 'Communicating Retention Campaigns' are used without considering what channel is actually preferred by the customer. Segmenting the customer database and deciding on how to communicate the offer to the various customers are vital steps when setting up a CRM campaign to ensure the best possible outcome for your business.

To make it a bit clearer let me give you an example how I would NOT recommend setting up a campaign. 

Just before Christmas, I ordered a wine gift set online. After completing the purchase, I agreed to receive some marketing material just to keep myself informed. Since the purchase, I have been receiving three to four newsletters a week, direct mailing material such as letters, vouchers and cards once a month and 4 months after the purchase I even got a call. All of the CRM tools used have not focused on my actual purchase and contained offers that did not interest me. Instead of segmenting the client base into frequent buyers, first time buyers, Christmas buyers only etc, one mailer with the same offer is set up for the entire customer base. Due to the fact that I have been bombarded with not to be missed offers, I get the feeling that the company is a bit desperate. On top of that, the marketing material is now seen as annoying so regardless how good the discounts actually are, the likelihood that I will even read the letter or mailer is slim.

In regards to the cold calling, this could have actually worked really well if the call had been made three to four weeks after the purchase and not four months later. The agent could have asked for some feedback in regards to the delivery, if I liked the wine, if I consider buying wine again for myself or as a gift etc, instead he read of a script calling me a loyal customer even though I am a first time buyer and offering me a discount on some wine I have never heard of. If he had asked me any questions, he would have found out that I am currently not drinking, bought the item as a Christmas gift and yes, would consider buying more wine as a gift in the future. Put that in the system, adapt the offers to my specification and by just doing that, keep me interested in the brand and ultimately encourage me to buy more.

If you want to discuss your up coming CRM campaigns, please do not hesitate to contact me.

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