CRM

Part
01
of five
Part
01

Preference Center Engagement Statistics

Preference center engagement statistics factor into successful CRM performance in a variety of ways. It helps with customer engagement and retention, increases open and click-through rates, increases customer satisfaction, and leads to brand loyalty amongst customers.

PREFERENCE CENTER ENGAGEMENT AND CRM

How do Preference Center Engagement Statistics factor into successful CRM performance?


Does introducing a preference center increases message open rates/click?


Does it impact email list un-subscription?

  • Preference centers greatly reduce email list un-subscription. The principal reasons people unsubscribe from an email list is because they receive too many emails, the emails look like spam, the content is not relevant to them, they never wanted to subscribe, or content does not match their preference.
  • Preference centers solve all of these problems by allowing subscribers to choose the content they want and how often they want it. A case study done by New York Media showed that the organization’s unsubscribe rate decreased by 76% in just a year after they utilized a preference center. It also got fewer customer complaints.
  • Another study found that if companies do not provide customers with a personalized experience, unsubscribe rates can increase by 52%.
  • This can be substantiated by the fact that 74% of subscribers get annoyed when content is irrelevant to their interest. Unsubscribe rates will always lessen when emails are personalized.

Does it impact channel engagement (email engagement, social media engagement, and/or direct mail engagement)?

  • The University of Birmingham recently used a preference center to collect customer data and develop more targeted campaigns. The use of the preference center resulted in a click-through rate that was 68% higher and greater customer engagement on all of their platforms.
  • Preference centers are the key to greater client engagement as they enable clients to have control of how they interact with the company. The organization builds trust with its clientele, increasing engagement and retention.
  • Approximately 77% of customers also state that they are more likely to engage with a company that allows them to decide how the company interacts with them.
  • Emails containing personalized subject lines have a 26% higher chance of being opened, so the use of a preference center will increase customer engagement. Preference centers facilitate segmented campaigns, which so successful that marketers state that after personalizing their campaigns their email profits rose by 760%.
  • With preference centers, companies can decrease opt-outs by 60-90% and advance customer retention and engagement by about 50%. This is all possible by listening to what customers want.

Digital device engagement

Research Strategy:

To determine how preference center engagement statistics factor into successful CRM performance, we scanned a variety of business, marketing, and news platforms. Specific information covering an increase in customer engagement on the given channels was not easily found. Alternate research methods had to be applied to find the information, which was still limited. In some cases, personal blogs of marketers were used.
Part
02
of five
Part
02

Triggered Communication Statistics

Triggered communications/emails statistics factor into successful CRM performance as triggered emails, on average, have an open rate of 44.05%, an unsubscribed rate of 0.51%, a click-through-rate (CTR) of 10.39%, and a click-to open rate of 23.59%.

TRIGERRED EMAIL STATISTICS FOR SUCCESSFUL CRM PERFORMANCE

OVERVIEW
  • Trigger-based email marketing is customer interaction, that is targeted, on an action by a client or a noticeable modification in client behavior. Triggered emails are a more personalized and meaningful form of communication with customers than push marketing, and they are based on specific client prompts obtained through a data system.
  • Around 50% of marketers believe triggered emails that are based on behavior and data are more practical than alternative programs and strategies.
  • Regalix Research highlights the various forms of triggered communications/emails, which includes 1) transactional triggers in welcome emails, 2) recurring trigger emails, 3) threshold trigger mails, 4) variable triggers emails, 5) behavioral emails, and 10) re-engagement mail.
  • Triggered emails support in building and nurturing customer relationship (CRM) by making them feel special through welcome emails. About 75% of businesses distribute a welcome email "on the same day" as they are found to be the most prominent type of triggered emails. Also, it increases shoppers chances of buying a product online by at least 66%, and businesses can save about 80% of their direct email budget.
BENEFITS OF TRIGGERED EMAILS FOR COMMUNICATION
  • Triggered emails have an enhanced response rate, with a CRT that is 152% higher when compared to traditional ones.
  • Triggered emails progress personalization as they are very personalized and customized expressly to match particular events pertinent to the clients.
  • When it comes to lead nurturing, triggered emails promptly direct the clients to the appropriate content.
  • For marketers, triggered marketing enables them to smoothly maintain marketing business concerns by distributing appropriate communication instead of dispatching email blasts, which helps save resources and time in the future.

