CUSTOMER RELATIONSHIP

As meaningful as the word customer relationship sounds, in a sense,it is still an

incomplete word because there's an hidden + at the beginning of the word just like the
hidden + sign in positive numbers or figures.

The hidden + sign or prefix for the word customer relationship is "BUSINESS". Without
a business, there cannot be customer relationship and to understand customer
relationship, it is important that these three concepts; business, customer and
relationship are explored.

A BUSINESS is a commercial activity or an organization that engages in commercial

activity which is buying and selling and provide product and/or services.

A CUSTOMER is an individual or business who buys goods and services from other
businesses.

A RELATIONSHIP is any form of association or connection with one or more people

and in this case it is a connection between a business and a customer.

It is also safe to say that business-customer relationship cannot occur if there is no

CONTACT between the business and the customer. Therefore contact is what fosters
relationship between these two entities.

Contact may as well occur and may be a one time thing; not blooming into a relationship
and this may be as a result of various reasons such as poor customer service,
unfavorable buying experience, substandard product or services, etc.

WHAT THEN IS CUSTOMER RELATIONSHIP?

Customer relationship is simply a connection or affinity between a business and her
customers. It refers to how emotionally connected the customer and the business are to
each other.

One example of a way to build relationship with client as entrepreneurs is our trivia
game courtesy of Cloudde, follow up after purchase of product or services.

A lot of people mistake customer relationship to be the same as customer service.

These 2 concepts are different.
Customer service refers to the assistance and advice provided by a business to her
customers before and after purchase. It includes delivery service, advice on which
product best suite the client, how to get the best result from using the product, etc

WHY IS IT IMPORTANT TO UNDERSTAND CUSTOMER RELATIONSHIP

It is important to understand what customer relationship is before diving into customer
relationship management because, you cannot manage effectively and efficiently what
you don't know and what you are not aware of, and so understanding the foundation of
customers relationship management will help keep the clients satisfaction at the center
of whatsoever steps will be taken to ensure a smooth, lasting and favourable
business-customer relationship.

TYPES OF CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management (CRM) refers to strategies, practices, and
technologies that businesses use to manage and improve their interactions with
customers. There are several types of CRM that organizations can implement to
enhance customer relationships. Here are four common types:
1. Operational CRM: This type focuses on streamlining and automating various
customer-facing processes, such as sales, marketing, and customer support. It typically
involves managing customer data, tracking interactions, and ensuring efficient
communication across different departments.
For example Imagine a small local bakery that wants to improve its customer
interactions and sales processes. They decide to implement an operational CRM
system to achieve this.
With the operational CRM system in place, the bakery can Store Customer Information,
Track Customer Orders, Automate Order Confirmation, Schedule Delivery or Pickup,
Maintain Customer Preferences, Handle Customer Inquiries and ensure that customers
are satisfied. This leads to improved customer satisfaction, increased repeat business,
and a more organized and customer-centric approach to running the bakery.

2. Analytical CRM: Analytical CRM involves analyzing customer data and extracting
meaningful insights to enhance decision-making and improve customer experiences. It
helps businesses understand customer behavior, preferences, and trends, enabling
them to tailor their offerings and marketing strategies accordingly.
For instance a large e-commerce company that sells a wide range of products online.
They want to gain insights into their customer behavior and preferences to optimize
their marketing strategies and improve customer satisfaction. To achieve this, they
implement an Analytical CRM system.
By implementing an Analytical CRM system, the e-commerce company can gain
valuable insights into customer behavior, personalize marketing efforts, optimize
product offerings, and enhance customer satisfaction. This leads to improved
decision-making, targeted marketing campaigns, and ultimately, increased sales and
customer loyalty.

