MARKETING

What is CRM? A Guide for Marketers

Published

2 years ago

January 26, 2022

Customer relationship management (CRM) is the technology brands use to nurture relationships with their customers. These solutions are designed to help sales and service agents communicate with customers more effectively. And because 91% of businesses with more than 11 employees use a CRM, marketers would be wise to learn about all they have to offer.

In this piece, we’ll dive deep into CRM systems and their impact on marketing teams. We’ll cover:

Estimated reading time: 11 minutes

The benefits of CRM

At their core, CRM systems are designed to facilitate customer and sales relationships. From the most basic solutions to the most complex, CRM software stores, organizes and shares customer information to facilitate connections. They collect basic information such as customer websites, emails, phone numbers, purchase dates, social media data and much more. Some even record data in the form of lead scoring based on internal analysis systems.

CRM platforms track user activity across many online channels and seek to guide them through your sales funnel. In essence, they work to paint a picture of the customer to better understand them and, ultimately, fulfill their needs. This approach saves brand resources by focusing on potentially profitable actions, rather than adopting a hit-or-miss approach and hoping customers “bite.”

Organizations of all sizes can take advantage of CRM’s wide range of benefits, including:

Improved information organization.
Automated data entry.
Customer segmentation.
Process scaling.
Prospect follow-up reminders.
Improved reporting.

“Corporations invest in sophisticated CRM, or customer relationship management, programs to effectively oversee their relationship with their customers at every point during the buying process,” says Marc Ostrofsky, entrepreneur and bestselling author of “Get Rich Click.”

CRM platforms can save brands time and resources, yet their ability to enhance customer relationships is their greatest asset. Trust is a bigger success factor than ever in our transformed digital landscape, and brands that fail to keep their customers happy from the get-go will most likely lose out. A CRM system can help organizations combat this challenge by speeding up communication, offering insights to help anticipate needs, and orchestrating marketing activities to deliver relevant information to enhance customer journeys.

Types of CRM systems available

CRM systems are often confused with customer data platforms (CDPs) because they both store customer data, but the two are designed to meet different challenges. CDPs bring together customer data from various sources and unify it, creating shareable profiles in the process, while CRM software enhances the communication and brand relationship with customers, leveraging their data to craft more engaging communications.

At their core, CRM tools offer solutions to help support sales and service agents with customer communications. Unlike CDPs, CRM systems use their technologies to ensure each step of the customer’s experience is as frictionless as possible.

There are a variety of CRM formats available — cloud-based, on-premise, industry-specific, etc. — but there are three main function groups most solutions fall into. Each of these reflects a specific business function designed to address brands’ customer relationship needs.

Operational CRM. The main purpose of operational CRM systems is to help sales, marketing, and service teams better streamline customer interactions. These use various forms of automation to help provide customers with the best experiences. Salesforce and HubSpot are some of the most popular operational CRM tools.

Analytical CRM. Many CRM systems are designed to store vast amounts of data, but not all are effective when it comes to categorizing and drawing insights from it. Analytical CRM software can help marketers determine customer preferences and points of contact more easily through data warehousing, data mining and online analytical processing (OLAP). Zoho Analytics is a good example of an analytical CRM.

Collaborative CRM. Clear communication is key when it comes to sharing customer data across sales, marketing, and customer service departments, which is where collaborative CRM systems thrive. These use interaction and channel management features to give relevant teams a 360-view of customers. Microsoft Dynamics 365 and SAP Customer 360 are popular collaborative CRM systems.

Who uses CRM systems?

CRM software can be a valuable asset to all departments within your organization, which is why many brands have some form of it. 65% of salespeople used CRM tools in 2020, and it’s growing at a rapid pace — spending on CRM is expected to reach $96.5 billion by 2028, according to Grand View Research, Inc.

Enterprises and small businesses alike have found CRM software helpful in their lead management processes. But companies with the following qualities tend to get the most use out of them:

Businesses with sales teams.
Businesses with dedicated marketing teams.
Businesses with accounting teams.
Business with human resource departments.

There are also certain industries that use CRM systems more than others due to their innate compatibility.

Retail and e-commerce. While building relationships with customers is important to any enterprise, a CRM’s ability to encourage customer feedback makes it an important piece of retail marketing. It can also help them set goals and provide the product updates customers need.

