Wed 16 Aug, 2017

5 of the most Common CRM Marketing Mistakes

Unfortunately there are a lot of poor CRM practices and many stem from basic mistakes being made in the planning and execution of contact strategies, data management and marketing automation. This article will review the top five most common mistakes.

1.Letting the technology tail wag the marketing dog 

It’s very common for CRM software to have been selected and even implemented before an understanding of how it is going to be used has been developed. This can be dangerous and potentially expensive.

Of course every demo of CRM software is going to be great and feature-rich. But if you haven’t designed the marketing activities that it is actually going to support then many of the features may never be relevant to your business and you could end up having to customise the CRM software to get it to a usable state, which is time consuming and avoidable.

2. Not thinking about data quality 

Data is the fuel of all good CRMs so if you compromise on data quality then you will be compromising on the ROI of your CRM programme and on the quality of the customer experience that you deliver.

Customer Relationship Management is a process for guiding and organising customers through their lifecycle with a brand. It seeks to build a positive customer experience, assist in retention and drive sales by storing and using relevant data. This data is then used to ensure communications are personally relevant to each customer every time they interact the brand. And at these interactions it is imperative to deliver the right information to the right customer or prospect through the right channel at the right time.

3. Not automating their processes

A modern CRM should be highly responsive and customer driven. At each of the interactions that your data identifies (#2 above) you should have business rules and automated processes or communications that kick in. These could be notifications to your sales team to follow up a ‘hot’ lead based on their behaviour or an email offer to a customer who has placed an order.

If you don’t automate then you’re probably not being responsive and your CRM activity is probably too expensive or inefficient. Even worse, responsiveness is the battleground for data-driven marketers and customers are being conditioned to expect timely, relevant and interesting communications; with barriers to switching very low it is important that you get this right.

4. Measuring the wrong things

All CRMs should be highly measurable but lots of brands fail to set the right KPIs and tracking. The result is that many marketers end up concentrating on vanity metrics (eg. size of the customer database) rather than what really matters (eg. how many of the database are active and engaged).

If you are clear on what your CRM programme is trying to achieve and the role that you play for different customer segments, then your critical success factors and setting metrics that matter should be relatively simple.

5. Focussing on the business objectives not the customer experience 

This isn’t meant to contradict mistake #4 above.

The customer is king and too many brands churn out timetabled mass communications rather than being relevant, useful and available when the customer actually needs them.

It’s important to get close to the pain points of your customers and figure out how you can reduce pain at these moments of truth, then use segmentation to plan and personalise the interactions that you have with each customer.

Learn more about how to set a world class CRM strategy at Hatch:CRM, a 2-day advanced workshop in central London. The workshop is led by Simon Spyer, CEO of Conduit Data Services, who has over 10 years’ experience building and consulting on data management and CRM solutions. For more information on this or any of our 10 marketing workshops take a look here or call 0207 117 2441.