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CRM software
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How CRM can improve the customer experience

How CRM can improve the customer experience

How CRM can improve the customer experience

What is a CRM system and how does it affect the quality of customer relationships?

In English, CRM, or "Customer Relationship Management," refers to software that is used to collect business-related data and customer information. This tool enables customer relationship management for both B2C and B2B transactions.

Nowadays, it is indispensable in the e-commerce industry because it improves customers' interaction with the offer, which consequently increases their loyalty and satisfaction.

CRM systems are now capable of automating tasks and processes, as well as personalizing customer service. When properly implemented, they can significantly improve sales metrics at various stages of the process, while improving the quality of customer service and closing any gaps in customer care.

It is worth noting that CRM is not only a tool related to customer service; it can also significantly improve the efficiency of your own work.

table of contents:

  1. Ironclad rules for improving customer service quality
  2. Relationship management and customer experience - key metrics
  3. How do CRM systems support effective customer service?
  4. Benefits of using CRM systems in customer service
  5. How does customer service support sales and marketing?
  6. FAQ - Frequently Asked Questions

Ironclad rules for improving customer service quality

We won't surprise anyone if we say that listening to customers is crucial to achieving our goals. Ultimate success often depends not only on the tool itself, but on our skillful use of it. Also important is the ability to manage the data and interpret it properly.

Surveys are an invaluable tool in gathering feedback from customers. They are the ones who will best express their feelings and needs regarding your products and services. By regularly collecting and analyzing this feedback, you will be able to improve your offerings and respond to any customer concerns. Consider sending out surveys to understand exactly what your customers think. For example, if the results of the surveys reveal that your customers' biggest problem is long waits for customer service, you will have specific tips to help you make improvements.

Personalization of communications in offers is key to effective customer relationship management. Most CRM systems enable this personalization by using basic information about customers and their previous behavior, such as on a store's website. An example is sending a personalized message to customers who have not made a purchase in the last 30 days or have abandoned their shopping cart. In such a case, we can send them a special discount code, an improved offer or a reminder about an uncompleted purchase, which can increase the chances of a transaction.

Providing fast and efficient customer service is one of the key advantages that can significantly affect customers' perception of your company. With CRM systems, you can efficiently organize customer contacts, plan subsequent interactions on a calendar and assign specific cases to the appropriate team members. It is worthwhile to implement appropriate procedures (workflow) that allow employees to assign a customer to themselves, which allows you to create individual relationships with customers.

Building lasting relationships with customers is key, as it is these long-term contacts that can influence purchasing decisions. An example is marking a customer as a VIP in your CRM system and tracking their behavior and preferences. Based on this data, you can deliver personalized offers, such as exclusive invitations to product launches tailored to that customer. It's also a good idea to record the dates of important occasions, such as birthdays, although due to RODO regulations, alternative methods are often used, such as celebrating a customer's registration anniversary as a form of gift or discount.

Relationship management and customer experience - key indicators

Assessing customer loyalty in e-commerce is important for long-term business success. Here are some popular metrics that can be used to measure customer satisfaction and loyalty in e-commerce:

Retention Rate

It is the percentage of customers who return and make repeat purchases over a specified period of time. A high retention rate indicates customer loyalty.

We calculate as follows: Repeat Purchase Rate = (Number of repeat customers / Total number of customers) * 100
  • Bad: Below 60%
  • Normal: 60-80%
  • Good: Above 80%.

Conversion Rate

Measures the percentage of website visitors who make a purchase. An increase in the conversion rate can indicate increased customer satisfaction.

Customer Lifetime Value (CLV)

It's a calculation of the future profits that a given customer will bring to the company over the course of its buying cycle. Higher customer lifetime value can mean higher loyalty.

Bounce Rate

Measures the percentage of people who visited a website but left quickly without making a purchase. A low rejection rate is usually positive.

Cart Abandonment Rate

Refers to customers who added products to the shopping cart but did not make a purchase. Can provide information about the reasons why customers abandon purchases.

Customer Review and Rating index

This is customer ratings and reviews of products and services. Positive reviews can indicate customer satisfaction.