Banking and financial services. With so much sensitive information involved in finances, brands need tools that can safely handle customer data. CRMs can offer banks and financial institutions custom solutions to ensure their customers’ finances are secure throughout each stage of the process.

Healthcare providers. CRM systems’ ability to synchronize and share vital health information makes them key assets for hospitals, doctors and other healthcare providers. They also assist in the process of gathering patient insights and providing better healthcare experiences.

Hotels and hospitality. The prioritization of customer service in hotels and hospitality is among the highest across industries. To keep up with the demand for good experiences, these organizations use CRM systems to improve communication with customers, ensuring satisfaction levels remain high.

Agriculture. CRM systems help agricultural workers build better relationships with suppliers, which in turn improves the purchasing process. They can also assist with logistics and transportation of equipment.

Consulting. Consulting practices rely heavily on operations, which can experience functionality issues over time. CRM systems help these companies establish consistent processes, all the while helping them keep up with increasing quantities of client work.

Insurance. Companies in the insurance sector often use CRM software to securely store customer information from multiple sources, essentially creating a comprehensive database that customers can access with ease.

It doesn’t matter what industry you’re in — CRM systems have the potential to improve interactions with customers and within your organization as a whole. At their core, they bring together people, technology and processes.

More B2B marketers are adopting account-based marketing than ever before. Find out why and explore the ABM platforms making it possible in the latest edition of this MarTech Intelligence Report.

Click here to download!

How to choose a CRM system

CRM software is designed to help growing companies manage their leads by storing the data in one accessible location. There’s no “wrong” time to adopt one (unless it conflicts with specific organizational requirements such as cost).

Many organizations forgo CRM adoption in favor of traditional customer data storage, relying on salespeople to handle the whole process or using a basic data warehouse. This can work for smaller companies such as startups, which would rather invest in other business aspects. But, at some point, these manual systems will likely fail, putting even greater strain on these companies.

Hesitancy for CRM adoption is understandable given the ever-changing marketing landscape. It’s often the case that brands can’t find adequate amounts of time to evaluate an entirely new system, much less train team members to use it.

But there are plenty of advantages that brands should consider before brushing off the idea. If teams are aligned throughout the CRM selection, implementation and optimization tasks, there’s less chance for major disruptions.

Brands dealing with large quantities of sales data coming from multiple sources may opt for a CRM to consolidate the information. Sales analysis is vital to successful customer acquisition, and without consistent processes, teams will find it more different to make decisions, leading to poorer outcomes and wasted resources.

Brands may have too few staff members available to handle the needs of a growing customer base. Companies in these situations may find CRMs helpful in their ability to organize, manage and connect with these customers.

In the end, your brand and customer needs are the determining factors for CRM adoption. If companies are having trouble connecting sales and marketing with their customers in engaging and sustaining ways, it could be time to streamline their efforts with a CRM.

How a CRM platform helps sales and marketing teams collaborate effectively

Many organizations are set up like silos with windows – each department performs its own tasks, isolated, with limited visibility into the other divisions. And in a world where more organizations are working virtually, this trend has only been exacerbated.

The advent of tools like Zoom, Slack, Microsoft Teams and the like has streamlined communications within teams to address this siloing. But brands need solutions that unify these departments and allow them to address customer needs seamlessly. This is where CRM comes into play.

A CRM platform can provide these teams with records and notes of conversations and interactions between departments and with customers, making it easier to sustain long-term relationships. The added transparency of these tools provides the foundation for much-needed trust between each group involved.

Many CRM tools even allow departments to work simultaneously on customer files, further preventing any discrepancies in the data. The increasingly popular cloud-based CRM solutions make this possible.

Historically, sales and marketing teams have had difficulties working together to drive the best outcomes. With a CRM, these departments can align their processes, collaborate effectively and, in turn, drive more sales.

How CRM enables personalization & personalized experiences

Customers want to feel cared for by brands, and brands show this most clearly through personalized experiences. But this is more easily said than done. Research from Forrester Consulting found that only one out of five marketing organizations was effectively personalizing content at scale. And another study from Gartner found that 63% struggle to deliver personalized experiences with digital technology.

