Harvey Mackay says “Customers are the reason we open our doors every day and keep the machines humming all night long. Customers determine what we eat, where we live, whether we stay in business.”
Mr. Mackay is right. Customers keep your business going which is why it is so important to know your customers. We are going to look at ways you can use your CRM to know your best customers so you can attract more customers like them. Before we dive into that, let’s look at what happens when you do not take the time to know your customers.
- Follow Up Fatigue – When you do not know your customer, you will end up spending more time following up with people who are not qualified leads.
- Higher Cost per Acquisition – The more time you spend trying to close a sale with an unqualified lead, your cost per acquisition rises which means your profit margin decreases.
- Customer Loyalty Lowers – Unqualified leads that turn into customers generally do not stick around. The result is low retention and loyalty which means you have to work harder.
As you can see, when you do not know your customers, it creates more work and eats into your revenue and growth. By using your CRM, you can analyze your best customers which, in turn, can help you attract more customers like them. We recommend that you create a dashboard in your CRM that shows the characteristics of your customers so you can learn about them.
When you are analyzing your customer data in your CRM, you should consider the following metrics:
How they buy
Before people bought online, they typically stepped into a store or picked up the phone. Now, they also purchase from apps, social media, websites, and text messaging. Analyzing how your best customers buy from you will help know how to reach and attract like-minded customers.
What they buy
Customers buy from you because you have the solution that they need. Most businesses have more than one product and/or service, so it is important to see which products and services they buy first. By analyzing data in your CRM, you can curate more effective content that focuses on what attracts your best customers.
When they buy
Customers buy at a time that is right for them (unless it is an emergency). If you are a B2C business, your customers may have a 9-5 job and buy before or after work. If they work remotely, they may buy throughout the day. However, if your customers are B2B, when they buy may be determined by industry routine and patterns. Knowing your customers means that you know the difference between B2C and B2B and when they buy. Your CRM can help you know your best customers’ buying behavior so you can reach out, advertise, and promote your business and the most optimal times to attract new quality customers.
Where they go to network
Almost all people network, especially those who work in B2B industries. Networking events are a great way to meet new people, establish business relationships, give and receive referrals, and find new customers. At the same time, not all network events are right for your business. Tracking where your best customers go to network will give insight into which networks you should attend or join because it is likely that you will meet others like your customers.
What they do personally
Customers have interests. It could be sporting events, charitable work, or touring wineries. Customers tend to gravitate toward salespeople and businesses that either share their interest or value their interests. As a business, you should be collecting information about your customer’s interests in your CRM. This will help with your communication and messaging especially if your best customers. By analyzing your clients’ interests, you can get involved and attract better leads.
Knowing your customers is key to attracting like-minded customers, reducing Follow Up Fatigue, and increasing your revenue. Your CRM is a valuable asset to help you understand and learn about your customers. If you are not using a CRM, contact us to schedule a free demo of X2CRM and learn X2 can help you know your customers better and sell more with less effort.