If you’re not using a CRM for your eCommerce business, you’re loosing out on a number of opportunities to increase revenue, cut costs and improve your customer experience.
It doesn’t matter whether you have a single store or several stores, using a CRM can help you turbocharge your business, and this article will provide a step-by-step guide of how to do just this.
1. Identify your most valuable customers
Not all customers are created equal.
The Pareto Principle states that 20% of your customers will generate 80% of your revenue. So you obviously want to make sure you know exactly who these customers are!
Tim Ferriss author of the best selling book The Four Hour Work Week is a well known advocate for the Pareto Priciple, also known as the 80/20 rule. Take a look at his thoughts on the matter:
Using your CRM, you’ll instantly be able to create a report identifying your 20% most valuable customers based on revenue.
Here are just some of the things you can do with this data:
Get these customers to keep coming back
It can cost up to 7x more to acquire new customers than it does to retain existing customers.
Now that you know who your very top customers are, you can ensure they are made to feel valued so they’re more likely to keep coming back.
Random and unexpected rewards are generally the most effective, which could include one off coupon codes, gift vouchers or maybe even a free gift.
You also might like to consider tagging these customers in your customer service app, to ensure your support team gives them the highest level of service.
Find more customers that are just as profitable
By analysing this report, you’ll be able to identify commonalities in your top 20% of customers.
Using this data you can improve the effectiveness of your marketing by optimising your targeting to reach this audience.
This will lead to a better ROI on your marketing spend with an improved customer lifetime value (LTV) which will significantly increase the profitability of your business.
Fire unprofitable customers
You might also like to look at your bottom 80% of customers. Quite often you’ll find that your least profitable customers are the ones that cause the most headaches.
These headaches generally include endless customer support issues and excessive refunds or returns.
If they’re taking away valuable resources from your top customers, you might decide you need to fire these customers. If this is your decision, this can be done by politely redirecting them to another supplier.
2. Identify your best selling products
You can also extend the Pareto Principle to your products, identifying which 20% of your products account for 80% of your revenue across all your stores. Again just pull a report from your CRM, but this time for products and revenue.
Increase revenue by finding similar products
By knowing your best selling products, you can increase revenue by sourcing or creating similar products you can sell.
You can do this by looking at the report and identifying similarities in the top performing products, This means you are using data to predict which new products are likely to be most profitable as opposed to intuition only.
Eliminate poor performing products
By looking at your 80% worst performing products, you will more than likely see some products that are performing particularly poorly.
For each of these poor performers, you can evaluate if it’s worth continuing to offer them - taking into consideration storage, depreciation and support costs. If you decide it isn’t, then get rid of the products and cut your costs immediately.
3. Stay on top of your business with dashboards
Experts largely agree that you shouldn’t begin your day by checking email. If you do this you’re just allowing other people to control your day, which is a recipe for disaster.
Instead, replace this habit by checking your dashboard within your CRM. By creating customised dashboards with your key business metrics, you’re going to be significantly more effective because you are constantly getting feedback on how your actions are affecting your key metrics.
Both Salesforce and ZohoCRM make it super easy to set up dashboards in minutes.
Some of the metrics you might like to track include:
This might show the revenue you’ve generated across all stores, against your monthly target. If you’re consciously aware of how you are performing against your revenue target, you’re going to be in a much better position to do something about it if you’re tracking behind.
Monthly Order Volume
This is the number of orders you have received for the month. Showing this metric over time, gives you an indicator on how effective you have been at acquiring new customers and encouraging existing customers return more often.
Average Order Value (AOV)
This is the average size of an order on your store. For example, your AOV is $60 per order if you made $240 from 4 orders. Showing this metric over time lets you know if your efforts to increase their shopping cart size have been working.
Increasing your AOV can have a huge effect on your business. If you increase AOV by just $10, and have a monthly order volume of 1,000 orders, you’ve increased your annual revenue by $120,000!
Net Promoter Score (NPS)
Your Net Promoter Score shows how loyal your customers are to your business. By visualising the trend of your NPS in real time, you’ll be able to quickly identify and resolve any clear issues that arise and also see the results of any initiatives implemented to improve customer experience.
4. Get a 360-degree view of your customer
With all your data in your CRM you’ll have complete view of your customers, allowing you to delver the best customer experience possible.
Some of the data that you might like to have available to you could include:
See a complete order history for each customer across all your online stores.
This is particularly useful because you don’t need to log in and out of your various stores (e.g. Bigcommerce or eBay) to view a customer’s order history. Your customer support team will definitely thank you for this!
You might also want to limit access to your shopping carts for security reasons. Viewing order history within your CRM means you don’t need to give out your login details.
Most of these apps allow you to integrate directly with your CRM so you can see the communication history for each individual customer across email, social media and even live chat!
Customer lifetime value
Showing the respective lifetime value against each customer in your CRM will mean you instantly know how valuable each individual customer is to your business.
By knowing a particular customer has a high lifetime value, you can ensure they receive the highest level of customer experience possible.
See the details for each customer, which includes their name, address and email address.
In addition, you might like to collect their NPS or CSAT rating which will give you a clearer picture of how this customer feels about your business.
A great survey tool I use for collecting data is GetFeedback.com. It works extremely well if you use Salesforce, and you can easily get it working with your customer service app (e.g. ZenDesk or Salesforce Desk.com) by directly embedding surveys in your email communications.
Other information you might like to collect includes age, gender and interests which will help you improve your advertising targeting when acquiring new customers, cutting your advertising costs.
Plus predict (and influence) the future
With all this data at your fingertips, you’ll not only be able to predict the future — you’ll be able to influence it.
Through looking at past behaviour, you an identify customers that are likely to churn (e.g. customers who haven’t ordered in 90 days) and provide them an incentive to return such as a coupon code.
You will also be able to identify opportunities where you can cross sell products. For example you can pull a report of all customers who have purchased a certain product, and send them a targeted email with a special offer for a complimentary product.
5. Getting data into your CRM
Your CRM is only as good as the data in it. You might be wondering how you’re going to get the data from your shopping cart into your CRM.
The good news is that instead of manually entering the data or importing messy CSV files every day, you can have this done automatically.
OneSaas is a platform that allows you to connect all of the most popular shopping carts and marketplaces to Salesforce or ZohoCRM. Each time a customer places an order, your CRM will be updated with the customer, sales and product data.
Having this done automatically is going to save you hours every month, so you can focus on getting results rather than the administration.
Using a CRM for your eCommerce business can help you identify and retain your best customers, uncover your best selling products, help you meet your KPIs using dashboards and provide a 360 degree view of your business.
If you want to increase revenue, cut costs and improve your customer experience then a CRM like Salesforce or ZohoCRM is for you.
And if that isn’t convincing enough, if you’re not using a CRM your competitors almost certainly are.