3. Collaborative CRM: Collaborative CRM aims to enhance collaboration and

communication between different departments within an organization to serve
customers better. It involves sharing customer information across teams, enabling
seamless coordination, and ensuring a consistent customer experience at every
touchpoint.
Like when a software development company that provides technical support services to
its customers. They implement a Collaborative CRM system to enhance communication
and collaboration between their support team and customers.
By implementing a Collaborative CRM system, the software development company can
foster collaboration between customers and their support team. This leads to improved
customer satisfaction, faster issue resolution, a sense of community, and a more
transparent and responsive customer support experience

4. Strategic CRM: Strategic CRM focuses on long-term planning and developing

strategies to build sustainable and profitable customer relationships. It involves aligning
business goals with customer needs, identifying high-value customers, and
implementing initiatives to maximize customer satisfaction and loyalty. It's important to
note that these types of CRM are not mutually exclusive, and many organizations
implement a combination of these approaches to effectively manage their customer
relationships.
Imagine a high-end fashion retailer that aims to build long-term customer loyalty and
enhance personalized experiences. They implement a Strategic CRM system to
develop a comprehensive understanding of individual customers and create targeted
offerings.
With the Strategic CRM system in place, the fashion retailer can develop stronger
relationships with customers, create personalized experiences, and drive customer
loyalty. This leads to increased customer satisfaction, repeat purchases, positive
word-of-mouth, and ultimately, sustained growth and success in the highly competitive
fashion industry.

GOALS OF CUSTOMER RELATIONSHIP MANAGEMENT

1. Enhancing Customer Satisfaction:

At the heart of CRM lies the goal of delighting customers by providing exceptional
experiences. By centralizing customer information, businesses gain a comprehensive
understanding of individual preferences, purchase history, and support interactions. This
knowledge allows them to personalize interactions, anticipate needs, and address
concerns promptly, leading to increased customer satisfaction and loyalty.

2. Strengthening Customer Engagement:

CRM aims to foster meaningful engagement with customers throughout their journey. By
leveraging data-driven insights, businesses can tailor their marketing efforts, product
recommendations, and communication channels to resonate with each customer. This
personalized approach nurtures stronger connections, encourages brand advocacy, and
empowers customers to become active participants in the brand's success.

3. Optimizing Sales and Marketing Strategies:

CRM empowers businesses to streamline their sales and marketing efforts. By
analyzing customer data, companies can identify trends, preferences, and buying
behaviors, enabling targeted marketing campaigns and personalized sales pitches.
Moreover, CRM systems enable seamless collaboration between sales and marketing
teams, ensuring a unified approach to customer acquisition and retention.

4. Improving Customer Retention:

Acquiring new customers is essential, but retaining existing ones is equally crucial.
CRM assists in building customer loyalty by identifying at-risk customers, managing
loyalty programs, and implementing proactive retention strategies. By staying connected
with customers, addressing their concerns, and delivering consistent value, businesses
can reduce churn rates, strengthen customer relationships, and create brand
ambassadors.

5. Increasing Operational Efficiency:

Efficiency is a vital goal of CRM, as it simplifies various business processes. By
automating routine tasks, such as data entry, lead management, and customer support,
companies can free up valuable time and resources for more strategic activities. CRM
systems also provide real-time analytics and reporting, allowing businesses to make
data-driven decisions and optimize their operations effectively.

6. Enhancing Collaboration and Communication:

CRM breaks down silos within organizations and fosters collaboration across different
departments. It enables teams to access a centralized database, share customer
insights, and coordinate efforts seamlessly. Improved communication and collaboration
lead to enhanced customer experiences, as teams work together to address customer
needs promptly and efficiently.

FEATURES OF CRM

1. Customer Data management

2. Sales and lead management

3. Marketing Automation

4. Customer service & support

5. Integration with other systems

1. Customer Data Management:

Customer Data Management refers to the process of collecting, organizing, and

maintaining customer information within a CRM system
It enables businesses to have a centralized and up-to-date view of their customers,
facilitating personalized interactions, targeted marketing, and efficient customer service.

2. Sales and Lead Management:

Sales and Lead Management feature in CRM systems helps businesses track and
manage their sales activities and leads effectively.

3. Marketing Automation:

Marketing Automation within CRM systems streamlines and automates marketing

activities. It includes features such as campaign management, email marketing, lead
nurturing, and segmentation.
With marketing automation, businesses can create targeted campaigns, automate
repetitive marketing tasks, track campaign performance, and nurture leads based on
their behavior and engagement. This feature helps optimize marketing efforts, improve
lead conversion, and enhance customer engagement.

4. Customer Service & Support:

CRM systems include customer service and support features to assist businesses in
providing excellent customer service
By leveraging customer service and support features, businesses can enhance
customer satisfaction and build long-term customer relationships.

