CRM is dead... long live PRM!

Customer Relationship Management (CRM) is a term which has long been used in sales and marketing circles to describe a methodology for acquiring, retaining and deepening customer relationships through targeted, personalised communications.

Or to put it more eloquently, Wikipedia defines CRM as:

“... a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes.”

Wikipedia also highlights that the overall goal of CRM activities is fourfold:
Firstly; to locate, attract and secure new clients
Secondly; to cultivate and retain existing clients
Thirdly; to bring former clients back to the business, and...
Fourthly; to reduce marketing and client servicing costs.

Where this definition differs from our own is that it focuses on the use of technology to achieve the end goals. Whilst we don’t necessarily disagree with this, at EWA we prefer to focus on the overall ‘CRM ethos’ i.e. how can we help our clients to get closer to their customers through the use of CRM led techniques and appropriate technology rather than thinking of CRM technology as being the panacea to all customer communication challenges. Customer Relationship Management technology is only ever as good as the people who use it and the data that goes in.

A conversation along these lines with a client recently sparked a new idea (and I must say it was hers not mine, so well done Talia at Wilshire Farm Foods!), shouldn’t we be thinking about Personal Relationship Management (PRM) and not just an all encompassing approach to customer management?

The Holy Grail for marketers has always been to properly, completely understand what makes customers tick and then use this information to talk to them about (and ultimately sell) products which are of interest. The practice of CRM goes some way to achieving this, but ‘traditional’ methods can still lump people together into segments which share broadly similar characteristics. Marketers will then often fall foul of sending communications via the channel that best suits them (or is the cheapest) and not necessarily the one which their customers prefer.

So what we’d like to advocate is a shift in mindset to a PRM approach – essentially each and every customer communication should adhere to the 3 Relevances:

• Relevance of channel
• Relevance of message
• Relevance of timing

If a communication can be sent at the right time, talking about things of interest via the right means it will ultimately improve customer relationships and remove the annoyance factor of untargeted, irrelevant marketing, something which is often underestimated in terms of negative brand impact.

And the technology to achieve this already in place, the integration of CRM systems and email marketing together with customer insight have brought customer communications on in leaps and bounds - Amazon is a fantastic example of this and how to use customer data to achieve highly personalised marketing. We’ve all spent more than we intended on Amazon as a result of their very sophisticated cross sell and up sell messaging (or is that just me?!)

So there you have it, it’s all about Personal Relationship Management and truly treating customers as individuals. We’d be interested to hear your thoughts on this: is it just a utopian dream or can technology coupled with the right approach deliver the returns we’re all after?

Why Data Cleansing is So Important

Keeping databases cleansed so that they contain the most accurate and up to date records has always been important. Whilst it may be a labour intensive process the rewards make it wholly worthwhile, adding significant value to your marketing efforts and the understanding of your customers, or potential customers.

Data cleansing is about more than good housekeeping, removing duplicate or obsolete data and correcting inaccurate information. In today’s climate of data protection and financial pressure on marketing budgets the necessity for cleansed and accurate information is greater than ever. Here are just some of the important reasons to ensure your data is sufficiently cleansed.

Benefits of Data Cleansing:
• There are myriad financial benefits to cleansing your databases, not only will such activities stop you wasting money on storing old or obsolete data, but the improved accuracy can result in greater return on investment for your marketing activities.
• This greater accuracy in terms assists in your target profiling, meaning that your marketing campaigns will be more focussed, relevant and subsequently more likely to be successful. Understandably, using obsolete data for your targeting activities will only lead to misdirected campaigns.
• Storing old information can actually harm your brand image and customer perception. For instance, if you are consistently sending marketing literature to old addresses, customers that may have died or opted out of receiving promotional material, your efforts are actually helping to create a wider negative image, rather than return on investment.
• In modern business the Data Protection Act should always be a consideration, particularly in regards to the storage of personal information, where failure to cleanse can actually result in non-compliance. Subsequently, cleansing activities are necessary to eliminate any chances of breaching the Data Protection Act and hence any financial penalties.
• Finally, improving the quality of you data results in improved customer insight and adds considerable value to your marketing efforts by improving ROI.

