Creating a Profitable CRM Strategy for Your Business
To run a successful (and profitable) business you need to make certain that you’re generating fresh leads, converting them, and then retaining those customers for as long as you can.
With marketing and lead generation costing five times more than retention it makes a lot of financial sense to keep the clients you’ve already won. But to grow you need more of the same.
This is where a good strategy comes into play and where, when you use it effectively, a CRM will help you maintain and grow your business.
We thought we’d share a strategy with you to help you make the most of a CRM like SalesRadar. Used effectively, this will help you grow your business whilst keeping your current customers happy, too.
Before we get into the CRM itself we need to look at how you’re going to fill it with juicy leads and new customers. Understanding exactly who you’re trying to attract will go a long way to improving your marketing and give you the ideal customers and clients.
If you haven’t carried out an exercise on building a customer avatar then we recommend that you do. Simply put: it’ll change your marketing and make it work harder and more successfully. How can you know what to say or where to advertise if you don’t know who you’re looking for?
Simply put, here’s what you must do if you’re to attract the right people to your business.
- Decide who your ideal customer is with characteristics and other important factors like demographic, age, wants and needs, and even what type of media they prefer to engage with.
- Work out what makes them tick and what keeps them awake at night. Maybe they worry where their next customer is coming from. What emotion do they feel when they’re struggling with their life? Try to dig deep on this as it will help you with the next stage.
- Now that you know their ‘pain’ you can create marketing that appeals to it or fixes it. If you’re an accountant and you ‘take the pain’ of submitting your tax return away and you know your ideal avatar is terrible at this – then make sure they know you understand but also that you can fix it so they don’t need to worry.
- Work out what else they’re interested in, too. Build an avatar that lives and breathes and even give them a name. It will help you and your team make sure that whenever they’re working on their marketing they can have this person in mind.
Now you can build all your marketing around this avatar. Speak to their pains and show them the way to success. Without this approach you will simply be all to everyone and this reminds us of a brilliant quote by the great Seth Godin:
“If you persist in being all things to all people, you will fail. The only alternative, then, is to be something important to a few people”.
Define your sales funnel and business strategy
Once you’ve got your target in your sights it’s time to build a solid strategy to get them on board with you.
- How will your sales and marketing funnel work?
- At which points do you need to call them? Email them? Are there other ways to contact them?
- How do you follow-up with a lead?
- What types of marketing will you use?
- How many products/services do you have and how do they fit into your funnel?
A sales funnel can sound very complicated but it doesn’t need to be. The simplest way to look at it all is to start small and build. The aim of a sales funnel is to help people progress towards the sale and then onto the next bigger sale.
Here is a simple funnel for a car mechanic to explain what we mean:
- Free (top of the funnel). To engage people and attract customers to them, the car mechanics appeal to the ‘pain’ of their customers with free content. Blogs, emails, leaflets, Facebook Ads even simple local newspaper advertorials all aim to give value, help, engage and get noticed.
- Free winter check (top of the funnel). When this marketing piques the interest enough, the potential customer who is already in the funnel will be encouraged to try them out for free. The content is great, but next you need action and action with the mechanic. It’s a relationship builder. A free winter check is a simple and quick way to meet and greet but also build trust and try to up-sell.
- Small fee (neck of the funnel). When someone trusts the mechanic enough, they might want some of the advisories from the winter check. Maybe they need an MOT (sub £50) or some new wiper blades thanks to the poster in reception. A small sale is a commitment and now the customer in really moving into the funnel.
- Future sales (middle of the funnel). A sensible mechanic will now ask for the MOT and service dates from the customer. When do they need to come back? When did they last have a service? An oil change? Add these dates into their profile and then remind them weeks in advance to save them driving uninsured or having a car that’s badly maintained. Anything that helps people live a less stressful life is welcomed.
And then you can move the customer onto annual contracts, offer to sell them tyres and parts, and even get them on to car sales if that’s part of the business.
They key is to build trust with free, gain commitment with a small sale, and then make sure you know when the next bigger sale might come along. Obviously it’s easy with cars as MOTs and services are very date-specific, but we bet you can build this model into your business based on data and experience.
Using social media
Social media is a great tool and used well can help you listen as well as market your business. Twitter is superb for social listening and LinkedIn is incredibly targeted even using the free version.
Again, go back to your ideal client and their pain and search them out. Find them talking about it, or simply connect on sites like Twitter, Facebook and LinkedIn so that they can see you. Demonstrate that you understand their pain and – more importantly – you can fix it!
Social media can be a mix of paid ads, searches, hashtag conversations, and list building. There’s a load of areas you can manipulate to help you and your business and much of it is untapped by businesses on social media so have a really good look. Here’s a guest blog for further reading on this.
Got a lead? Met a new connection that fits? Excellent, well done. Now it’s time to get serious about converting them. You’ll need to ensure they know you’re interested in working with them whilst avoiding being annoying and spammy. Given that the majority of business is done on the fifth time of asking, you might want to get more focused on your follow up.
80% of sales leads never get followed up! Particularly after networking events. Don’t be in the 92% of businesses who fail to follow up – get a system in place into your CRM and follow it!
Collating and using the right data
And then you can get really clever. One of the powerful elements of a CRM is to record loads of data on your clients and customers… but this doesn’t have to be just the obvious.
What coffee do they drink? What do they read? Where do they go at the weekend? What are the names of their kids? What car do they drive?
You don’t need to get all private detective on this – just head to social media. A quick scan through social media will give you one, two or all of these answers and more. Then, when you follow up you can ask personal questions and start the conversations about them. After all, it’s their favourite subject!
When you talk, email, or meet your clients get a simple system in place to record the key areas of the conversation. We like to take notes and record the key info right into their SalesRadar contact on the app after the meeting. You can even do this in the car before you set off!
Progressive Businesses Grow and Nurture…
Then you can use all the data, conversations, and touchpoints to build a simple system to keep in touch with the ones you convert.
Set reminders to check in, call, or even send important clients thoughtful or useful gifts in the post. This doesn’t have to cost a lot of money. Just remember the cost of retention versus the cost of acquisition and you’ll be more likely to make this happen.
Build an audience in SalesRadar and call it “Check in”.
An audience is simply a list of tasks that you can add to any contact at any time.
Add in some touch points to your audience and then add every new client to it in your onboarding process – simple.
Here’s an example where we use the mechanic again.
- Send a welcome (branded) air freshener to new clients.
- Add in a task to add their MOT and service dates and set reminders.
- In a month’s time, send an email with some top tips on saving fuel.
- In three months’ time send out some direct mail with a link to a Spotify playlist for calm and relaxed driving (don’t include Bat out of Hell by Meatloaf which is the top track for increasing speeding according to the driver awareness training in the UK).
- In six months time, if you’ve not serviced or MOTed their car, remind them you exist with a simple piece of direct mail showing them how to get the most out of some simple aspects of their car, engine, or similar.
Nurturing and checking in with current clients or those in your funnel will convert more leads. Customers have a choice of car mechanic so you need to be helpful and memorable. What’s stopping other garages doing this? Nothing. So build a system to help you stay front of mind.
You can sign up to SalesRadar for FREE right here. Make a start today to stay front of mind.