5. Integration with Other Systems:

CRM systems often have the capability to integrate with other business applications and
systems. This integration allows for seamless data exchange and coordination between
the CRM system and other tools such as email clients, marketing automation platforms,
accounting software, or e-commerce platforms.

All of These CRM features collectively contribute to effective customer relationship

management, enabling businesses to gather, analyze, and leverage customer data,
streamline sales and marketing processes, provide exceptional customer service, and
integrate with other systems for seamless operations.

BENEFITS OF GOOD CUSTOMER RELATIONSHIP

1. Customer Loyalty: When customers feel valued and appreciated, they are more
likely to continue doing business with you and become repeat customers.
This leads to increased sales and revenue over time.

2. Positive Word-of-Mouth: Satisfied customers are more likely to recommend your

business to others.
By providing excellent customer service and maintaining good relationships, your
business can benefit from positive word-of-mouth marketing.
New customers are attracted to your business and your customer base expands
organically.

3. Increased Customer Lifetime Value: Building strong relationships with your

customers can extend their lifetime value to the business.
Loyal customers tend to make more frequent purchases, spend more money, and are
open to trying your new products or services.
This can significantly impact the profitability and sustainability of your business
4. Competitive Advantage: When you maintain good relationships with customers,
your business automatically becomes a powerful differentiator in your competitive
market.
While products and prices can be replicated, a reputation for exceptional customer
service and strong relationships is harder to imitate.
It helps your business to stand out and gain a competitive edge over your rivals.

5. Feedback and Improvement: Establishing a rapport with your customers

encourages open communication.
When customers feel comfortable with your business, they are more likely to provide
feedback, suggestions, and constructive criticism.
Surely, this is invaluable for improving products, services, and overall business
operations.

DISADVANTAGES OF POOR CUSTOMER SERVICES

1. Negative Word-of-Mouth: Poor customer service experiences can spread quickly

through word-of-mouth, online reviews, and social media.
Dissatisfied customers are more likely to share their negative experiences, which can
damage your reputation and hinder potential customers from doing business with you.

2. Customer Churn: Poor customer service can lead to a high customer churn rate.
This is when your customers stop using your product or patronize your business.
When they have negative experiences or feel neglected, they are likely to switch to your
competitors who offer better service.
Losing customers not only results in immediate revenue loss but also reduces the
potential for repeat business and customer loyalty.

3. Declining Sales and Revenue: Dissatisfied customers are less likely to make repeat
purchases or refer others to the business.
This can have a significant impact on the bottom line and overall financial health of your
business.

4. Increased Customer Acquisition Costs: Acquiring new customers is generally

more expensive than retaining existing ones.
When your customer service is poor, then your business is constantly in a cycle of
attracting new customers to replace those who leave.
This can lead to increased marketing and sales costs, affecting the profitability of your
business.

5. Damaged Brand Image: Poor customer service can tarnish a company's brand
image and perception in the market.
Negative reviews, complaints, and publicized incidents of poor service can erode
consumer trust and make it challenging to attract new customers.
A damaged brand image takes time and effort to repair, if it can be repaired at all.

6. Legal Consequences:In extreme cases, poor customer service may lead to legal
consequences.
When your Customers suffer financial losses or harm due to your negligent or
irresponsible behavior, they may seek legal action against the business.
Legal battles can be costly and result in further damage to the company's reputation.

In conclusion, investing in excellent customer service and cultivating strong customer

relationships is essential for the long-term success and growth of your business.

MYTHS OF CUSTOMER RELATIONSHIP MANAGEMENT

CUSTOMERS ARE ALWAYS RIGHT: The statement “Customers are always right” is a
common business belief that suggests that customers' needs and desires should be the
top priority in any business, but the phase is no meant to be taken literally in all
circumstances.
While customers satisfaction and providing good customer service are essential for
business success, there are instances where customers may not be right.
Examples;
Unrealistic/Unreasonable demands
Violation of policies
Abusive behavior
Incorrect product usage
Asking for refund for no valid reason

Businesses should strive to provide excellent customer service and address valid
concerns while also recognising that customers like anyone else, can make mistakes or
behave unreasonably at times. The focus should be on finding a fair resolution and
mutually beneficial for both the customer and business

CRM IS ONLY FOR SALES AND CUSTOMER SERVICE DEPARTMENTS.: Crm is not
solely the responsibility of the sale or customer service department. While these
departments play a significant role in directly interacting with customers, providing
excellent customer service should be a company-wide effort
All departments impact the customer experience. Every touch point a customer has with
your business can shape their perception of your brand.
So to provide exceptional customer service and obtain customer satisfaction, different
departments must work together. The sales team may gather important customer
insights that need to be shared with the product development or marketing team.
Customer service may need assistance from other departments to resolve complex
issues.