STATISTICS

  • According to the Get Response email marketing bench marketing report, triggered emails can greatly influence both the click-through and open rate of an email marketing operation, which is vital to its prosperity.
  • The report highlights the results of the average metrics marketers witness employing various email marketing methods such as triggered emails, along with other forms of automated emails such as Autoresponder. It was found that the triggered emails provide superior results.
EMAIL OPEN RATE
  • On average, the triggered emails have an open rate of 44.05%, while Autoresponder has a rate of 29.77%. Meanwhile, the unsubscribed rate for triggered email is 0.51% and Autoresponder's rate is 0.32%.
CLICK-THROUGH RATE
  • The CTR for triggered emails is 10.39%, the click-to open rate is 23.59%, and the spam rate is 0.05%, leading to fewer chances of clients unsubscribing from the email list. The CTR for Autoresponder is 5.92%, the click-to-open rate is 19.90%, and the spam rate is 0.03%.

REVENUE, ENGAGEMENT METRICS, AND SPEED OF COMMUNICATION

  • According to research from Bouncex, the performance of triggered emails as compared to alternative forms of email marketing, such as batch-and-blast, is more effective in terms of various other related KPI's like revenue, engagement, conversion rate, and communication.
REVENUE
  • Batch-and-blast emails generate revenues of about $0.04 for every send, while triggered emails produce $0.95, which 24 times higher.
ENGAGEMENT METRICS
  • When compared to batch-and-blast emails, triggered emails have conversion rates, click rates, and open rates that are 4.1 times, 2.1 times, and 2.2 times higher. Overall, the engagement metrics for triggered emails are, in comparison to batch-and-blast emails, more than doubled.
SPEED OF COMMUNICATION
  • Regarding communication, triggered emails typically have longevity and are much more pertinent to the person reading them, which leads to quicker engagement. Between 18-23% of all engagement occurs after a period of 24 hours from when the email was delivered.
Part
03
of five
Part
03

Loyalty Communication, Program Benefits and Customer Behavior

Loyalty communication that focuses on program benefits or customer behaviors can result from a successful CRM if the customer segmentation is built into the design, if the organizational culture supports customer centered processes and attitudes, if the technology interfaces with social media, and if the appropriate psychological and sociological themes are built into the communication.

CRM planning and implementation

  • The first theme in using a CRM system is to define the objectives. Most research has shown that CRM 2.0 is not just an information system but a "philosophy and a business strategy supported by a system and a technology, designed to engage the customer in a collaborative interaction that provides mutually beneficial value." In other words, there must be an integration between the technology and the organizational goals.
  • Customers should not be treated the same. Before the CRM is implemented, the data which will be used to target communication must be defined and built into the system.
  • The latest research shows that customer segmentation is based on any of the following factors that are relevant to the organization: demographic features, satisfaction, desired behaviors, profitability, value, involvement level and loyalty level. Most organizations are using cluster analysis and data mining techniques to drive business decisions.
  • As an example of determining a customer's brand loyalty, a recent research study listed six customer activities that a CRM system could track to determine engagement: proactively using loyalty cards, redeeming earned points, changing purchasing behavior according to loyalty focused incentives, being receptive to information, sharing the new information and actively searching for information.