Net Promoter Score (NPS)

Measures the propensity of customers to recommend a company to others. A higher NPS suggests greater customer loyalty and satisfaction.

We calculate as follows: NPS = (Percent of promoters - Percent of detractors) * 100.
  • Bad: 0-10
  • Normal: 0-30
  • Good: Above 30
  • Ideal: Above 50

Session Duration

Determines how much time customers spend on the website. Longer session duration may indicate greater customer engagement and interest.

Repeat Purchase Rate

This is the percentage of customers who purchase repeatedly. A higher rate suggests loyalty and trust in the company.

Loyalty Program Participation

Measures how many customers take advantage of loyalty and rewards programs. Active participation in such programs can mean greater loyalty.

A good approach is to use several different metrics to get a comprehensive picture of e-commerce customer loyalty and adjust business strategy accordingly.

Customer Winback Rate

This indicator refers to the percentage of customers who restarted active use or made a purchase after a period in which they were inactive.

We calculate as follows: Customer Winback Rate = (Number of recovered customers / Total number of lost customers) * 100
  • Bad: Below 10%
  • Normal: 10-20%
  • Good: Above 20%.

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How do CRM systems support effective customer service?

CRM systems are state-of-the-art solutions that facilitate customer relationship management at all stages of the purchasing process. What are the advantages of implementing a CRM system in the area of customer service?

Handling more inquiries

CRM systems offer many benefits, and one of the main ones is the ability to handle more customer inquiries. They make it possible to effectively manage and monitor all customer requests and inquiries. This, in turn, enables customer service staff to respond effectively to inquiries and provide customers with the fastest possible responses.

Automation of some of the queries

CRM systems use rules and automated responses to respond to specific inquiries without the need for customer service staff to intervene. This functionality is particularly useful for frequently recurring inquiries, which can be easily automated.

Gathering customer histories

CRM systems enable the collection and storage of customer information. This gives customer service staff access to the full history of customer interactions. This allows them to better understand the customer's needs and tailor service to their individual needs. Service personnel can easily check order history, previous contacts and customer preferences, which influences the final evaluation of customers.

Generating team reports

By generating reports, managers can track the performance and efficiency of their customer service team. Reports can include metrics such as call processing time, number of questions resolved and customer satisfaction levels. With these reports, the team's progress can be monitored and areas for improvement can be identified.

Benefits of using CRM systems in customer service

CRM software brings numerous benefits to both companies and customers. Let's take a look at the key benefits of using the system in customer service.

Improving customer relations

With the collected data on customers and their interaction history, service staff become more aware of customers' needs and preferences. This makes it possible to tailor service to individual customer expectations and build stronger relationships with them.

Increase the efficiency of business processes

The use of CRM systems allows you to automate many processes related to customer service. This saves you time and resources, and reduces the risk of mistakes. As a result, your company can operate more efficiently and serve more customers more effectively.

Better understanding of customer needs

By collecting data and analyzing customer information, CRM systems enable a more precise understanding of customer needs. This, in turn, allows your company to tailor your product and service offerings to the individual needs of each customer, as well as to accommodate different customer groups. The result of this approach is increased customer satisfaction and a greater chance of repeat purchases.

How does customer service support sales and marketing?

Customer service is crucial to successful sales and marketing efforts, although this may seem somewhat unexpected. There are many ways in which customer service can help boost sales and improve the performance of marketing efforts. Here are some examples:

  1. Increased customer retention: Excellent customer service encourages customers to remain loyal and continue purchasing in the future.
  2. Whisper marketing: Satisfied customers often recommend a company to their friends, which can bring in new customers. Recommendations from existing customers are one of the most powerful marketing tools.
  3. Positive feedback and reviews: A competent customer service team can contribute to positive feedback and reviews. These reviews can attract new customers and build trust in the brand.
  4. Source of feedback: Customers often share their opinions and suggestions when interacting with a company. This information is valuable to marketing and sales departments, helping them adjust their strategies to meet customer needs.

FAQ - Frequently Asked Questions

Which CRM to choose?

If you are wondering which CRM system to choose, we invite you to take a look at our system comparison ranking.

How to avoid mistakes and negative feedback in customer service?

First of all, it is worth listening to feedback and listening to customer opinions.