CRM system: use customer data for better service and customer loyalty
- Amber Kuipers
- Edited 28 October 2022
- 4 min
- Managing and growing
In a Customer Relationship Management, CRM system, you store useful information about your customer. This allows you to send a personal reminder at the right time or make a targeted offer. Read on to find out if CRM is for you and how to get started.
Customer Relationship Management, or CRM, allows you to store information about your customers and your relationship with them. A CRM system is an (online) programme. In it, you store information about your customers, for example, their email addresses and orders (with the customer’s permission, of course). And notes on your conversations and agreements, such as preferences for certain products or questions customers ask you. Cora van der Meijde works at dbf as a customer data expert and shares her advice.
Why CRM?
"You get to know your customers better, which allows you to approach them in a more personal way. And that in turn leads to more loyal customers," says Van der Meijde. She gives an example: "Take a hair salon. With a first name and e-mail address, they can already get started. They can send a monthly e-mail with a discount offer to their customers. Do you also know when a customer last visited? Then send a reminder to all customers who have not visited for 2 months, for example. This way, you bring positive attention to the hair salon regularly and customers will come back."
Disadvantages of CRM
"Purchasing and maintaining your CRM system costs money, time and attention. Think for instance of updating data and implementing customer requests not to receive mail. A request for removal from your file is something you handle carefully, especially when someone has passed away."Â
Getting started with your own CRM
Step 1: Determine your goal
"Determine your goal before collecting customer data. Below is an overview of different goals. We will stick with the hair salon example but you can also use most of the examples for business customers."
- More new customers
- More returning customers
- Higher spending per customer
- Retain customers
- Higher customer satisfaction
- Better image
- Improve product or service
Step 2: Think about what customer data you need
"Think about what customer data you need for your goal. Below you will find the overview completed with examples of customer data for the various goals. You can start with a name and e-mail address. Gradually supplement the customer data with, for instance, address, date of birth and purchase history. The more data you have, the more you can personalise and combine."
| Â Your goal | What customer data do you collect? | Example follow-up action |
|---|---|---|
| More new customers |
Name and e-mail address of current customers | ... |
| More new customers |
 Name, email address of current customers. | ... |
| More repeat customers | Name and e-mail address of current customers. | ... |
| Higher spending per customer | Name, e-mail address, number of purchases, amount per purchase, date of last purchase. | ... |
| Retaining current customers | Name, e-mail address, last purchase, total of purchases in euros. | ... |
| Higher customer satisfaction | Name, address and date of birth. | ... |
| Better image | Name and e-mail address. | ... |
| Improve product or service | Complaints, feedback or comments. | ... |
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Step 3: Know how to protect customer data
You work with personal data, so you need to comply withGDPR and privacy . Demonstrate your compliance by creating a GDPR processing register, showing what personal data you use and why you use it.
Step 4: Devise your follow-up action
Once you know your goal and have collected customer data, consider what action you need to take to achieve that goal. "Below you can see the overview completed with examples of follow-up actions to achieve your goal."
| Your goal | What customer data do you collect? | Example follow-up action |
|---|---|---|
| More new customers |
Name and e-mail address of current customers | Tell-a-friend e-mail with discount code for a haircut for a friend. |
| More new customers |
 Name, email address and city of residence of current customers. | From which region do you have no customers yet? Distribute door-to-door leaflet in that area. And/or social media campaign |
| More repeat customers | Name and e-mail address of current customers. | (Digital) savings programme. The more often someone comes, the more loyalty points they receive. |
| Higher spending per customer | Name, e-mail address, number of purchases, amount per purchase, date of last purchase. |
Targeted e-mailing with discount offers on products the customer has bought before. |
| Retaining current customers | Name, e-mail address, last purchase, total of purchases in euros. |
Organise VIP event for top customers. |
| Higher customer satisfaction | Name, address and date of birth. |
Send customers a present on their birthday. |
| Better image | Name and e-mail address. |
Ask for reviews on your own website or review website. Reward a review with a nice discount or gift. |
| Improve product or service | Complaints, feedback or comments. |
Improve your product. Or explain your product or service (your marketing). |
Step 5: choose a CRM system
‘If a CRM system is too big an investment for now, start by collecting data in your cash register or booking system. If your system has the capability to store customer data, purchase history and emails. You can start in an Excel document, but we do not recommend it,’ says Van der Meijde, "because Excel is not designed for that; it's a calculation programme.
When doing preliminary research, pay attention to the purchase price (one-off or monthly fee). And whether it connects to your other systems, such as your cash register, logistics, inventory or invoicing system. In addition, check whether the data can be easily imported or exported. Ask for a demonstration of the system or even better: ask to try it out for free for the first month."