To infuse their campaigns with the personalization consumers demand, more sales and marketing departments are turning to CRM solutions. These platforms can aggregate massive amounts of customer information, including prior conversations, preferences, questions, concerns or any other data they’ve consented to share. Brands, using a CRM, can leverage the insights gained to craft personalized customer experiences.

“Every contact we have with a customer influences whether or not they’ll come back. We have to be great every time or we’ll lose them,” says Kevin Stirtz, author of “More Loyal Customers.” Companies can ensure they don’t lose touch with customers through CRM software’s relationship-building capabilities, providing salespeople with the most pertinent customer information.

CRM platforms can also help marketing and sales teams predict the next best action for clients. After gaining a more complete understanding of customers, they can more easily guide them to personalized resources on your properties. This helps prove your value as a brand and build customer trust and loyalty.

These personalization capabilities allow CRMs to work effectively with email, social media and website communication; they support over 70% of account-based marketing (ABM) programs, according to the 2020 ABM Benchmark Survey Report.

ABM technology investment chart from survey data

A one-size-fits-all approach to customer relationships will inevitably fail. Brands need solutions like CRM platforms to communicate effectively with their customers, address their concerns in a timely manner and prove that they value their business.

How CRM software can help brands

While CRM software is far from being an all-in-one solution, its capabilities can offer brands much-needed support for their sales, marketing and customer relationship teams. Its ability to automate simple yet mundane tasks free up team members’ time so they can focus on their primary work.

This is perhaps why so many marketers replaced their CRM systems in 2021, opting for new versions to meet their needs.

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Businesses that have succeeded with CRM platforms tend to point to the following benefits:

Centralized customer data.
Improved task tracking.
Increased customer retention rates.
Automated tasks.
Increased sales opportunities.

However, brands shouldn’t expect automatic success with CRM software, especially if their organizational structure isn’t primed to handle it. More marketers are finding issues with many brands’ overreliance on CRM in their B2B stacks, which is why many organizations are demanding more flexible solutions — especially in a post-COVID world. But more than that, brands need to learn how to use whatever CRM system they choose effectively.

“Implementing a CRM system will do absolutely nothing for your business,” says CRM consultant Bobby Darnell. “However, the continued and effective use of it will.”

Building strong relationships between brands and customers is needed now more than ever, and the CRM systems of today seem ready to tackle the challenge. The societal upheaval brought on by the 2020 pandemic left many brands struggling to connect with audiences as they once had, which is most likely why the CRM market grew 10.9% that year and is expected to grow to $128.97 billion by 2028.

The solutions offered by these systems have the potential to help brands effectively connect with customers no matter where they enter the sales cycle. To attract and retain them, marketing and sales teams should consider exploring the capabilities of a CRM.

Snapshot: Marketing automation

For today’s marketers, automation platforms are often the center of the marketing stack. They aren’t shiny new technologies, but rather dependable stalwarts that marketers can rely upon to help them stand out in a crowded inbox and on the web amidst a deluge of content.

HubSpot noted late last year that marketing email volume had increased by as much as 52% compared to pre-COVID levels. And, thankfully, response rates have also risen to between 10% and 20% over their benchmark.

To help marketers win the attention battle, marketing automation vendors have expanded from dependence on static email campaigns to offering dynamic content deployment for email, landing pages, mobile and social. They’ve also incorporated features that rely on machine learning and artificial intelligence for functions such as lead scoring, in addition to investing in the user interface and scalability.

The growing popularity of account-based marketing has also been a force influencing vendors’ roadmaps, as marketers seek to serve the buying group in a holistic manner — speaking to all of its members and their different priorities. And, ideally, these tools let marketers send buyer information through their tight integrations with CRMs, giving the sales team a leg up when it comes to closing the deal. Learn more here.

About The Author

Corey Patterson is an Editor for MarTech and Search Engine Land. With a background in SEO, content marketing, and journalism, he covers SEO and PPC to help marketers improve their campaigns.

MARKETING

The key to correcting the C-suite trust deficit

Published

13 hours ago

May 6, 2024

Entireweb News Bot

The key to correcting the C-suite trust deficit

Take a moment to search “CMO tenure” and you’ll find a wide variety of content discussing the short tenure of CMOs and how it’s among the shortest of roles in the C-suite. If you dive deeper, you’ll find that CEOs don’t seem to trust CMOs.

