As humans, we can grow in two ways: vertically and horizontally. What we use to fill our bellies will determine our future health. As genetics and a healthy diet in our youth influences vertical growth, a double-bacon cheeseburger nestled greasily between two halves of a caramel-toasted waffle bun has the uncanny ability to influence growth perpendicularly to our vertical counterpart. Oh, the power that resides in fat and sugar.
Compare human bellies to your customer database (you know I was going to do this) and you’ll find an interesting difference besides the in-your-face obviousness of a slimy, muscular sac-like organ on one hand and logic programming with data, on the other. The difference is that when building your CRM database, both vertical and horizontal growth is a good thing. Grow the amount of customers you have while simultaneously growing their details. As a human, though, you may want to stay away from the horizontal growth inducing cheeseburger.
This is not to say that when it comes to your CRM, all growth is good. Just as what goes into your belly determines your bodily health, what goes into your CRM database determines the health of your business. If you don’t have the ‘Right Customers’ in there, (I mean the ones that buy from you) then I hate to say it, but your database is not very useful. According to the Pareto Principle, also known as the 80/20 Rule, 80% of your sales come from 20% of your customers. That’s why it’s vital to make sure your database is full of the ‘Right Customers’ to ensure that the 80% of your sales is a high amount.
How do you make sure the ‘Right Customers’ are in your customer database?
Identifying who your loyal customers are within all your customers will give you a starting point to try and turn your one-off customers into loyal ones, thus increasing the amount of ‘Right Customers’ in your database.
Our advice is to firstly focus on your brick and mortar stores.You have an opportunity in-store to create a connection with customers in so many ways that you just can’t online. You can give them exceptional human-to-human customer service in an ambiance that you’ve created that sets the mood for a memorable shopping experience. Customers can touch and feel products and you can provide incentives to return for another memorable experience. You can run awesome in-store campaigns to capture first-party data. It’s easier to win over loyalty in real-time with real-life. You can win over customer loyalty online too, but with more of a challenge as the experience is less personal and thus, quite different.
Why not use the in-store advantage to vertically fill your CRM database with the ‘Right Customers’ and then follow-up horizontally online after checkout to ensure your customers become repeat customers?
After all, repeat customers are the ‘Right Customers’ that will keep your CRM database healthy and those who use your database, happy.