How does your ecommerce business build relationships with customers?
What if I were to tell you that relationships have one of the best returns on investments possible in any type of business setting. You might think I am crazy but it’s true.
Did you know that the ROI on a positive customer relationship is $5.60 for every $1 that you invest? That’s a crazy 560% return that all business owners should cash in on. One way to do this for your ecommerce business is by adding a customer relationship management solution.
Here’s what you need to know.
The Power of Building Relationships
Relationship building is one of the best methods that you can use to increase your average daily orders (ADO), average order value (AOV) and ROI while extending it beyond the initial impression or the first sale.
How valuable is a single customer relationship to you?
Fact: more than 90% of businesses that have 11 or more employees currently use a CRM to power relationships. The benefits of doing so are omnipresent. To drive this point home further, let’s take a quick look at some recent facts about CRM to find out why.
What the Facts Say:
- A 41% revenue increase is realized with CRM.
- Leads that are nurtured in the CRM convert 47% of the time.
- Conversion rates can improve by 300% with CRM in place.
- Average purchase value can improve by 40% with CRM.
- Customer service labor costs reduce by 40% or more.
- CRM improves customer service by as much as 74%.
- Average order value increases by 40% or more.
What is an Ecommerce CRM?
Now that you know why CRM is a must-have for any growing business, what is an Ecommerce CRM? To answer your question, an ecommerce CRM is a growth marketing solution for online businesses. It functions in a similar manner to traditional CRMs but has its own unique flavor.
Ecommerce CRMs are designed to help businesses connect with their customers across all their sales channels. To accomplish this, they connect to the shopping cart and sales channels via API. This lets the CRM import all the customer order activity. It then creates profiles and contacts based on this activity and offers the user a variety of different reporting and growth marketing tools to help them improve new relationships and nurture and sustain existing relationships.
Understanding Customer Behavior
Getting to know your customers better can help you improve your store’s operations to scale attractiveness to new visitors. The only way to gather this data is to have a cross-channel stream that feeds your business intelligence. In the past, this used to be a very tedious task that would require manual updates and lots of time spent hammering away at the data.
Today, it’s as simple as connecting your sales channels to the right CRM, so you can consolidate this data instantly, drive better engagement and know what to put into place to attract future customers. What’s more, with the right business intelligence, you can tailor your marketing budget, outreach and even flash sales and newsletters to reach targeted shoppers that spend more, return less and rave about your products and services.
Creating More Powerful Relationships
Relationships are more important than ever for a brand in today’s social media powered world. In fact, more than 70% of consumers look to a brand on social before even clicking to their store. And guess what? If you’re not nurturing new relationships and sustaining existing ones, you’re missing out on valuable social chatter and referrals, not to mention a surefire revenue stream that could be going to your competitors.
Certainly, your products, pricing, services, customer service model, shipping and return policy all factor into whether a customer will do business with you or not. So why take any risks on losing hard earned relationships or potentially compromising new ones? Just add a tool like ecommerce CRM to your arsenal and make the most of every customer interaction you have.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.