CRM in Retail

• A retail CRM is optimized to support the high frequency, repeat

purchasing of a business-to-consumer (B2C) model. A good retail
CRM will provide insights on when it’s best to reach out to a specific
customer again and what the customer is likely looking for.
Retail CRM Benefits
• Have you ever tracked your customers and their contact information in a
Google Sheet? If so, you’ve built a customer database and created customer
profiles without even knowing it. Many small businesses do this, and some
even use their POS as a stand-in for a CRM. 
• While these strategies may work in the early days, eventually you’ll find
yourself with something quite unwieldy or unreliable. That’s when you’ll
want to find a software solution that is designed to help you manage all your
customer data in an actionable way. 
• There are a number of benefits to introducing a CRM into your retail stores.
Moreover, equipping your sales team with this kind of tool will likely result
in a much better customer experience than your competitors offer. 
For Clientening
•  Clienteling is one of the strongest strategies when it comes
to increasing customer retention and building loyalty. 
• As we explain in our definition of clienteling, clienteling refers to the
process of efficiently using customer data in order to create intimate
customer relationships. While clienteling is easy on a small scale with
just a handful of customers, you’ll get dramatically better results if
you’re using a CRM to build these kinds of relationships because
you’ll be able to target a wider audience without sacrificing
personalization. 
For Loyalty
• While new customers are always the goal, customer loyalty should
also be celebrated. In fact, a retail CRM can serve you best once
you’ve acquired a customer and are ready to focus on
cultivating loyalty. A CRM should be your go-to resource for
understanding what sort of incentives and rewards your customers are
most likely to respond to, and can help you keep track of what their
response has been to your various offers and services. As you develop
your retention strategy, you should also be able to count on your CRM
to actually segment your customers to determine who is eligible for
your various perks, tiers, and prizes that make up your loyalty
program.
For Personalization
• Which brings us to a third benefit of a CRM—personalization. Emails
with personalized subject lines are 26% more likely to get opened, and
the more targeted you are with your audience, the higher your
conversion rate on messages will be. 
• A CRM can help you achieve both those things. The more data you’re
tracking in your CRM, the more you’ll be able to segment and
personalize your audience to ensure that the content of your message
feels ultra-relevant to the final group of recipients.
For Performance Tracking
• Especially for big organizations, CRMs are particularly helpful for
management teams who want to stay on top of how each salesperson
is contributing. With most CRMs, users are able to “claim” a customer
or a deal, and this aspect is no different for retail. 
• Encouraging your salespeople to be accountable for customers’
spending behaviors will motivate them to be even more thoughtful and
strategic about their work and the way they reach out. A CRM will
also therefore be able to report back how each salesperson has
impacted your bottom line, whether that’s on a per-transaction basis or
across their customers. 
How to use retail CRM
• A CRM should provide your sales team with an all-in-one solution so
that they are not relying on multiple resources to accomplish the most
fundamental tasks. The purpose of a CRM system is to give the entire
team a comprehensive view of a customer’s entire journey, including all
customer interactions with your company, so that they can look broadly
at what’s been going on but also dive into the nitty gritty when
necessary. 
• In order to achieve this 360º view, your CRM needs to provide a way for
users to store data and then analyze this data for you. Below is a
breakdown of how a single user should be able to move through a CRM
in order to accomplish his or her goals. 
“If you do not know where you come from, then
you don't know where you are, and if you don't
know where you are, then you don't know where
you're going.” - Terry Pratchett
What is RFM model ?
• There are many models that can be used to segment customer data. If a retail
organization is not currently using a framework to drive segmentation, we
recommend starting with the RFM model because it’s simple and effective.

• While RFM analysis can be helpful for B2B companies, it is typically most useful
in B2C businesses & retail industry where customers make multiple purchases
over time. The RFM model was created in the mid-90s to help catalog marketers
target specific customer segments within their databases that had the greatest
likelihood to purchase based on previous behavior. The goal was to save on
printing and shipping costs. Today, the RFM model is used by digital marketers to
send relevant marketing messages, keep their customers engaged, and maximize
the lifetime value of each customer.
RFM
Customer Acquisition Cost (CAC)
• Customer Acquisition Cost, or CAC, measures how much an
organization spends to acquire new customers. CAC – an important
business metric – is the total cost of sales and marketing efforts, as
well as property or equipment, needed to convince a customer to buy a
product or service.
Features & Benefits of CRM for
Customers
• Preview Sale offers
• Exclusive & Customize discount offers
• Valet Parking
• Birthday & Spouse & Family birthdays offers
• New Arrivals & preferred brands arrival products information
• Repeat Purchase coupons & offers
• Marketing ROI
• Retail CRM will allow custom tags and fields to be linked with contact info. These tags
and files can be referred to specific customer attributes which are not built into the CRM.
Identifying this correlation allows you to target the marketing resources towards customers
based on known interests and requirements which in turn yields better marketing ROI.

Profitable customers
• The more customers’ data in your retail CRM, the more will be the pinpoint opportunities
and pitfalls. High granularity in the customer data allows you to identify the cost per
customer, which is a metric that includes marketing expenses and the customer service
cost that weighs against how much they spend. Not only does this inform individual
agent’s time allocation for the value of service, but also it helps to identify your most
profitable customers.
Prevents leads
• This applies to the customer who engages organizations across multiple channels. Customers are shown
recently viewed items when they come back to your site and they will receive email reminders for
unpurchased items. The most common reason for online customers to abandon their shopping carts is the
discovery of unexpected cost which can be mitigated with the one-time promotion.
• Improve in-store experience
• This applies to retailers with brick and mortar presence. As retail CRM data inform retailers about their
shopper's demographic traits and associated spending habits and the desired preferences. The same analysis
for customer segmentation isolates for the region or the branch that informs store layout and promotions
while loyalty cards can contribute to the larger CRM database.
• Improves productivity with automation
• Employees time and mental bandwidth being best used towards productive ends and the valuable CRM data
with often scrapped from digital marketing services whereas online tracking still needs some manual input.
The retail CRMs are able to automate data entry as well as notification and follow up the reminders to
decrease employees time spent in navigating the platform.
Effects of CRM on Retail Industry
• Segmentation
• CRM helps you to gather information about each of your customers that include
preferences and demographic data. You can use the information to segment your
market and thus customize your approach to each group of the customers. The effect of
segmentation is based on the CRM data to adjust your retail strategies to better suit the
customers that you majorly have.
• Promotions
• The data that you gather within the CRM system helps you not only target market
segment with portions to appeal to its members but also target your customers
individually. If you see that the customer has visited your site and looked at the
particular product, then you can include promotions of those products in their mail. In
this way, CRM will help to decrease promotions that are of no interest to the recipients.