This article is for anyone who is wondering whether they are well positioned in the area of CRM for 2019. We have conducted a study on the current situation in German companies, which you can use to assess the situation in your own company. A lot has happened in this area in the recent past.
Less than 5 years ago, sending the same email to your entire customer base was standard. Today, new technologies such as increasing automation allow us to manage customer relationships in a much more personalized way. This is made possible by artificial intelligence or big data solutions that can predict customers' future needs and expectations through a careful analysis of their past and present interactions.
In May 2018, the introduction of the GDPR (General Data Protection Regulation) brought another factor that has shaken up customer relationship management and changed the behavior of marketing professionals. Since then, many companies have been wary of using their email communication to obtain customer data in an unfair manner for fear of heavy fines, as the regulation prohibits the unauthorized collection and use of personal data.
To learn more about common marketing methods and approaches to new and existing customer management, Capterra surveyed 202 employees and entrepreneurs from Germany in December 2018 [1] . From their information, we were able to derive some customer relationship management trends.
Customer loyalty is our highest priority
Online advertising is ahead in acquiring new customers
Quality over quantity
The customer relationship becomes more personal
Nothing works without powerful CRM solutions
Let’s look at this in detail.
Customer loyalty is our highest priority
"Studies consistently show that acquiring new customers is five times more expensive than retaining existing customers. So if companies focus on their relationships with existing customers, they can improve their ROI in 2019."
Suzie Blaszkiewicz, Senior Content Analyst at Gartner Digital Markets (which owns Capterra)
An overwhelming majority of 84% of respondents said they give priority to customer retention over new customer acquisition, which, conversely, only 15% see as the more important issue.
Of course, every customer has been a new customer at some point, so every company (and especially all growth) stands or falls with acquisition. But once you have built up a customer base, it is a real asset that needs to be maintained and used. If you want to retain existing customers, you cannot do it with just one contact; you need several touchpoints, which are best distributed across different channels. Because the customer experience goes far beyond the product or service purchased. How do users feel about the website, the store, the customer service, the communication, etc.? Successful, cross-channel communication increases customer loyalty and encourages customers to come back after an initial purchase.
Suzie Blaszkiewicz, senior content analyst at Gartner Digital Markets (which india telegram data owns Capterra), knows the numbers: "Acquiring new customers is five times more expensive than retaining existing ones." And according to this 2017 McKinsey study (available in English) , existing customers spend twice as much money as new customers. Accordingly, an increasing share of existing customers automatically goes hand in hand with increasing sales.
"While companies compete with each other for the favor of customers, the latter want a relationship on equal terms in which they are understood and taken seriously. In 2019, companies will invest in this relationship and choose more direct communication channels."
Suzie Blaszkiewicz, Senior Content Analyst at Gartner Digital Markets (which owns Capterra)
We also asked how companies are currently trying to attract new customers. 32% of respondents believe that online advertisements are the method of choice, followed by emails and on-site or in-store contacts, each with 20%. If you want to keep up, you should invest in the ranking of your own website and online marketing, for example through sponsored content. The more closely your advertisements and content match your offer, and the better they are tailored to potential customers (don't forget about local restrictions!), the more likely you are to be able to reach these potential customers. When it comes to existing customers, however, 59% of respondents prefer to be addressed directly.