Monday, July 01, 2013

Mobile technology allows for 2-way communication increasing both loyalty and A&P effectiveness



Yesterday my attention was drawn by an article published on Techcrunch on the power of CRM using mobile.


Many businesses are leveraging CRM for their web and retail businesses, but have yet to apply their CRM strategy to mobile customers. This is a missed opportunity for many companies. Mobile technology allows for 2-way communication increasing both loyalty and A&P effectiveness. Thanks to the mobile application a company can now relatively easily (cost efficient) build a “personal” relationship with each customer. 

Companies can leverage this “personal” relationship in several ways:

·          Tailored promotions and advertisement through direct communication channel
o   Tailored messaging: Companies know who the individual customer. Both the customer profile and behavior can be tracked. Customers can therefore relatively easy be segmented. Based on characteristics of the segment, the company can provide tailored promotions or advertisement
o   Delivery of messaging is possible due to the direct channel than mobile offers. As a company you know you reach the right customer.
§  Push notifications
§  Email

·         Continuous measurement of return of investment
o   Metrics on customer purchases and promotion effort can easily be measured. Product offering and pricing can be better optimized using this information (again segmentation is very important here) 

·         Continuous learning and improvement of proposition
o   Easy access to customer service
o   Direct feedback mechanism
§  Right after an offline purchase customer can for example receive a customer satisfaction questionnaire on their phone

·         Increase user engagement/loyalty
o   Stimulate repurchase
o   Increase cross-sell/share of wallet
o   Stimulate referrals (lower acquisition costs new customers)

I truly believe that for many retailers mobile CRM is a huge opportunity to increase the ROI of each customer by tailoring the product offering while also decreasing the cost to serve each customer. Important is to remember that the CRM through the Mobile channel needs to be seamlessly integrated with the CRM used in other channels to ensure a satisfactory customer experience across all channels a customer interacts with the company.    

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