Is CRM the Missing Jigsaw Piece for Struggling Companies in the Retail Industry?
CRM, or Customer Relationship Management, has been an unsung hero in the retail industry for a long time. However, recent years have seen a positive change in the attitude of retailers in this aspect, because customers have gradually established their position as ‘the king’ in the market. Due to this change, leading players in the retail industry […]
CRM, or Customer Relationship Management, has been an unsung hero in the retail industry for a long time. However, recent years have seen a positive change in the attitude of retailers in this aspect, because customers have gradually established their position as ‘the king’ in the market. Due to this change, leading players in the retail industry have realized that the deciding factors for their survival in the market are customer satisfaction and retention. This is where the role of CRM comes into the picture. With the help of this technique, retailers can keep track of their customers’ purchasing behavior, requirements, feedback and gaps in service, etc. and alter their services in such a way that the customers’ delight and goodwill can be increased. Let us discuss a few other key benefits that you can reap by adopting CRM strategies for your business.
Collect Valuable Customer Data
Considering the large number of customers that companies in the retail industry deal with, it is not possible for them to keeps tabs on every customer manually. Therefore, having an effective customer relations software will help retailers to record individual customer profiles such as purchase history, contact details, the frequency of purchase, feedback, etc. This will help retailers to understand their customers better and provide a better quality of services.
Better Targeting of Promotional Activities
When you know the likes and preferences of your customers, it becomes easier to tailor-make and target marketing and promotional activities for specific customer groups. For, e.g., If a customer’s purchase pattern shows more of formal wear, the players in the retail industry can use this data to promote the new collection of formal wear to this customer or group of customers showcasing similar buying behavior.
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Increased Customer Loyalty
When customers feel that your company is giving them more individual attention, better rewards, and offers they are more likely to stay faithful to your brand. With mounting competition in the retail industry, customer retention has become the need of the hour. It is essential for players in the retail industry to successfully satisfy customers to ensure that they do not lose out customers to competitors. This could also mean that your existing happy customers would recommend your company to their peers, which would help you expand your sales as well as your customer base.
Useful Tool to Improve Your Offerings
Players in the retail industry can gather valuable customer feedback and opinions with the help of CRM. This will help them to get a better picture of what their customers expect from them and identify and rectify the gaps in their products/services accordingly. This will not only help meet the customer demands but also give the feeling to customers that their opinions matter to your brand, increasing their loyalty and chances of retention in the longer run.