Over the past few years, the cost of new user acquisition has skyrocketed, from getting quality traffic or new leads and moving them down the sales funnel. According to a recent survey by Hubspot, 65% of marketers say generating traffic and leads is their top challenge.
It is becoming more cost effective and easier to gain repeat purchases from current users. Therefore, along with pursuing new customers or leads, companies are also focusing on marketing to existing customers and increasing their average order value via up-sell and cross-sell strategies. Cross-selling is offering related products at the time of purchase (think laptop bags being cross-sold with laptops), while up-selling is offering a similar but more costly product of the same category (promoting a Windows 10 laptop when a customer is interested in a Windows 8 laptop). Through intelligent and insightful use of data available in the CRM, a company can cross or upsell effectively to their existing user base.
Having all of the business data (sales, customers, etc) centrally available in the CRM allows a company to better target complementary products to the most qualified customers, based on their previous purchases (cross sell); as well as knowing who would best benefit from premium products in the same category (up-sell). For example, your CRM can provide information regarding which customers have bought a Windows 8 laptop from you. Based on data from the CRM on any customer feedback, repeat purchase cycle, and past transactions, you will be able to target these customers with a more expensive Windows 10 laptop in a timely manner. Similarly, if you are in the business of selling printers, your CRM can inform you who bought which printer and when. Then you can effectively target those customers with the ink cartridges that are associated with the particular printer (cross sell). Furthermore, the CRM can inform you of the average usage cycle of ink cartridges and enable you to anticipate the right time to target your customers with the corresponding inks.
As mentioned earlier, the key to business growth today is to offer your customers the most relevant, personalized experiences. By using the data available in your CRM, you can begin to effectively understand, segment, and target your existing customers through relevant, personalized experiences. And truly leverage the power of your CRM and use it to increase your company’s productivity and profitability.