Customer Relationship Management

Sajjad Hussain
Oct 29 · 6 min read
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Nowadays, CRM (Customer Relationship Management) has become an important tool to help enterprises’ information operation.

CRM is only a concept in management at its initial stage, and it is a method of managing the relationship between an enterprise and its customers. At the moment, CRM has materialized as a tool (software system) for companies to manage customer relationships.

By using the CRM system, companies can better segment the user population, so that they can adopt corresponding operating strategies for different types of customers while improving the customer experience, they can also optimize the relationship with customers and continue to explore The value of customers further increases corporate revenue and profits.

At present, the areas where CRM is widely used are mainly e-commerce. Alibaba’s branded data bank is the more famous CRM product. A qualified CRM product should include multiple modules such as user classification, marketing reach, sales and service processes, so before launching a CRM product, it is necessary to have an in-depth understanding of consumer groups.

1. User classification mode

1. Brand Pyramid

Brand pyramid is a common model used by many companies, including brand recognition, pre-purchase analysis, first purchase, repeat purchase, loyal users, and recommended purchasing agents. This is a process of continuous improvement as users’ awareness continues to deepen. The role of the brand pyramid should not be underestimated, here is a brief description.

First, through the brand pyramid, brand owners can understand the current stage. If there are few users who recognize or understand the brand, they need to promote it through advertising and publicity to further deepen the target group’s brand awareness. On the contrary, you need to observe the marketing effect. If the user’s conversion rate is not ideal, it means that the group’s perception of the brand is still in its infancy, and marketing needs to be used in the future to pull users.

Second, brand owners need to observe the changes of users at all levels of the brand pyramid throughout the process to monitor the current health of the brand. If the conversion rate of users from pre-purchase analysis to first purchase in a certain quarter drops significantly, brand owners can consider targeted marketing interventions for people at this level of pre-purchase analysis to improve the brand status.

Third, e-commerce has great advantages over traditional channels. Because e-commerce has relatively rich user data, brand owners can further analyze user classification through the brand pyramid, and then take targeted operational measures. For example, targeting people who have pre-purchase analysis, pull new products through targeted discounts. At the same time, repurchase discounts are provided to users who have purchased for the first time, repurchase reminders are regularly issued to users who repeat purchases, VIP rights are provided for loyal users, and recommended incentive policies are provided for users who recommend purchasing agents.

2. SICAS model

S (Sense) brand and users perceive each other, I (Interest & Interactive) generates interest and forms interaction, C (Connect and Communication) establishes contact and interactive communication, A (Action) generates purchase behavior, and S (Share) experiences and shares.

It can be seen that the SICAS model is similar to the brand pyramid, and its ultimate purpose is the same, but the SICAS model emphasizes the connection between the brand and the user, that is, how to establish a dynamic perception network between the brand and the user; The touch points mentioned are used to enhance users’ cognitive impressions on the one hand, and on the other hand to respond to users’ needs in a timely manner. This is a feature given by the mobile Internet era.

The product divides users into four categories cognition, interest, purchase, and loyalty. Brand owners can view the number of users at each level in a certain period of time. And the proportion of conversion or loss to other levels.

3. User Behavior Path

The brand pyramid is usually based on the user’s multiple behaviors and pays more attention to the long-term relationship with the user. The SICAS model focuses on behavioral touch points, which is relatively broad. In the case of e-commerce, we can also understand users by analyzing their basic path from browsing to placing an order.

In addition, users can also be subdivided according to behavior paths. This method is obviously more direct and can be familiar with users’ behavior patterns. It is convenient for enterprises to provide users with better services at various nodes, and it is also conducive to user intervention at appropriate nodes. .

2. CRM product framework

After understanding the needs of users, there is an idea to build the foundation of CRM as a whole. Generally, brand owners have the following pain points. One is not clear about the composition of users, two is without user details, three is unable to influence users, and four do not know how effective the return is.

Therefore, a complete CRM product needs to form a closed loop on the system, which roughly includes the following modules:

User classification module : Use brand pyramid and SICAS to classify users, and segment the target group according to actual business needs. For example, divide the group considering buying into transfer-in (no intention to buy this brand but bought this brand), realization (intention to buy this brand and buy this brand), transfer-out (intention to buy this brand) But bought other brands).

After subdividing the population, data monitoring indicators can be established to evaluate the status of user assets, and the display can be updated in the form of data billboards in CRM products.

User analysis module : When a user’s asset status changes, it is necessary to analyze the characteristics of a certain type of user in detail. At this time, a user analysis module is required. It can start from three points: user portrait, category behavior and product preference. Although user analysis is a lagging method, through familiarity with existing users, you can grasp the characteristics of a certain type of user, and then you can intervene in advance for similar users next time.

Landing application module: The effectiveness of this module depends on the maturity of the existing implementation products. After all, it is difficult to build a self-contained implementation system. User analysis and landing applications need to be directly related, so that brand owners can directly screen target groups based on user tags after analyzing users. For example, in a data bank, it is possible to support the operations of “cross”, “union”, and “difference” based on user behavior or user attributes, so as to screen users for intervention.

Effectiveness evaluation module: After the end of the marketing activity, it is necessary to review the analysis, so data return is very important. We can perform full link tracking for certain types of users to check the effect of the activity, and to find out the problems in the activity, so as to avoid and optimize.

The above only for basic functional modules of CRM products, but in fact, each module needs to be intensively cultivated, and it is necessary to open a connection path between the implemented products, and also to unify the theoretical scheme to ensure the consistency of product use as much as possible.

CRM system is essentially a data product, and its core lies in methodology and product logic.

User classification methods belong to methodology, and users are classified according to corresponding standards. At the same time, it is necessary to think about why such methods are used for user analysis and whether the analysis results can be implemented. The methodology studies the user groups of CRM product users.

The product framework belongs to the product logic, that is, the methodologies of each part are connected together to tell a complete story. This layer studies the users of CRM products themselves, connecting various unit modules through their workflow or core pain points.

So in summary, can we achieve these requirements on traditional CRM? The answer is yes. But its cost may not be acceptable to most companies, and user analysis has different requirements in different industries. Only self-configurable CRM can solve the actual needs of companies.

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