Boathouse’s CMO Insights study (registration required) noted several sobering conclusions:

34% of CEOs have great confidence in their CMOs.
32% of CEOs trust their CMOs.
56% of CEOs believe their CMO supports their long-term vision.
And only 10% of CEOs believe their CMO puts the CEO’s needs before their own.

If these statistics also apply to the CMO’s entire organization, then it’s clear we have a trust problem with marketing leadership.

If you haven’t read Patrick Lencioni’s “The Five Dysfunctions of a Team,” I consider it required reading for anyone in any leadership role. In his book, Lencioni builds a pyramid of dysfunctions that need to be addressed for a team to succeed. The foundational dysfunction — with which one cannot build a successful team — is “absence of trust.” We see it at scale with marketing organizations today.

Introducing objectivity through data

In “Hamlet,” Shakespeare writes, “There is nothing either good or bad, but thinking makes it so.” Each organization that makes up a company looks at the company from a different perspective. What marketing sees as positive, finance may see as negative. But who’s right? No one.

Usually, there is no objectivity because leadership comes up with an idea and we execute it. It’s like the fashion proverb “Beauty is in the eye of the beholder.” Unfortunately, we’re going to struggle to run a profitable organization if it’s run like a fashion show.

Therefore, we need to introduce objectivity to how we work. Leadership needs to come together to agree on goals that align with the goals of the broader organization. One element of this conversation should be an acknowledgment that this is turning a ship.

Often leaders — especially those without marketing backgrounds — are likely to expect instant gratification. It’s going to take time to turn the ship and you and your team would do well to set reasonable expectations right away.

Dig deeper: KPIs that connect: 5 metrics for marketing, sales and product alignment

Aligning goals and metrics across the organization

With goals in hand, we need to assign metrics to their progress and agree on the source(s) of truth. Once these objective measures are in place, perspective doesn’t matter. 2 + 2 = 4 regardless of whether you’re in HR or accounting.

Every public road has a speed limit and whether you’re in compliance with it has nothing to do with your perspective. If you’re above it, you’re wrong and subject to penalties. Referring to the fashion example, it’s not a fashion show where some people like a dress and others don’t.

By using data to objectively measure marketing’s progress within the organization and having the rest of the leadership buy into the strategy, we build trust through objectivity. Maybe the CEO would not have chosen the campaign the marketing team chose.

But if it was agreed that a >1 ROAS is how we measure a successful campaign, it can’t be argued that the campaign was unsuccessful if the ROAS was >1. In this example, the campaign was an objective success even if the CEO’s subjective opinion was negative.

Data-driven campaign planning

Within the marketing organization, campaigns should always be developed with measurement top of mind. Through analysis, we can determine what channels, creative, audiences and tactics will be most successful for a given campaign.

Being able to tell the leadership team that campaigns are chosen based on their ability to deliver measured results across metrics aligned to cross-departmental goals is a powerful message. It further builds trust and confidence that marketing isn’t run based on the CMO’s subjective opinions or gut decisions. Rather, it’s a collaborative, data-driven process.

For this to be successful, though, it can’t just be for show, where we make a gut decision and direct an analyst to go find data to back up our approach. This would be analytics theater, which is a perversion of the data. Instead, tell the analyst what you think you want to do and ask them to assess it.

For the rest of the organization’s leadership, ask questions when the marketing team presents a campaign. Find out how they came up with the strategy and expect to hear a lot about data — especially the metrics you all agreed would support the company’s overarching goals.

Dig deeper: 5 failure points of a marketing measurement plan — and how to fix them

Data literacy: Building credibility through transparency

Building trust doesn’t happen overnight, but a sustained practice of using data to drive marketing leadership’s decisions will build trust if the metrics ladder up to the organizational goals and all of leadership is bought into the measurement plan.

Over time, this trust will translate into longer tenure and more successful teams through building the infrastructure needed to tackle Lencioni’s five dysfunctions.

Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.

MARKETING

How Tagging Strategies Transform Marketing Campaigns

Published

1 day ago

May 5, 2024

Entireweb News Bot

How Tagging Strategies Transform Marketing Campaigns

As a marketer, I understand how today’s marketing campaigns face fierce competition. With so much content and ads competing for eyeballs, creating campaigns that stand out is no easy task.