AUTOMATION AND BOTS CAN REPLACE HUMAN INTERACTION: Automation and

bots can play a valuable role in certain aspects of customer interaction but they cannot
completely replace the need for human interaction.
Here are some reasons why:
Lacks emotional connection
Solving complex problems or handling delicate issues
Building trust and loyalty
Personalized customer experience
Negative Reputation and Brand Perception
Missed sales opportunities

To avoid these negative effects, businesses should strike a balance between

automation and human interaction. Using bots for routine inquiries and providing access
to human agents for more complex or emotionally sensitive situations can help deliver
personalized, empathetic, and satisfactory customer experiences.

CRM IS ONLY ABOUT COLLECTING DATA: While data collection is an important

aspect of CRM, the true value lies in how organizations leverage that data to enhance
customer relationships.
CRM enables organizations to utilize data to improve marketing campaigns, personalize
interactions, enhance customer service, and optimize business processes.
It's the effective use of data and insights that drive the success of CRM, enabling
businesses to deliver personalized experiences and targeted marketing efforts.
CRM IS NOT FOR BIG COMPANIES OR BUSINESSES ONLY: CRM is about
understanding and managing customer relationships effectively. Regardless of the
company's size, building strong customer relationships is important for success. Small
businesses can use CRM strategies and tools to nurture customer loyalty, enhance
customer experiences, and drive customer satisfaction.

5 STEPS IN ACTUALIZING CRM

STEP 1: AWARENESS
The first step to actualizing CRM is to introduce customers to your business, and to do
this, the entrepreneur must have an understanding of his/her business' target audience.

The entrepreneur must have conducted a research to identify the business audience’s
target demographics, interests, preferred channels of communication, what messaging
they respond most to, and what they care about. This will help the marketing campaign
or ads to be more efficient because understanding of this will help the business prepare
the right sales copy.

After which the target audience has been known, marketing campaigns that speak to
those target audience should be used to bring in these new leads or potential
customers.

STEP 2: NURTURING
It is nut just enough to get new leads or potential customers, these new leads must be
nurtured. Leads are like seeds, if not taken care of well, will die; not end up buying. How
then can leads be nurtured? Leads are nurtured through the information the business or
entrepreneur put out there via WhatsApp status or social media in general.

As an entrepreneur, is your status just full all cruise 24/7?, Do your clients see reasons
to patronize you and not other brands when they view your social media handles? What
kind of brand image are you putting out there? These are important questions every
entrepreneur should answer.

STEP 3: SALES OPPORTUNITY

Lead nurturing births sales opportunity. At this point, you’ve successfully engaged with
your leads, and they’re interested. Now it’s time to turn those leads into customers.

To do so, entrepreneurs must first be skilled at identifying how interested leads are and,
specifically, whether they’re interested enough to make a purchase.
If leads do seem likely to make a purchase, entrepreneurs must then be able to nurture
them further and build their trust enough to convert.

STEP 4: SALES CLOSING

Now that the interest customers have been recognized, the next step is to close sales.
At this point, entrepreneurs should be ready and able to handle any objections that the
potential customers mught have and also provide superior customer service during and
after sales to ensure that the customer have a favourable buying experience.

STEP 5: FOLLOW UP

You’ve successfully converted your lead into a customer. Great! But the CRM process
doesn’t end when a customer converts. Follow up after purchase has to be done. This
helps to build a relationship with clients and show that the business really cares about
them. Follow up + good customer service and quality products and services help in
retaining customers and building customer loyalty.

In order to grow as a business, you need to retain customers. How do you keep that
customer coming back? Excellent service from support.

According to Zendesk’s 2020 Customer Experience Trends Report, customer service is

the biggest factor that determines a consumer’s loyalty to a brand. Conversely, poor
customer service can cost you customers and negatively impact your reputation.
Forty-nine percent of customers say being able to resolve their issue quickly is the most
important aspect of a good customer service experience. With CRM tools, support
agents can easily access the historical customer information they need to resolve a
ticket quickly.

