-->
  • October 30, 2024
  • By Joe Rueckert, senior director of customer engagement, the Lacek Group

Reframing CRM from Tactical Tool to Engagement Methodology

Article Featured Image

The acronym CRM, which stands for customer relationship management, is tossed around liberally, but it isn’t widely understood in a comprehensive way. CRM is often viewed primarily as data and technology rather than a methodology to help brands understand audience needs, deliver rational and emotional value, and measure impact. Most CRM definitions and implementations focus on the how while often overlooking the why.

Even with a narrow focus on the how, upwards of 70 percent of CRMs fail. Often systems are implemented without proper alignment with business objectives. Even if your CRM isn’t failing, it may not be serving the business to its fullest potential.

Realizing CRM success starts with reframing CRM utilization, begin by reappropriating the “M” to be marketing rather than management. This enables expanded thinking to include one-to-one, direct-response, and other marketing disciplines.

If your current CRM isn’t contributing to increased sales and deepened brand connection, consider reframing your CRM thinking and doing.

From Rational to Emotional

CRM concepts often fall short due to many marketers thinking only rationally—what data can I pull and how can I use it—rather than also including the emotional side. But our research shows that growing brand devotion requires consideration of a spectrum of consumer experiencesemotional, social, financial, and structural. It’s the emotional consumer experiences that are most often overlooked and unconsidered in CRM: experiences that make people feel recognized and involved, such as personalization, exclusive access and surprises. Are messages and offers meaningful, relevant and specific to me?

Lululemon is a brand known for connecting with its customers. In addition to a strong consumer membership program, its Sweat Collective is exclusively for fitness professionals. Pro members are asked to provide feedback on products and designs, and to attend special in-store experiences and community events like yoga classes. These opportunities reinforce community and connection and are in addition to the robust 25 percent discount members receive. Sweat Collective is a notable example of how a program with emotional connection at its center can increase engagement and loyalty.

From Isolated Tool to Holistic Engagement Method

According to Forrester, 68 percent of business and IT decision makers directly involved in CRM implementation in the past 12 months reported that they struggled to get a single view of the customer, 48 percent struggled with creating customer insights to drive decision making, and 29 percent struggled with gaining cooperation across the organization to support CRM improvement projects.

CRM and business success starts with aligning CRM strategy to marketing strategy, working to not get lost in the capabilities of CRM’s tools and techniques. Brands need to recognize CRM as an enterprise-wide effort to build positive, emotionally connected relationships to meet short- and long-term marketing goals.

Fortunately, capabilities can and should evolve over time. Like Rome, effective engagement marketing strategies weren’t built in a day. Your first milestone might be program recognition, where customers can see their member-only benefits. The next milestone—personalized program tiers—might show customers their tier status in email and app, with personalized benefits and offers. The third tier could build on the personalized program tier in an omnichannel experience, prioritizing their customer care issues and acknowledging their loyalty at each brand touchpoint, including in person at the register.

Shoe retailer DSW, for example, injected emotion into its already successful program a couple of years ago. Now members receive faster rewards, free shipping, and similar customer experiences on its website and app, plus three member tiers and corresponding rewards. In addition, members can donate shoes to people in need.

From Data Capture to Deepened Connection

In our own global research study, 81 percent of consumer respondents reported opting in to communications with a brand, and 73 percent said it was critically or somewhat important that brands know who they are and understand their preferences. This consumer expectation, coupled with the recent maturity in CRM-related tools and techniques, creates a world of engagement possibilities. But the reality isn’t keeping pace.

To open the world of possibilities enabled by modern CRM, engagement strategies must move beyond behaviors to consumer attitudes and beliefs at the individual level. Rooting engagement strategies in customer needs helps you connect CRM features and functionality to the full range of reasons consumers seek out your brand. Identify and leverage the various brand, content, and experience elements available. Then strategize on how to deploy those assets to influence the way your customers think, feel, and engage with your brand. That’s the path that leads your brand closer to genuine and durable brand devotion.

Starbucks’ loyalty program, for example, isn’t just a means to accumulate points; it’s a platform that seemingly understands and caters to customers’ food-and-beverage preferences. From greeting users by name to remembering their favorite drinks and treats and offering personalized recommendations, the platform recognizes and values members as individuals at every step. Starbucks Rewards transforms a simple coffee purchase into an identity-affirming ritual that leaves customers feeling seen and valued. It also elevates a brief exchange into a small moment of reward and luxury. Starbucks has transformed simple transactional relationships into daily opportunities to create emotional bonds between customers and the brand.

Whatever the status of your CRM, it might be time to reframe or rethink how you use it—from a tool for tactical deployment to a foundational engagement methodology. Your customers and your business objectives are counting on it.

Joe Rueckert is senior director of customer engagement for the Lacek Group, a Minneapolis-based data-driven loyalty, experience, and customer engagement agency that has been delivering personalization at scale for its world-class clients for 30 years. The Lacek Group is an Ogilvy Experience company.

CRM Covers
Free
for qualified subscribers
Subscribe Now Current Issue Past Issues