Nexa Lab Blog – What is customer relationship marketing? This might probably be the question needed to be answered by business owners looking to drive growth in their businesses.
In today’s competitive business landscape, understanding and living customer relationship marketing can be the difference between thriving and only surviving for many.
We have been in the trenches, acres deep in the MSP world, and we know how important it is to build strong, lasting relationships with our clients.
And one way to keep that connection is through the process called customer relationship marketing.
Today, we’re going to dive deeper into the concept and learn more about how CRM software can help you do that.
What Does Customer Relationship Marketing Mean?
Customer relationship marketing refers to the act of developing continuous relationships with clients.
Product Marketing Alliance mentioned in their blog post that customer relationship marketing is a product marketing strategy that companies use.
This strategy revolves around concentrating their business and product marketing efforts around customer relationships, customer needs, and customer loyalty.
The approach focuses on using customer feedback and data to optimize product marketing.
What it really means is that it is not limited only to selling and going away. This also creates a mutually beneficial partnership over time.
Think of it like tending to a garden—we are not just sowing seeds and going our way.
We are actually taking care of our relations, like nurturing, watering, and watching them grow and flourish.
This approach becomes particularly important in the MSP business.
Our clients depend on us for follow-up support and service. Consequently, the key ingredients for our success are strong relationships.
But it’s more than just about giving good service—although that’s clearly an important part.
It’s about knowledge of our clients’ businesses, visions into their needs, and constant delivery of value over their expectations.
It’s about becoming not just any provider of service but a trusted partner in their success.
More on Nexalab’s blog: How to Improve Customer Relationships: 7 Strategies for Business Success
4 Stages of Customer Relationship Marketing
There are 4 stages that you need to do in customer relationship marketing, according to Santa Clara University. Those 4 stages are customer acquisition, retention, expansion, and reactivation.
Let’s break down all of those stages to understand how they contribute to building strong and lasting relationships with customers.
Stage 1 – Customer Acquisition
The first step in our customer relationship journey is acquisition.
This is where we put on our detective hats and seek out potential clients who are the perfect fit for our services.
We’re not casting a wide net and hoping for the best.
Instead, we’re using targeted strategies to attract businesses that align with our expertise and values.
For example, we might focus on industries that heavily rely on IT services, such as healthcare or finance.
By focusing our marketing efforts on these sectors, we stand a better chance of attracting clients who really need what we sell.
But acquisition isn’t just about finding new clients; it’s about finding the right clients.
We’re looking for businesses that not only need our services but also share our values and vision.
This alignment is crucial for building long-lasting relationships.
You need to take time to really understand a potential client’s needs, challenges, and goals during the acquisition phase pays dividends down the line.
It allows you to start the relationship on the right foot, with a clear understanding of how we can add value to their business.
Stage 2 – Customer Retention
Once we’ve brought a client on board, our focus shifts to retention.
This is where the real magic of customer relationship marketing happens.
We’re not just providing a service; we’re becoming an integral part of our client’s business ecosystem.
You can achieve this by consistently delivering exceptional service, anticipating needs, and going above and beyond expectations.
Remember that time when one of your clients faced a major system crash right before a crucial presentation?
You pulled an all-nighter to get them back up and running, and they’ve been singing our praises ever since.
That’s the power of retention in action.
But retention isn’t just about putting out fires.
It’s about proactively maintaining and improving your clients’ systems, keeping them informed about new technologies and potential threats, and constantly looking for ways to add value to their business.
It’s about building trust through consistent, reliable service and open communication.
You can strengthen your relationships with clients through regular check-ins, quarterly reviews, and annual strategy sessions.
These touchpoints allow you to stay aligned with their evolving needs and demonstrate our commitment to their success.
Stage 3 – Customer Expansion
As our relationships with clients deepen, opportunities for expansion naturally arise.
This doesn’t mean you need to constantly upsell or push unnecessary services.
Instead, we’re keeping an ear to the ground, listening for pain points or growth areas where you can provide additional value.
For example, if you notice a client struggling with cybersecurity, we might suggest implementing a more robust protection plan. It’s about growing together, not just growing our bottom line.