These are just some of the reasons to undertake data cleansing, however, as a business it should be remembered that the process is ongoing, databases require practically constant management and cleansing to ensure they contain, up to date, accurate and valuable information.

Project Kaisei - Clearing the North Pacific

This is a little bit of a change to norm for the EWA blog but we have been asked by our fellow WPP agency Cohn & Wolfe to help by posting some information on Project Kaisei, an important initiative to stop the growing problem of plastic debris in the North Pacific.

Project Kaisei is a non-profit ocean clean-up initiative with a mission to stop the growing Plastic Vortex. The Plastic Vortex, otherwise known as the Great Pacific Garbage Patch, is a huge accumulation of plastic debris in the North Pacific Gyre, containing large pieces of plastic and other rubbish.

This is a severe problem; previously referred to as the 8th continent and floating roughly one thousand miles off California’s coast, this plastic patch was estimated to be twice the size of Texas and growing.

Each year the Project Kaisei ship sets sail to research the Plastic Vortex and increase understanding of marine debris, its impact on our ocean environment and how we can introduce solutions for both prevention and cleanup. $2.7 million will be required to help cover the costs of the next voyage.

To help raise funds for the voyage, Cohn & Wolfe and Project Kaisei have created a 30 day campaign centred on a streaming video of Kai (pronounced Kī), a small goldfish involved in an epic battle against plastic pollution.

Via a 24-hour webcam consumers can follow Kai’s plight, living in an aquarium filled with plastic material, representing the Plastic Vortex. To “Save Kai” and remove plastic from his castle in the sea, participants can make donations via Facebook www.facebook.com/projectkaisei in as little as £5 increments from now through just after World Ocean’s Day on June 10.

As donations increase, the plastic debris in the aquarium decreases, creating a safe and plastic-free environment for Kai to enjoy. All proceeds from the campaign will go toward helping Project Kaisei fund scientific research and clean up expeditions.

Customers Still Want to Talk Even with the Growth of Self-Service Culture

It wouldn’t be unreasonable to believe that in this “connected” world, with the internet available nearly everywhere that the phone call and particularly the phone call to contact centres would no longer be a necessity.

According to new research from BT and Avaya however, this is simply not the case. Whilst the use of smartphones has been growing at pace throughout the UK, opening up the opportunity to use self-service websites, this has not had a significant negative effect upon the use of contact centres for customer enquiries and support.

The report states that the vast majority (90%) of smartphone users are expecting to use contact centres in the future, despite having the internet available to them practically constantly. The research also points out that contact centre communications were particularly utilised when enquiries were of a technical or complicated nature.

Head of BT Global Services Andrew Small said that “calling the contact centre is the favoured way to resolve the most complicated queries.” Mr Small also highlighted that users were still using the internet in the enquiry process, but argued that typically consumers now research before calling; meaning that once the call is made they already have a basic knowledge of the issue and expect the advice at the other end of the phone to be capable over and above what they have learnt themselves.

This demonstrates the importance in the modern contact centre climate to have staff members that are effectively trained and knowledgeable, so that they can resolve issues confidently and correctly. It also highlights the current importance of understanding multiple, integrated communication channels such a telephone, email and direct messaging when dealing with customer enquiries.

These two important aspects of modern day call centre operation, effective training and multiple communication channels, demand that outsourced customer communication services are now a seamless extension of a brand and company, showing not only technical knowledge but a professional approach to customer handling and insight.

Customer Response Handling – An Introduction

Response handling can be considered one of the most important elements within customer service and more widely, business. Put simply, response handling is the mechanisms put in place by a business, or an outsourcer, to deal with customer enquiries, orders and complaints. By defining and putting these mechanisms in place early in a marketing campaign or a longer term customer communication strategy, it is possible for businesses to apply a logical approach to each and every customer interaction.

The way in which response handling is performed defines the customer experience and as such is one of the key building blocks of a positive brand image and successful marketing campaigns.