Organizational Support

Technology and Tools

  • Customers and companies now have a growing number of channels they can use to communicate with each other.
  • A part of tracking customer behavior now becomes monitoring and recording customer interactions and comments on social media, as well as tracking which communications the organization sent to which segments of their customer base.
  • Using a CRM system now also means finding a way of synthesizing a customer's experience into the customer's profile.
  • Why go to all this trouble? Because research has shown that using social media to interact with customers increases their commitment to the organization and the brand. Every social media interaction becomes loyalty communication.

Customer perspectives and characteristics

  • Understanding the customer perspectives and behaviors should be the value provided by a CRM. The factors that affect these behaviors need to be recognized by the organization to craft loyalty communication that will achieve its goal.
  • Social bonds are created with increased consumption. It's not, however, just about consumption; age and culture also affect customer loyalty behaviors.
  • Customer perceptions are grounded in Identity Theory. An organization's commitment to an actual relationship is affected by the service quality and program benefits they experience. The benefits are not always directly attributable to the customer. For example, an organization's corporate social responsibility actions often drive customer loyalty, so communicating that activity directly to the customer becomes even more critical.
  • Another social theory affecting customer behavior is the Theory of Justice. Research has shown that the perception of fairness is a critical element in building brand loyalty among customers. The research results showed that "communication-based and value-based fairness significantly influence brand attachment and loyalty intention." Fairness can develop brand attachment and increase customer spending.
  • Trust is another factor that drives loyalty. Research has shown that commitment on the part of the organization, trust on the part of the customer and the resulting word-of-mouth are the three key requirements in building social diffusion of the organization's message to its customer base and beyond.
  • Both Identity Theory and the Theory of Justice concepts should, therefore, be included in loyalty communications.

Outcome and impact

  • Everything is in place; your CRM system and process is chugging along gathering information and generating targeted communications. What should you be able to do?
  • You should be able to track individual customers' transactions, analyze their spending habits, understand their preferences and use that information to communicate with them. For example, if you know they use a product or service you sell on the first of every month, sending a targeted communication about sales of their preferences on the 28th of the month before is a good use of resources.
  • Some studies have shown that grouping together customer satisfaction, commitment and trust can form a metric called relationship quality. This metric has been a relatively consistent measurement of customer loyalty.
  • All of this information and these actions should, in time increase profitability and perhaps even market share.

Pitfalls

  • But wait, it's not all perfect. There are pitfalls that a company must consider.
  • As efficient as it is, CRM is not always the best way to achieve objectives. Sometimes "a cigar is just a cigar", and sometimes the reasons a customer is continuing to purchase a product or service has nothing to do with any of the data that is being collected. There is no emotional tie or brand loyalty, just convenience.
  • It is also easy to put too much attention on non-value added positive information. The presence of benefits does not inherently generate loyalty, nor does a low level of loyalty mean disloyalty.
  • Reading the data is good. Reading too much into the data can send a company down the wrong path.

Conclusion

  • Loyalty communications that focus on just program benefits or customer behaviors, while useful, will not provide the full value from a CRM.
  • There are data design, process and corporate culture factors that will define the value to the company, as well as social and psychological theories that create value for the customer.
  • These must be included for a successful CRM performance.
Part
04
of five
Part
04

Segmentation & CRM

Segmentation helps to increase revenues, customer engagement and retention, and increases the company’s overall performance. The details of our findings are outlined below.

