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What CRM-marketing is
 What CRM-marketing is
 What CRM-marketing isn't
 What CRM-marketing includes
 What data about clients can be used and how it is collected
 What companies need CRM-marketing
 How loyalty programs are connected with CRM-marketing

There are lots of speculations about CRM-marketing on the market, but the meaning differs from person to person.

We`ve decided to learn the nuances and to write about everything in a clear and simple way as we always do. The articles we`ve found in the first ten search results do not really satisfy us.
What CRM-marketing is
CRM-marketing is marketing based on data about clients. Actually, practically any type of marketing is based on data about clients, but CRM-marketing does it on a different level.

For instance, you have a contact base in MailChimp. You want to send a special offer only to the most active subscribers. You make a segment of those who opened five latest emails and send your offer to them. Is the marketing based on data about clients? Yes. Is it CRM-marketing? No.

In CRM-marketing, if you want to send a special offer only to the most interested subscribers, you firstly analyze what product and discount you can offer for it to bring you profit, choose the segment of the ones "who opened five latest mailings + in the past six months bought the products connected with the product from the special offer" and set up email sending. If the email is not opened within two days - the sms is sent.

Do you understand the difference? In the second case, unlike in the first one:

the offer is formulated on the basis of analytics data;
the segment is set up more precisely;
the offer is personalized thanks to the data from CRM;
the communication channels are used.
Stages of CRM-marketing
The above given example may make you think "Wow! If I send email and sms mailings, I have CRM-marketing!" However, it is not exactly so. CRM-marketing does not mean that you will necessarily use several channels of communication with a client. It means that you skillfully collected data about clients, skillfully analysed it and on the basis of this analysis use right channels of communication.

That is why CRM-marketing consists of the following stages:

business analytics;
setting objectives and goals, establishing KPI;
collecting of a contact base with the necessary set of data;
choosing and implementation of communication channels.

Separate works within CRM-marketing allow to support and develop loyalty programs: business analytics makes it possible to calculate who and what discount shall be given to and how it will influence the revenue; and communication channels help to keep in touch with the participants of a loyalty program and stimulate others to join in.
Business analytics
Business analytics is necessary to understand how to keep in touch with the clients, stimulate their purchases, what results in CRM-marketing aim at, what channels to use and how to do it.

Sometimes launching CRM-marketing in a company begins with the implementation of channels and there is a risk of spending money on the communications which won`t pay off. Prior to setting up communications, it is necessary to investigate the clients and their peculiarities:

who buys the product
whether the clients return after the first purchase or not;
what prevents them from buying again;
how long does it take them to make a decision about a purchase;
what are the possibilities of audience growth and life cycle of the clients;
what is already launched in marketing and what effect it gives;
whether there is a collected contact base, what is its condition and how it is collected;
product peculiarities and bargain cycle.

Business-analytics as a separate service will help if:

you want to understand better how exactly you make money from your clients;
you want to understand how to make clients buy more;
you want to understand what to do to make your clients stay with your longer;
you plan to implement a loyalty program and want it to help you to earn more.

Business- analytics shows what to do in general. For instance, business-analytics of one of our clients showed that the 5% growth of conversion from the first purchase to the second one will increase the turnover by 3% which makes about six million roubles. Thus it made it clear that communications should be focused on stimulating the second purchase.
Setting objectives and goals, establishing KPIs
Objectives in CRM-marketing
Business-analytics helps to specify the objectives and makes it clear how growth in one of the rates will influence the profit or the turnover. That is why the objectives after the analytics made look different:
The most important thing is that these numbers are not taken out of nowhere, they are based on real business-rates and forecasts. Such formulations help to distribute work efforts correctly and to establish proper KPIs.
Goals are the ways to achieve objectives at the project:

to launch contact base collecting online and offline;
to integrate CRN with the platform of email and sms mailing;
to set up a welcome chain of emails and messages;
to set up trigger letters: abandoned cart, reactivation, abandoned view/session, discount from a certain amount of buying.
KPIs on CRM-marketing projects
Key performance indicator, chosen for the project, should help to make a comprehensive assessment of the results. For example, one can`t set an objective to increase profitability of mailings without tracking the state of the contact base. That is why, when launching CRM-marketing, growth of contact base, subscribers retention rate, subscribers engagement rate; emails profitability, revenue, the number of transactions from mailings may serve as KPIs.

The scheme represents possible KPIs divided into groups:
Collecting a contact base
As soon as business analytics is done and objectives, goals and KPIs defined, the project can be launched. A very important part is collecting a qualitative subscribers base. A qualitative base means that:

the subscribers knew what they subscribed for and have volunteered to receive emails;
contact details in the base are well-functioning and valid.

Methods of collecting a base depend on the peculiarities of the audience. It is possible to use online- (subscribe forms on a web-site, including pop-ups) and offline-instruments (questionnaires in shops).
Choosing and setting up channels of communication
The stage of business-analytic gives a picture: what information about subscribers you possess, what results previous campaigns led to, which channels may be effective and which ones should probably be held off.

All these aspects help to choose channels of communication with clients:

email-mailings: promo-, trigger-, and transactional ones;
sms and other messengers mailings;
social networks messages.

It is important in CRM-marketing for the communication to be based on the data. That is why mailing platforms integrate with CRM-system, analytics systems and other services which have data about clients. If the status of a client is changed in CRM-system he gets a message in Vkontakte. Integrating of all the systems - that is what helps CRM-marketing to make communications personalized and effective. Besides CRM-system, data can be collected from the analytics service which collects the information about the integration of a client with the website.
What is the difference between CRM-marketing and email-marketing
Notions of CRM-marketing and email-marketing have different basis. Email-marketing is about the basic channel of communication - delivery of offers to the client via emails.

CRM-marketing is focused on the data about clients. The channel, as well as communications themselves, is chosen on the basis of the information about clients.
What data about clients is useful in CRM-marketing
What companies may need CRM-marketing
CRM-marketing is expensive. That is why you should understand beforehand if it is worth being implemented. CRM-marketing may be useful if:

your company has such a budget for marketing that a long implementation won't make you broken;
your contact bases consists of tens of thousands contacts;
you want to build a fine system of communication with your clients to sell them more.