Types of Customers
Customers can be classified into various types based on their behavior, preferences, and buying
habits.
Here are some common types of customers:
1) Loyal Customers: These are customers who repeatedly purchase from a specific brand
or business. They have developed a strong trust and affinity towards the brand and often
become advocates, recommending the brand to others.

2) Price-Conscious Customers: These customers prioritize finding the best deals and are
highly sensitive to price. They may actively search for discounts, compare prices across
different brands, and may be less loyal if they find a better price elsewhere.

3) Impulsive Buyers: Impulsive buyers make quick purchasing decisions without much
deliberation. They are often influenced by emotions, trends, or instant gratification.
Effective marketing and persuasive messaging can attract impulsive buyers.

4) Window Shoppers: These customers visit stores or browse online without a specific
intention to purchase. They may be seeking inspiration, exploring options, or simply
enjoying the shopping experience. While they may not buy immediately, providing a
positive experience can lead to future sales.

5) Demanding Customers: These customers have high expectations and may be

demanding in terms of product quality, service, or customization options. They may
require extra attention and personalized solutions to meet their specific needs.

6) New Customers: These customers are first-time buyers who may be unfamiliar with the
brand or product. They require information, guidance, and reassurance to make a
confident purchase decision. Providing a welcoming and informative experience can
help convert new customers into repeat buyers.

7) Tech-Savvy Customers: These customers are comfortable with technology and prefer
digital channels for research, purchasing, and customer service. They may appreciate
self-service options, online reviews, and seamless digital experiences.

8) Relationship-Oriented Customers: These customers value personal connections and

long-term relationships with businesses. They seek trust, reliability, and a sense of
familiarity. Building strong relationships through personalized interactions and excellent
service is crucial to retain such customers.

9) Niche Customers: Niche customers have specific interests, preferences, or needs. They
may be passionate about certain hobbies, specialized industries, or unique products.
Understanding their niche requirements and offering tailored solutions can attract and
retain these customers.

10) Difficult Customers: These customers may be dissatisfied, demanding, or

confrontational. They may have had a negative experience in the past or have unrealistic
expectations. Handling difficult customers requires patience, active listening, and
problem-solving skills to address their concerns effectively.
How to Handle Customers
To provide a good buying experience for different customers, it's important to understand and
cater to their unique needs and preferences.

1) Active Listening: Listen attentively to your customers and show genuine interest in their
concerns. Pay attention to their verbal and non-verbal cues to understand their needs
and expectations.

2) Adapt Communication Styles: Some customers may prefer a direct and efficient
approach, while others may appreciate a more friendly and personalized interaction.
Adapt your communication style to match their preferences and create a comfortable
environment.

3) Empathy and Patience: Show empathy towards customers by understanding their

frustrations and concerns. Be patient and avoid rushing them through the buying
process, especially if they require more time to make a decision or have specific
questions.

4) Product Knowledge: Be knowledgeable about your products or services. This will allow
you to provide accurate information and recommendations, address any queries, and
make appropriate suggestions based on customers' requirements.

5) Personalization: Treat each customer as an individual and tailor your approach

accordingly. Use their names, remember previous interactions, and offer personalized
recommendations or discounts based on their preferences or purchase history, if
applicable.

6) Problem Resolution: Be proactive in identifying and resolving any issues that arise
during the buying process. If a customer faces a problem, take ownership, and work
towards finding a satisfactory solution promptly.

7) Clear and Transparent Communication: Provide clear and transparent information about
pricing, policies, and any potential limitations or risks associated with the purchase.
Avoid misleading or deceptive practices that may erode trust.

8) Efficient Service: Strive to provide efficient service by minimizing waiting times,

streamlining processes, and ensuring a smooth buying journey. This includes prompt
responses to inquiries, efficient checkout processes, and timely delivery or fulfillment of
orders.
 9) Feedback and Continuous Improvement: Encourage customers to provide feedback on
their experience. Actively seek their suggestions for improvement and take their
feedback seriously. Implement necessary changes to enhance the overall buying
experience.

10) Positive Attitude: Maintain a positive and friendly attitude throughout the customer
interaction. A positive demeanor can help create a pleasant buying atmosphere and
leave a lasting impression.