Expansion can take many forms.
It might mean introducing new services that complement your existing offerings, or it could involve helping a client scale their IT infrastructure as their business grows.
The key is to approach expansion from a place of partnership and mutual benefit.
We’re not just looking to increase our revenue; we’re looking to increase the value we provide to our clients.
This approach can lead to some of your most successful long-term relationships.
Stage 4 – Customer Reactivation
Even with the best efforts, some client relationships may cool off over time.
That’s where reactivation comes into play.
We’re not afraid to reach out to dormant clients, reignite the spark, and remind them of the value we bring to the table.
Maybe it’s a personalized email highlighting new services that address their evolving needs, or perhaps it’s an invitation to an exclusive webinar on emerging tech trends.
The key is to show them we haven’t forgotten about them and that we’re still committed to their success.
Reactivation requires a delicate touch.
It’s important to approach these clients with empathy and understanding. Perhaps their needs have changed, or they’ve faced challenges that led to the cooling of our relationship.
So, take your time to understand their current situation and try to offer solutions that address their specific needs.
Strategies for Effective Customer Relationship Marketing
Now that we’ve covered the key components, let’s dive into some practical strategies we can implement in your businesses:
- Personalisation is key: Gone are the days of one-size-fits-all marketing. We need to tailor our communications and offerings to each client’s unique needs and preferences. This might mean segmenting our client base and creating targeted campaigns for each group, or even personalising our communications down to the individual level.
- Leverage data and analytics: By analysing client data, we can gain valuable insights into their behaviour, needs, and potential pain points. This allows us to proactively address issues and offer relevant solutions. Tools like predictive analytics can help us anticipate client needs before they even arise, allowing us to provide truly proactive service.
- Implement a robust CRM system: A good Customer Relationship Management system is worth its weight in gold. It helps us track interactions, manage leads, and ensure no client falls through the cracks. We’ve found that investing in a quality CRM and training our team to use it effectively has dramatically improved our ability to manage and nurture client relationships.
- Provide value beyond your core services: Host webinars, share insightful blog posts, or offer free consultations. You need to position yourselves as thought leaders to build trust and credibility. This approach not only helps retain existing clients but can also attract new ones who are drawn to our expertise.
- Encourage and act on feedback: Regularly seek client feedback and, more importantly, act on it. This shows we value their opinion and are committed to continuous improvement. We’ve implemented a quarterly feedback survey, and the insights we’ve gained have been invaluable in refining our services and strengthening our client relationships.
While strategy is important, the software solution implementation also becomes another part of the strategy that can help you drive your customer relationship marketing process.
Like we’ve said above, CRM software can be the solution for you if you are trying to start a customer relationship marketing strategy.
However, we know that some MSP businesses might already implement another software solution, like professional service automation, for example.
But PSA software can’t solve every problem of your business processes.
Those might be good for ticketing and project management, but CRM software is specifically designed to enhance customer relationships and drive marketing efforts.
That’s why you need integration between your software stack.
Integrating it might be a little bit technical, but a little help from an integration expert like Nexalab can ensure a seamless connection between your PSA and CRM software.
With the right integration, you can maximise the benefits of both systems and streamline your business processes for improved efficiency and effectiveness.
More on Nexalab’s blog: Why Customer Relationship Management is Crucial in a Market-Oriented Approach
Conclusion
So, what is customer relationship marketing? It’s unlocking our businesses to their full potential—one relationship at a time. It’s being able to view the client not as a customer, but more as partners in the journey to success.
It’s more than building a customer relationship flow; it’s also about how you utilize a software solution to help with that.
Investing in CRM software is a smart move for any business looking to improve sales, marketing, and customer service.
But to get the most out of your CRM, it needs to work with your other tools.
Nexalab’s App Integration Services can help you connect your CRM with other essential platforms, like PSA software, for example. This means you get a complete view of your customer data, automate repetitive tasks, and personalise your customer interactions. It’s a solution that helps you get the most out of your CRM investment. Contact Nexalab today to explore how App Fusion can drive your business forward.
