CRM PLUS©
M
ost are familiar with the term Customer Relationship Management, usually referred to as CRM. A recent Google search on CRM generated 43 million returns. The importance of managing customer relationships is unquestioned. Within the traditional CRM is CRM PLUS© that needs full attention: Customer Referrals Marketing. CRM PLUS© is the focus of this article. We titled this customer relationship as “plus” because the Lifetime Revenues from referred customers are far superior to other ‘new customers’ acquisition programs. Reviewing Customer Referrals Marketing strategies of industry leaders is a powerful tool to expand your own customer referrals programs. The insurance industry is one that has a proven customer referrals leadership record and its strategies can be applied to most organizations. One advantage of comparing leadership strategies to your own is that you can choose the features that compliment your referral programs without starting from scratch. CRM PLUS© strategies are excellent supplements to most Customer Referrals Marketing programs. Understanding your customer’s attitude about making referrals allows you to efficiently allocate marketing resources. Customers usually fall into three referral opportunity groups. This chart Customer Referral Profile shows how these groups are equally divided.
“33% of customers says they will make referrals, but don't” (1)
Additional attention and applying more resources to this opportunity group will help keep these customers engaged. The insurance industry has pioneered programs to keep customers engaged. Engaged customers are more likely to follow through with their referral commitments. Getting referrals from committed customers is more cost effective than trying to shift the attitude of customers who virtually never make referrals. Customers who always tend make referrals will continue doing so when you provide great products and services at competitive prices. Understanding your customers’ referral commitment attitudes and keeping them engaged will help you build the platform for effective and enduring Customer Referrals Marketing strategies. Under performing referral strategies can be improved by approaching referrals as a form of advertising to managers and sales personnel: • providing monthly electronic messages about new referral topics • sharing comments among peers about each referral topic