HOW CRM CAN INCREASE CUSTOMER RETENTION AND LOYALTY TO YOUR

BRAND
1. Personalized Engagement: CRM allows me to gather and analyze customer data,
including purchase history, preferences, and behaviors. By understanding individual
customer needs and preferences, I can deliver personalized recommendations, offers,
and communications. This tailored approach makes customers feel valued and
understood, increasing their likelihood of remaining loyal to the brand.

2. Proactive Customer Support: CRM enables me to provide proactive customer

support by tracking customer interactions, inquiries, and issues. By promptly addressing
concerns and resolving problems, I can ensure a positive customer experience.
Proactive support shows that I value my customers' satisfaction, increasing the chances
of retaining their loyalty.

3. Loyalty Programs and Incentives: CRM allows me to implement loyalty programs

and reward systems. By tracking customer purchases and interactions, I can offer
exclusive benefits, discounts, or rewards to incentivize repeat purchases. These loyalty
programs create a sense of value and appreciation, encouraging customers to continue
shopping with the brand.

4. Targeted Marketing Campaigns: With CRM, I can segment my customer base

based on various criteria, such as demographics, preferences, or purchase history. This
segmentation enables me to create targeted marketing campaigns that resonate with
specific customer segments. By delivering relevant and personalized messages, I can
engage customers and keep them coming back for more.

5. Personalized Product Recommendations: CRM data can help me generate

personalized product recommendations based on customers' past purchases or
browsing behavior. By suggesting items that align with their preferences, I can enhance
the shopping experience and increase the likelihood of repeat purchases. Personalized
recommendations create a sense of convenience and cater to customers' individual
tastes.

6. Ongoing Communication: CRM allows me to maintain regular communication with

customers through email marketing, newsletters, or social media channels. By providing
valuable content, updates, and exclusive offers, I can keep customers engaged and
interested in the brand. Ongoing communication helps to maintain a strong brand
presence and keeps customers connected.

7. Post-Purchase Follow-up: CRM enables me to automate post-purchase follow-ups,

such as sending thank-you messages or requesting product reviews. By showing
appreciation and seeking feedback, I can demonstrate a commitment to customer
satisfaction. Positive post-purchase interactions build trust and loyalty, encouraging
customers to continue their relationship with the brand.

8. Customer Feedback and Surveys: CRM allows me to collect customer feedback

and conduct surveys to understand their experiences and expectations. By actively
listening to customer opinions and making improvements based on their feedback, I can
enhance customer satisfaction and loyalty. Customer feedback provides valuable
insights for refining products, services, and overall customer experience.

By leveraging CRM strategies and utilizing CRM software, I can increase customer
retention for my footwear brand. Through personalized engagement, proactive customer
support, loyalty programs, targeted marketing campaigns, personalized product
recommendations, ongoing communication, post-purchase follow-ups, and customer
feedback, I can foster loyalty and encourage customers to choose my brand repeatedly.

LIFECYCLE OF A CUSTOMER

The customer lifecycle is a term that describes the different steps a customer goes
through when they are considering, buying, using, and remaining loyal to a particular
product or service. This lifecycle has been broken down into five distinct stages: reach,
acquisition, conversion, retention, and loyalty.
The customer lifecycle begins the moment you first catch a potential customer's
attention.