That’s where strategies like tagging come in.

It helps you categorize and optimize your marketing efforts. It also helps your campaigns cut through the noise and reach the right audience.

To help you out, I’ve compiled nine ways brands use a tagging strategy to create an impactful marketing campaign.

Let’s get to it.

How Brands Use a Tagging Strategy

Tagging involves using keywords or labels to categorize and organize content, products, or customer data. You attach tags to specific items or information to make searching, sorting, and analyzing data easier.

There are various types of tags, including meta tags, analytics tags, image tags, hashtags, blog tags, and more.

So, how do brands use a tagging strategy to make their marketing campaigns stand out?

Improve Social Media Engagement

With over 5 billion users, social media provides an easy way to connect with your audience, build relationships, and promote your offerings.

1714881365 414 How Tagging Strategies Transform Marketing Campaigns

Use a tagging strategy to boost social media interactions. Consistently use hashtags that align with current trends and topics. This encourages people to interact with your content and boosts content visibility.

You can also use tags to monitor brand mentions of your products or your industry. This allows you to engage with your audience promptly.

Consider virtual social media assistants to streamline your tagging strategy. These AI-driven tools can suggest relevant hashtags, track mentions, and automate responses. Implementing them can save time and resources while ensuring consistent engagement across your socials.

Build a Personal Brand on LinkedIn

LinkedIn is the world’s largest professional networking platform, with over 1 billion members across 200 nations. It offers excellent opportunities for individuals and businesses to build and nurture their brands.

1714881366 482 How Tagging Strategies Transform Marketing Campaigns

However, simply creating a professional profile isn’t enough to build a personal brand on LinkedIn.

Use various tags to increase your visibility, establish thought leadership, showcase expertise, and attract the right connections. For instance, use skill tags to showcase your expertise and industry tags to attract connections and opportunities within your industry. Use certification tags to help showcase your expertise and credibility to potential employers or clients.

Facilitate Customer Segmentation and Personalization

Personalization matters—more so in today’s data-driven world. In fact, 65% of consumers expect your brand to adapt to their changing preferences and needs.

To meet this expectation, consider using a tagging strategy.

Segment your customers based on shared characteristics, such as demographics, interests, purchase history, cart abandonment, and behavior.

Here’s a summary of the steps to customer segmentation.

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With your customer segments ready, use tags to tailor your marketing messages and offerings to specific segments. Imagine sending targeted email campaigns based on what your customers need. That’s the power of segmentation and tagging in action!

Enhance SEO and Content Discoverability

Tagging content can have a profound impact on search engine optimization (SEO) and content discoverability. When users search for specific topics or products, well-tagged content is more likely to appear in search results, driving organic traffic to your website.

Additionally, tags can help you analyze the most popular topics with your readers. Then, the results of this analysis can help you adjust your content strategies accordingly.

And get this— certain AI tools can help analyze your content and suggest relevant tags and keywords. Using these tools in addition to a tagging strategy can help optimize your SEO strategies and boost content discoverability.

Partner with the Right Influencers

Influencer marketing has become a go-to marketing approach for modern brands. Recent stats show that 85% of marketers and business owners believe influencer marketing is an effective marketing strategy.

But how do you find the perfect influencer for your campaign?

Utilize tags to identify influencers who are relevant to your niche. Beyond this, find influencers who align with your brand values and target audience.

Additionally, look for influencers who use hashtags that are relevant to your campaigns. For instance, fashion influencer Chiara Ferragni uses #adv (advertising) and #ghd (good hair day) hashtags in this campaign.

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Monitor industry-specific hashtags and mentions to discover influential voices and build profitable relationships with them.

Track Hashtag Performance

Tracking your hashtag performance helps you understand your campaigns’ engagement, reach, and effectiveness.

To achieve this goal, assign special hashtags to each marketing project. This helps you see which hashtags generate the most engagement and reach, enabling you to refine your tagging strategy.

Here’s an example of a hashtag performance report for the #SuperBowl2024.

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This curated list of hashtag generators by Attrock discusses the top tools for your consideration. You can analyze each and choose the one that best fits your needs.

Categorize Content Accordingly

The human attention span is shrinking. The last thing you want is for your audience to have difficulty in finding or navigating your content, get frustrated, and bounce.

