CRM Talks #38 with Julia Skrobek

The founder and Consultant at CleverAct discusses CRM as a philosophical approach, the crucial role of data, and the future, focusing on a value-driven approach.

Welcome to our interview with Dr. Julia Skrobek, Founder and Consultant at CleverAct, a CRM Consulting Freelance Business Provider.

In this episode, Dr. Skrobek will discuss CRM as a philosophical approach, the crucial role of data, and the future with a focus on a value-driven approach.

Could you provide your definition of CRM?

I am inspired by Tony Hsieh’s Zappos philosophy of consistently delivering an exceptional customer experience. Embracing the principle of “WOWing” the customer is a valuable credo to bear in mind when establishing a system that prioritizes effective customer relationship management with the overarching goal of driving business success.

It is essential to recognize that Customer Relationship Management (CRM) is not merely a channel, project, or program; rather, it embodies a philosophical approach. Consequently, my objective is to conceptualize a company as a CRM-oriented organization, emphasizing a “customer-first” mindset where the customer remains the central focus of our business endeavors.

Why is it necessary for companies to implement CRM?

Implementing Customer Relationship Management (CRM) is not akin to installing a CRM system once and subsequent input of data, leading to instantaneous and conclusive results.

Quite the contrary, successful CRM implementation necessitates a thoughtful and value-driven approach. This involves defining the desired nature of customer relations, such as the ideal customer journey from the customer’s perspective, and aligning it with the organizational purpose and objectives.

Consequently, a comprehensive understanding of what is required to effectively serve customers and the strategic steps to achieve these objectives is imperative. In digital business models, this entails formulating a robust data strategy and a customer data strategy that are derived to address specific use cases, setting up the MarTech Infrastructure appropriately, and getting the team members together who aim for the customer focus as passionate as Tony Hsieh (if this is possible at all).

Which CRM key metrics do you use?

From a strategic perspective, I prefer to construct a KPI bridge originating from a well-defined North Star KPI, which could be “Existing Customer Revenue” or “CLV.” This bridge extends into 3–5 driver KPIs, such as retention rates, buying frequency, AOV, and customer retention costs, incorporating relevant quality-driving metrics like NPS.

Why? Observing a decline in any of these metrics serves as a wake-up call, compelling attention to optimizing the customer journey experience.

Retention metrics aid in discerning binding or loyalty effects, while properly implemented NPS reveals detailed sources of satisfaction or dissatisfaction drivers. CLV, on the other hand, facilitates the direct evaluation of business performance, determining how much time is required to offset marketing expenditures (CAC + CRC). Adding operational performance metrics, for example of campaigns and channels, and bringing them into the relation of customer segments lets you get there to be able to steer customer development.

What are common mistakes made when working with CRM?

In CRM, data plays a crucial role.

If leads are circulating without a clear understanding of when and why they convert into paying customers, the organization will incur losses in the mid- and long-term.

Zalando had a distinct advantage in its early days: it utilized all available and relevant data to develop a thorough understanding of customers. This understanding was integrated into bidirectional communication and various customer-related processes. Initiating this approach early allows the development and optimization of touchpoints with the customer, extending to all processes, such as logistics, customer service, and payment. Investing in the early measurement and comprehension of relevant data is essential.

How do you envision the future of CRM?

The focus on CRM will become even more pronounced, and well-known phrases like “activating existing customers is 5 to 10 times cheaper than acquiring new customers” will be validated in periods of rising Customer Acquisition Costs (CAC), diminished marketing budgets, and still increasingly cost-effective direct channels.

Just think about zero and first-party data — how can you get a better foot in the door than with your initiatives and measures?

However, this isn’t accomplished with a mere handshake. For many companies, it is a transition from performance-driven marketing to value-driven marketing, i.e., delivering value to the customer and getting the engagement of the customer to also get involved in a bidirectional exchange of information.

An investment in CRM strategy and systems and a relevant, value-driven, and qualitatively worthy customer approach is imperative—preferably sooner rather than later. Customers will no longer solely appreciate the convenience provided; more than ever, they will reward excellent offers and services and an authentic, exclusive way of interacting.

Channels like Whats App Marketing or direct chats will play a bigger role than before.

About CleverAct

CleverAct is a CRM Consulting Freelancer Business Provider. With strong experience in digital CRM and a great network of data experts, the company provides sustainable impact on teams, campaigns, and processes. Services range from CRM Audits, Tool selection, and implementation to interim team roles and recruiting. For leaders, CRM Strategy Development and day-to-day CRM sparring are the most booked services.

Author: Anna Ambrozevich