1. Reach
This first stage is the point when you first make contact with your potential customer.
This contact could come from a Facebook ad, a coupon delivered in the mail, or even a
referral from a friend.
For this stage to occur, your business must be marketing in places where the right
people will see your content and become aware of your company. It is important to have
the right metrics in place so you can see which of your marketing efforts paid off the
most.
However, most people will not convert to paying customers during this stage. During this
stage, you are trying to capture your potential customer's attention and begin
developing a relationship with that person.
2. Acquisition
Now that you have the attention of your potential customers, they will move into the
acquisition stage. The goal of this stage is pretty clear; you are sending people to your
website in hopes of converting them into a subscriber or customer.
It's important to understand that most people will come to your website with a specific
desire or need in mind. So you need to help them understand how your business can
help them meet those needs. You should have a process in place that will guide them
toward converting to the solution that will help them the most.
3. Conversion
This is the stage where your lead turns into a paying customer. The best way to convert
your leads into paying customers is to focus on providing value and building the
relationship rather than simply selling the product. Your customer should feel welcomed
and valued; if this happens, the sale will happen on its own.
4. Retention
Now that you have gained a new customer, your goal should be to figure out how to
keep that person as a recurring customer. This means finding ways to upsell or
cross-sell to that person.
During this stage, you need to continue to build and maintain your relationship with that
customer. This means maintaining contact in some way and continuing to bring value to
that person so they will think of you every time they need your product or service.
Customer retention should be a top priority for businesses as studies have shown that
reducing customer churn by merely 5 percent can increase your profits by 25-125
percent. It is much more profitable for businesses to continue to sell to the customers
they already have than it is to find and market to all new customers.
5. Loyalty
The ultimate goal of the customer lifecycle is to turn your client into a friend who
regularly buys from you and recommends your product or service to anyone who will
listen. Obviously, not all customers will reach this point but you should acquire more with
each cycle. If you aren't reaching this point then you can look back to see where you are
falling short in the lifecycle stages.
Understanding the customer lifecycle and how to find and keep loyal customers is
crucial to the ongoing success of any business.
Of course, not everyone who makes a purchase will turn into a long-term customer. It is
hard to know who will turn into a repeat customer and who will make one purchase only
to never order from your company again. How can businesses determine the value of
each customer relationship?

What is the Customer Lifecycle Value (CLV)?

If you were to apply the Pareto Principle to your business, you can estimate that roughly
80 percent of your sales will come from 20 percent of your customers. So it is safe to
say that some customer relationships are simply more valuable than others. Estimating
who your most valuable customers are is extremely important for the continued growth
your business.
The Customer Lifecycle Value (CLV) is basically a prediction of how much value a
business will gain from the entire course of their relationship with any given customer.
Because you never know how long each customer relationship will last, CLV is basically
a way for businesses to estimate a customer's monetary worth over time. CLV is
important because it helps companies determine how much money they want to spend
on bringing in new customers and how much repeat business they can expect to gain
from certain customers.
A simple formula for estimating CLV is to multiply the profits earned per customer times
the average number of years they will remain a customer. Then you can subtract this
from the total acquisition costs. And from that, you have your customer lifecycle value.
Estimating CLV can help businesses change the way they think about customer
acquisition. Rather than simply trying to onboard a lot of customers as cheaply as
possible, CLV can help you optimize your spending for maximum value as opposed to
focusing solely on minimizing costs.
Conclusion
An important point to understand the customer lifecycle is that because it follows a
cyclical pattern, it never truly ends. The ultimate goal is to build strong brand loyalty and
to create customers that will become advocates for your company, referring your
product or service to their friends and family. To achieve this, companies must make
sure they stay relevant and are continuing to offer value to their customers.

COLLABORATION FOR EFFECTIVE CRM

A collaborative customer relationships management (CRM) system focuses on making
communication simpler and more effecient between departments directly focused on the
customer.

Collaboration enables each department to do their best work effectively as it saves time
and resources.
Successful collaboration leverages a team's unique perspectives, builds trust and
empowerment among collaborators.

Tips on How to achieve Effective CRM

- *Keep it SIMPLE*
The mistake alot of businesses make is that they try to do too much of everything. For
an effective CRM, you want to make sure to keep all tips very simple and efficient.

- *Stay in TOUCH*
You want to make the communication with your customers timely and relevant. For
example, you might want to stay in touch with "broadcast messages" but then make it
relevant. Do not unnecessarily spam your customers. Also target a well structured
message to each of your leads.

- *Build a PARTNERSHIP with them.*

Someone like me tends to relate with my customers through their status during my
leisure time. It makes some of them feel connected to you. You might also want to pick
an interest in some of their interests too to get involved in their world. This makes their
relationship with you build on a long term.

- *Take your TIME.*

One mistake you don't want to make is to move too fast with your customers. For
example, I did connect with someone sometimes ago and she bluntly told me she could
not save my contact except I'm ready to pay for her services.
This is a wrong move as a business owner. It takes time to develop trust and you want
them to trust you.

- *Understand EXPECTATIONS*
Do not assume you already know the wants of each customers. Instead, you want to
Understand their expectations. Ask for their expectations so you are sure you're
meeting with their needs.

