Using Email and CRM to Retain Customers
A recent study suggests that retention is one of the top concerns for companies. A good customer relationship management system can be used in efforts to retain customers. Email can be used in combination with CRM collected information to keep in touch with customers and remind them what your company has to offer.
Amazon is a prime example of using customer information for retention. They do this by sending out regular emails notifying customers of new products they might be interested in based on their past purchases. For example, last Christmas I purchased gifts on Amazon including a book based on the video game Mass Effect and since then I have received an email letting me know about new products including the next book in the series. Amazon also uses a blanket email approach for information about sales and promotions. Customers can easily opt out of email lists by changing their preferences in their account information. By remaining in regular contact with customers and reminding them about the deals they offer, Amazon is able to retain customers by keeping their website at the top of mind. It is made more effective by customizing the information sent based on the customer’s preferences using Amazon’s sophisticated customer relationship management system.
Customized emails based on a customer’s preferences work better for retention than blanket emails sent to all customers. However, how do you effectively customize information for customers that you have not collected information on? Many websites that offer a variety of topics ask new users to specify which ones they are interested in. Free Patterns.com, a website offered by DRG Publishing, does just this using an effective opt-in strategy. During the registration process necessary to access the collection of free patterns new users are asked what types of crafts they are interested in. The registration process also collects contact information and allows customers to subscribe to a variety of newsletters if they wish. This information could then be used to create a customer profile which can be further refined by tracking which patterns the user downloads. Both the free patterns and newsletters help remind customers about the magazines between publications and encourage purchases by highlighting new magazine issues.
Customizing email communications does not require a complex CRM system. By using customer preferences emails can be useful and keep the company at the top of mind, leading to customer retention.
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