The impact of CRM on customer lifetime valueSchedule a Free Demo
One of the mistakes that moving companies often make is that they only focus on finding new customers. While being able to find customers is a valuable skill, it is worth recognizing that you aren’t limited to doing business with them only once. Cost-effective moving companies always try to recognize the lifetime value of their customers. And to help you become one, we will use this article to cover the impact of CRM on customer lifetime value.
Understanding customer lifetime value
First, let’s explain what customer lifetime value is all about. As the name suggests the customer lifetime value is the value you get from your customer over a long period of time. In the context of moving, this means that you don’t only calculate how much you will get from a single relocation. But, you also factor in future relocations, purchase of packing supplies, recommendations to friends and family, etc. As you can see, every customer has the potential to be quite valuable to your company. This is why most companies use CRM for packers and movers to help improve their customer’s lifetime value.
Impact of CRM on customer lifetime value
As it turns out, a CRM system can be quite beneficial in improving your customer’s lifetime value. In fact, you’ll have a hard time doing so effectively, if you don’t make use of various CRM functionalities. Here is what we have in mind:
Understanding your customers
The first way in which a CRM system can help you with improving customer lifetime value is that it allows you to understand your customer base. With a CRM system, you can look to gather customer data and make in-depth analytics. With those, you can gain a better understanding of what your customer base is truly like.
Keep in mind that the process of improving the customer’s lifetime value can be drastically different based on who constitutes your customer base. For instance, if you mainly provide moving services to students, you would look to step up your marketing at the beginning and the end of the school year. If you work with family people, you would focus more on incentivizing them to recommend you to their friends. Different demographics have different potentials for increasing their value. And it is only through a CRM system that you can identify the right aspect to work on.
Re-engaging customers is always a good idea. Seeing that the entire process can be automatized, you hardly have a reason not to try to offer your services to previous customers. But, you can hardly hope that a generic email will be enough to gain interest from previous customers. In practice, standard marketing will only lead to you getting pushed to spam. Luckily, this is where CRM email marketing for moving companies comes in handy.
With it, you can look to personalize your marketing and ensure that your customers will actually find it interesting. Both the timing and the phrasing of your emails need to be on point if you are to gain their interest. And with a CRM you will not only know what your customer is like, and phrase your emails accordingly. But, you will also be able to monitor the performance of your emails and make timely alterations if need be.
Using customers to find customers
One of the best ways to get new customers is to have your old customers recommend you. Offering a service worth recommending, is a necessary step. But, to ensure that you get as many recommendations as possible, you really ought to work on customer impression. In this regard, a CRM system can be quite valuable. Namely, by knowing what your customers are like, you can look to reconnect them with and ask for a recommendation.
While there are countless ways to do so, two seem to be the most effective. You either ask them to review you right after moving and then later use their review in your marketing. Or, you provide incentives for customer-to-customer recommendations (say a 10% discount). Such steps don’t cost much when it comes to recourses but can gain you a tremendous amount of new customers.
Better customer satisfaction
Having satisfied customers should be a goal of any responsible moving company. A satisfied customer will not only recommend you to their friends and family but will also likely work with you again if need be. Therefore, a satisfied customer has great lifetime value. Luckily, by properly using a CRM you can effectively work on customer satisfaction.
By analyzing your customer base you can look to meet customer needs before they are even aware of them. Furthermore, you can look to address customer concerns, troubles, and complaints on a personal level, therefore ensuring that they feel appreciated. This ability to quickly outline and analyze customers is why a CRM is a must-have lead tracking software for moving companies. Therefore, you will have to rely on it, sooner or later.
In conclusion, it is important for a moving company to improve the lifetime value of its customers. By now you should have a basic understanding of the impact of CRM on customer lifetime value. It will enable you to properly understand your customers and how to approach them. By doing so, you can look to increase their satisfaction with your company, which is one of the most important aspects of improving lifetime value.
You can incentivize your customer to recommend your company to their friends and family. And you motivate them to work with you again, once they need moving services. In most cases, these efforts will be far less costly than constantly trying to find customers with standard marketing methods. And seeing that you need to rely on your CRM for various things, it only makes sense to also use it for improving customer lifetime value.