- *Promise only what you can deliver*

We all tend to hold on to promises so you want to ensure you make promises you can
deliver. Promising them what you can't deliver breaks their trust for you and you might
lose your customers.

- *Seek FEEDBACK*
This is compulsory for you as a business owner either product or service related cause
it helps you work in areas you lack. Their feedback get you to improve where necessary.

- *Be RESPONSIVE*
Know how to quickly deal with complaints. It increases your customer's loyalty to your
brand. If you need to get more work hands, then you should.

- *Be CONSISTENT*
Be CONSISTENT! Be CONSISTENT!! Be CONSISTENT!!!.
If need be to go on a break, carry your customers along. Don't just disappear on them.
They would go somewhere else no matter how much they love your brand.

- *Vary your COMMUNICATION APPROACH*

While Cracky was talking about lead generations, he made us understand we have
them in three types.
1. The Cold Leads.
2. The Warm Leads.
3. The Hot Leads.

The tone of communication with a cold lead differs from warm while the warm also
differs from the hot.
You want to careful understand them to know how you will approach each Leads.

- *Show INTEGRITY*
As a business owner, you want to be honest with whatever you do. This helps during
days when things go wrong. Sometimes ago, on Tiktok, I came across a vendor that
sells hairs saying she got robbed or duped of millions of naira of hairs her customers
bought from her during sales. Alot of people came through for her cause alot of them
vouched that she is a very honest person.
What worked for her? INTEGRITY.

- *Add VALUE*
How do you want to differentiate your brand from others?
How do you tend to stand UNIQUE?
You want to add value to what you do. For example, as a clothe vendor, you want to
give tips to your customers on clothes to wear to a date, casual wears, official wears
and probably How to mix colors.
This makes your brand a GO-TO brand always. Cause for every occasion they have,
they remember you.

- *Reward LOYALTY*
Over times I've seen vendors reward their best purchasers. Some does it monthly, some
yearly. Whichever way, identify your loyal customers and reward them for their support.
Might be a gift, discounts, offers or anything you can probably think of.

- *Love your CUSTOMERS*

The only one reason your business exists is because of your customers and you really
want to cherish them so they do likewise also.

- *Say THANK YOU*

THIS!!! A must do.
There are varieties of ways to tell your customers thank you. Through freebies,
handwritten notes(my favorite cause it has a piece of you in it), email or whatever you
can think of. Appreciate your customers.

WHAT IS CRM SOFTWARE

Crm software is a tool designed to help businesses manage and enhance their
relationship with customers and prospects

Centralized Customer Database: CRM software provides a central storage for customer
information, including contact details, communication history, purchase history, and
other relevant data. This enables businesses to have a complete view of each customer
and their interactions with the company.

Contact and Lead Management: CRM software allows businesses to capture and track
leads, assign them to sales representatives, and manage the sales pipeline. It helps in
monitoring the progress of potential deals, sales, and identifying opportunities for
growth.
Sales Automation: CRM systems automate sales processes and workflows, such as
follow-ups. This improves sales efficiency and ensures that sales activities are executed
timely and consistently.

Marketing Automation: CRM software often includes marketing automation capabilities,

enabling businesses to create and manage marketing campaigns, track campaign
performance, and automate repetitive marketing tasks. It helps in lead generation, lead
nurturing, and customer segmentation.

Customer Service and Support: CRM platforms offer tools for managing customer
service and support processes. It helps businesses provide timely and effective support
to customers, resolve issues, and enhance customer satisfaction.

Analytics and Reporting: CRM software provides reporting and analytics functionalities
to gain insights into sales performance, customer behavior, and marketing
effectiveness. Users can generate customized reports, track key performance indicators
(KPIs), and identify trends and patterns in customer data.

Collaboration and Communication: CRM systems often include collaboration features,

such as task management, document sharing, and internal communication tools. This
helps teams work together efficiently, share information, and collaborate on
customer-related activities.

Integration Capabilities: CRM software can integrate with other business systems and
tools, such as email clients, calendars, marketing automation platforms, and ERP
systems. This allows for seamless data exchange and a holistic view of customer
information across different departments.

TYPES OF CRM SOFTWARE

Salesforce
Hubspot
Zoho
Fresh works
Insightly
Netsuite
Pipe drive
Agile crm
Sugar crm
Microsoft Dynamics 365