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Untagged content can be difficult to navigate and manage. As any marketer knows, content is important in digital marketing campaigns.

To categorize your content, identify the main categories by topics, themes, campaigns, target audiences, or product lines. Then, assign relevant tags based on the categories you’ve identified. After that, implement a consistent tagging strategy for existing and new content.

Organizing your content using tags can also help streamline your content management workflow. Most importantly, readers can easily find the content they’re looking for, thereby boosting overall user experience, engagement, and conversions.

Boost Your Email Marketing Strategy

Email marketing remains a powerful marketing tool in today’s digital world. It’s also another area where brands use a tagging strategy to directly reach their target audience.

Use tags to segment your email list and personalize your marketing messages. Then, you can send targeted emails based on factors like purchase history, interests, and demographics.

Personalization can significantly improve open rates, CTRs, and overall engagement and conversion rates. It’s a simple yet impactful strategy to make your email marketing strategy more effective.

Plus, you can use tags to track how well your emails perform with each group. This helps you understand what content resonates best with your audience and provides insight on how to improve your emails going forward.

Enhance Analytics and Reporting

Every marketer appreciates the immense value of data. For brands using tagging strategies, tags are powerful tools for gathering valuable data.

Analyze how users interact with your tagged content. See which tags generate the most clicks, shares, conversions, and other forms of engagement. Gain insight into audience preferences and campaign effectiveness.

This granular data about your marketing efforts allow you to make data-driven decisions, allocate resources effectively, and refine your marketing strategies.

Final Thoughts

There isn’t a single correct way for brands to use a tagging strategy in marketing. You can use a tagging strategy however you see fit. However, the bottom line is that this strategy offers you a simple yet powerful way to create attention-grabbing and unique marketing campaigns.

Fortunately, tagging strategies are useful across various marketing initiatives, from social media and email marketing to SEO and more.

So, if you’re ready to elevate your marketing campaign, build a strong brand presence, and stand out among the competition, consider employing effective tagging strategies today.

MARKETING

Tinuiti Recognized in Forrester Report for Media Management Excellence

Published

2 days ago

May 4, 2024

Entireweb News Bot

News

By Tinuiti Team

Apr 30 2024

Tinuiti, the largest independent full-funnel performance marketing agency, has been included in a recent Forrester Research report titled, “The Media Management Services Landscape, Q2 2024.” In an overview of 37 notable providers, this comprehensive report focuses on the value B2C marketing leaders can expect from a media management service provider, and analyzes key factors to consider when looking for a media management partner such as size and business scenarios. B2C marketing executives rely on media management services to:

Augment the efficacy of media investments
Bridge media impressions to commerce transactions
Enhance ad campaigns to drive performance

Report authors, VP, Principal Analyst Jay Pattisall and Senior Analyst Nikhil Lai call attention to the pressing need for providers to prove their value, deliver profitable ROAS, and drive alignment between CMOs and CFOs and thus liberate strained marketing budgets.

Our Always-On Incrementality tool – which is a part of our patented tech, Bliss Point by Tinuiti – empowers marketers to validate the incrementality of their spend on each ad set, media channel, and marketing tactic so marketers can create stronger, more focused campaigns that get the job done without sacrificing the bottomline.

B2C marketing leaders often seek and expect key business scenarios from media management service providers including media measurement and attribution, data strategy, and marketing mix modeling. MMM’s adaptability to the post-cookie/ post-IDFA world positions it as an essential tool for marketers. As businesses seek to connect the dots, leverage data, and make strategic decisions, MMM is a crucial ally in the dynamic realm of mixed media advertising. Our Rapid Media Mix Modeling sets a new standard in the market with its exceptional speed, precision, and transparency.

According to the Forrester report, “46% of senior B2C marketing and advertising decision-makers say they plan to integrate performance and brand media assignments with a single media agency in the next 12 months…”

In our quest to better understand all revenue-driving aspects of a given campaign, we have started on a process to quantify the impact of Brand Equity, which we believe is one of the largest missing pieces in more accurate and complete measurement.

Learn more about Bliss Point by Tinuiti, our use cases, and our approach to performance and brand equity.

The Landscape report is available online to Forrester customers or for purchase here.