Response handling activities can utilise a range different communication channels such as telephone email, SMS, social media and direct mail. The selection of these channels is largely dependent upon the preferences of the target audience to ensure the appropriate response channels are used.

Response handling actions can form part of a larger customer strategy or even be directly linked to a marketing campaign. Essentially, a short term project will utilise personnel that are trained to answer enquiries on a specific product or promotion for the duration of a marketing campaign. In contrast, long term response handling activities will use staff that are well versed in the business, and will typically form part of wider customer communication initiative.

Like so many other aspects of customer interaction one of the key components of effective response handling is managing data correctly. It is by collecting and analysing this data that it is possible to extract the maximum value from each and every customer interaction.

With the right response handling activities being undertaken it is possible to hone and refine customer engagement, whilst simultaneously improving the wider service offering. The resultant benefits are myriad and include improved customer services, the creation of a positive brand image and subsequently, increased customer loyalty. By outsourcing this task it is possible to not only make financial savings but also to secure adept, professional services that significantly improve business/customer relationships

Why Data Management is Vital to Customer Insight

With the benefits of effective customer insight studied at length and the importance of understanding the integral role played by data analysis activities presented; it is also vital to understand that how you manage your data is an important business decision.

Data management is one of the more utilitarian aspects of customer insight, concerned with actual design, development and hosting of databases. Ultimately, well managed data can be analysed as efficiently as possible and as such, data management tools form the building blocks of improved customer relationships, better business strategy and overall, enhanced performance.

Essentially, after a range of different customer insight activities have returned reams of information, a place in which to store, manage and analyse the data is needed, this is where data management tools offer a very real and extremely useful resource.

Typically data management tools will utilise relevant technologies in order to deliver the greatest amount of added benefit to the client. Functionality which grants efficient and effective access whilst allowing sets of data to be fully understood should always form the backbone of any data management service.

Data management tools may also incorporate the physical hosting and maintenance of databases. Frequently referred to as data warehousing, anyone looking to utilise such resources should note the inclusion of secure access features, efficient search and query functions and also the practical application of data management principles.

If a company is to make the most of its customer insight activities it can be worthwhile to obtain an integrated solution from a single service provider; one that offers a strategy for obtaining insight, demonstrates how data will be effectively stored and finally can provide systems to break down data so that it can be analysed.

Ultimately the foundations of effective customer insight can be found within the right data management tool set; if the choice of services is correct, a company is given the greatest opportunity to benefit from customer insight activities.

Customer Insight – More Than Purely Metrics

Whilst customer insight processes can rely heavily on sets of data in order to present levels of satisfaction, retention and behaviour, it is a fundamental element of customer insight to look beyond the numbers and take something tangible away from the figures. With the right customer insight service at your disposal it is possible to make on-the-spot and strategic decisions that can significantly change operating procedures and customer interactions. In essence, customer insight has the potential to revolutionise customer services for the better.

At the operational level, having effective customer insight by intelligently analysing and using metrics can lead to much improved customer handling procedures. It is through breaking down data and seeing where deficiencies lay that it is possible to recycle this understanding into training procedures. This training in turn helps to improve specific customer interaction activities such as up-selling and complaint handling and ensures that all procedures are relevant and appropriate to a company’s customers.

As well as increased capacity to resolve issues reactively; the improved training that results from customer insight activities allows a company to instigate proactive measures, which help to solve problems and identify opportunities in the long term. The result of these procedural changes is an increase in productive customer relationships and a decrease in those that are stagnant or degrading.

Whilst it may have been explored previously the assistance that customer insight can provide in the formulation of strategies for the business is invaluable. This applies to not only upcoming marketing campaigns, to ensure they are effectively targeted but can equally apply to new products and services, to ensure that they are in the interests of a company’s customer base.

Fundamentally customer insight data and initiatives should change the entire outlook of a company, to one that is far more customer centric and focussed towards providing the best service possible. It is by employing customer insight strategies that it is possible to instigate this change, improving not only customer loyalty and retention, but also allowing a company to understand the delicate balance between customer satisfaction and revenue.