SEGMENTATION STATISTICS AND CRM PERFORMANCE

  • Segmentation improves customer relationship management because it helps the company to personalize its messages based on the needs and wants of its clients. Each client has a unique behavior, preference, and story: segmentation helps the company to speak to the clients using their unique behaviors. This leads to clients feeling appreciated by the company.
  • Clients will more likely develop an intimate relationship with the brand and choose it over other brands.
  • A survey that was done by Infosys showed that of 1000 consumers interviewed, 86% said that the personalization of messages plays a major role in their purchasing decision.
  • A segmented list means that companies have the ability to specify its messages. This leads to a greater conversion rate and also reduces wasted time and effort.
  • Segmentation can be broken down into two types: lead segmentation and client segmentation. Client segmentation assists the company with engaging their current customers. It improves CRM because it keeps the clients interested and ensures that they remain loyal to the brand.
  • Lead segmentation allows the companies to engage with prospective clients. This improves CRM by assisting the company with building trust, allows the company to tailor its sale messages to suit the clients’ needs, and keeps them engaged. Segmentation is necessary because it helps to create a more personalized experience for clients, and this is what clients want.
  • A survey done by Marketo with over 2200 respondents showed that customers were getting tired of the same old marketing campaigns where companies sent the same generic messages constantly.
  • Over 63% of respondents complained about this matter and said they were highly annoyed at brands who continue to rely on this marketing strategy. Approximately 78% of these respondents stated that they are likely to engage with brands who personalize their marketing strategies to suit their needs and previous interactions with the brand.
  • Segmentation contributes to a successful CRM performance by helping to keep all contacts better organized. If a company has a disorganized list, their marketing campaigns will be disoriented and will be unsuccessful. Breaking down contacts into groups will lead to better organization and better customer service.
  • Getting in touch with clients will be much easier. Companies will be able to send specific campaigns to the best target group.
  • It boosts sales: the company can maintain and update customer profiles for current and future marketing campaigns.
  • Using segmentation, the company can group all past customers in one file, and send them emails based on their previous interactions, increasing retention. This can also be done for prospective customers. This will strengthen the company’s sales pitch and promotional campaigns.
  • Promotional campaigns are much easier. One can send out new product information to customers based on their previous preferences. This will increase their chances of making a purchase.

MESSAGE OPEN RATE AND SEGMENTATION

SEGMENTED CAMPAIGNS VS. CLUSTER CAMPAIGNS

SEGMENTATION AND REVENUE


Part
05
of five
Part
05

Dynamic Content

Successful CRM performance depends on dynamic content that uses personalization, customer segmentation and automation to create a seamless customer journey across all channels. When combined with marketing efforts successful CRM performance increases click through rates, conversion rates, open rates, and purchase rates with minimal effort. Information regarding dynamic content and CRM and comparisons to static content are described below.

EMAIL

  • Personalizing email messages can increase click-through rates by an average of 14%, and deliver 6 times higher transaction rates. Seventy-four percent of marketers cite personalization increases customer engagement. Seventy-six percent of marketers give that all emails will be completely personalized over the next five years.
  • Demographic information is one way of creating dynamic content and personalization. Sephora is given as one example of how messages were targeted to consumers based off location as they offered trips to Paris, while being able to run the same campaign for Paris subscribers offering a different trip. Dynamic content based on location increased click-through rates by 29%.
  • Customer segmentation and personalization are necessary for effective marketing campaigns. Ragnar uses a custom program to segment individual runners to target them with the most personally engaging information including content about nutrition, training tips, inspirational stories and more. The volume of their emails decreased, however engagement rates continue to rise. The change to dynamic content resulted in a 41% increase in revenue per email campaign, an 82% increase in open rates, and an 84% click to open increase.
  • Email campaigns based on customer segmentation provide about 10% to 15% better open rates, and use of CPD can increase this number to 20% to 25%. General emails blankly sent to entire databases decrease open rates by 5% to 10%.
  • CRMs use automation for welcome emails and insert more relevant content based on how the user subscribes, re-engagement emails to pull subscribers back to your emails or store. Re-engagement emails pull subscribers back by customizing the content to be similar to what they last interacted with.

ONLINE

STRATEGY

We examined existing case studies, articles, and blogs from expert sources regarding dynamic content and CRM performance. We also searched for information regarding CRM and dynamic content success metrics to identify specific statistics. Finally, we searched for existing information comparing dynamic content versus static content and CRM performance for statistics regarding the success of dynamic content over static content, but this search did not yield any additional results.
Sources
Sources

From Part 01