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4. Guidelines to make CRM work in the tourism business
Here are some guidelines to make an effective CRM system work for
you.
1. Develop a philosophy of nurturing long term mutually beneficial customer relationships that foster a sense of community and belonging
While a feature of a loyalty programme is rewards, the focus should be developing relationships Aim is to make the cost of switching brands expensive for the customer so that the benefits of a relationship should outweigh the costs to the business
Building a relationship with customers is not an easy task, but putting in the effort can be extremely rewarding for both parties. Building meaningful customer relationships is beneficial to both customers and organizations. In fact, 86% of customers who have an “emotional connection” with a brand are more likely to continue business in the future. This reinforces the idea that a good first impression and nurturing consumer relationships from the start can pay off down the road.
2. Develop a customer database
CRM is reliant on customer information recorded transactions provide the business with information on purchases and effectiveness of rewards initiatives. It is a repository of customers’ information that can be accessed by sales staff and service staff. A database does not have to be technologically complex or expensive.
Remember small businesses can get closer to their customers than big firms as it can be more responsive to changing conditions and better able to adapt as market conditions change. Because a small business is closer to its customers, it is in a better position to hear feedback and observe changing preferences. With a small business, employees are more likely to be cross-trained. This adaptability comes in handy when you need to rethink your business model and it enables you to keep quality people on staff and to draw on their knowledge of your business and customer base.
3. Select customers who offer maximum yield
It is not always feasible to develop a relationship with every customer. It is important to identify those who are less price sensitive, and less likely to switch brands for a better deal. Therefore your selection criteria will include:
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frequency and volume of purchase, spending patterns and probability of future visitation
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A tier system can be developed to differentiate members by their value level
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Selection of profitable customers that the business is best able to cater to their needs.
This selection criteria is highly dependent on your Business Information System and the data analysis you keep. You can reflect back on Module 2 to assess whether you have the capacity to extract this information.
4. Provide added value to loyal customers
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Financial rewards are essential
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Can be short term (e.g. make a purchase and receive a reward)
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Or long term (e.g. repeat purchase points accrue towards a prize target)
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A tiered system provides enhanced sense of status
Your loyal customers are in a relationship with your brand, so don't treat them like strangers.
Have a read through these articles to get some more ideas:
Options include:
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Exclusive offers
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Service upgrades
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Priority seating
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Exclusive opportunities to preview new service and product offerings
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Preferential reservation contact number
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Guaranteed reservations at any time
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Members only events
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Special dedicated amenities such as a members’ lounge
Communicate with loyal customers via direct media in a meaningful way. While mass distribution of customer newsletters are useful, effective CRM involves personalised messages.
This should be based on the customer’s personal information in the database. Here are some ideas.
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special offers related to their purchase preferences.
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targeting previously frequent customers who are overdue for a visit.
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Special offers to customers on the database who have reported a negative service experience.
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Competitions that acknowledge customers’ tier status
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An off-peak offer of added value that recognises the customer’s personal preferences.
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Email seeking feedback on the recent service
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Birthday and anniversary special offers
Consider what mechanisms you have in place to capture valuable data about your customers' purchases and purchase behaviour. Then use that data to strengthen your relationship. Are they due for a service call? Send them reminders. Acknowledge milestones. Has it been six months or a year since they bought that big-ticket item? Check in to see if they are satisfied. Keep them updated about promotions or product updates. Tailor your communications as much as possible. Personalised messages make customers feel valued, stand out in their inbox and contribute to brand loyalty. Reward those who are loyal to your brand. Send out coupons and promotions, or create a point program. Feature member-only discounts or special sale preview hours that incentivize loyal customers to shop. Do keep in mind loyalty programs don't need to be just about freebies. Find creative ways to let your loyal customers know you appreciate their devotion to your brand and give them a good reason to shop!
There are numerous studies that demonstrate the effectiveness of personalized communications, email in particular.
According to the 2018 Bond Brand Loyalty Report:
• 77% of consumers say they are likely to stay with a brand that has a loyalty program.
• 70% of consumers are more likely to recommend a brand with a good loyalty program.
• 63% of consumers say they're prepared to modify their spending habits in order to maximize the benefits of a loyalty program.
5. Word of Mouth
Delighted customers can be an asset to the business, even if they are unlikely to return themselves Exceeding a customer’s expectations is the foundation of Word of Mouth. Yes, it indeed difficult to keep exceeding the same customer’s expectations over time yet Word of Mouth referrals are a powerful organic brand image building agent. Therefore one should encourage Word of Mouth from customers and make it easy for them to do so…ask for feedback and referrals
Encouraging your customer to share their positive experiences
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Social media photo opportunity, Facebook ‘check in’, Twitter hashtag
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Offering incentives for influencers to post on their feed
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Incentivise online testimonials on TripAdvisor etc
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Online competition, where entry requires the participant to share the post
Have a look here for some more ideas
We all know that social media marketing is one of the best ways to build rapport with your audience and grow your business. Platforms like YouTube, Instagram, and Twitter have grown rapidly and are not showing signs of slowing down.
It is possible to use social media to share helpful content, promote products, forge connections with partners, and so much more.
When you look at how customers use social media, it becomes clear why these sites are so crucial for consistent growth. The average person spends nearly 2.5 hours on social media every day. Meanwhile, these platforms drive 31% of traffic to other websites.
Encouraging customers to recruit other customers
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Incentives such as discounts or prizes
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Get feedback from customers on preferred rewards
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Promote the referral programme
Asking existing customers to refer your business to prospects in exchange for incentives can increase your trustworthiness, credibility, scope, and reach — all crucial components of effective selling and strategies for attracting more customers. A good referral program can be of big help to businesses of all sizes.
The program should encourage your loyal customers to share your brand with their friends, colleagues, and family members. You should typically offer a reward like a small discount or gift card in exchange for their effort.
Things That Changed with social media Word of Mouth
1. People trust each other more than brands.
Trust in peer suggestions is only helped by social media. For instance, Facebook has a function that lets users make product suggestions.
2. Influencer marketing is on the rise.
Influencer marketing spending grew almost 34% in 2021.
Influencer marketing is only growing and helps businesses gain brand awareness, increase sales and conversions, and reach new audiences. Audiences trust influencers and they’re able to engage directly with that audience as an ambassador for your brand.
3. Social media likes don't necessarily mean a recommendation.
A well-performing tweet shows that you know your audience — but it doesn't guarantee a recommendation.
Drive your audience to the comment section by including language like, "Let us know what your favourite breakfast is in the comments below" or "How has our new guide to local heritage sites helped you?"
Indicators of successful WOMM include:
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People recommending your product to other users
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Users tagging their friends to try your brand's products or services
4. Online product research has made WOMM more relevant.
People trust online reviews that feel authentic. In fact, 89% of consumers are more likely to use a business that responds to all of its online reviews.
By encouraging your customers to give reviews of your business on social media you'll attract customers who are drawn to reviews and scores.
5. User-generated content is more important than ever.
User-generated content is potentially more effective than paying influencers. For example, according to Nosto, 79% of people say user-generated content highly impacts their purchasing decisions.
To encourage user-generated content, make followers aware that you support it in posts. A simple "Tag us in a picture of your ……featured on our feed," encourages your followers to exercise their brand loyalty in hopes of getting a shout-out. This practice also builds community on social media.