News & Articles

 

Customer Relationships are 12 Times More Powerful than Customer Satisfaction in Driving Purchases per New CRM Market Research

In this economy, Customer Satisfaction is expected. Customer Engagement and Customer Relationships (CRM), are the factors which drive purchases, per market research findings.

NEW YORK--(BUSINESS WIRE)--This tough economy has significantly increased what customers expect from businesses.

According to Ernan Roman, President of Ernan Roman Direct Marketing, “Per results of market research we have conducted over the past 12 months, in this prolonged tough economy, people have come to expect a decent level of Customer Satisfaction. This is viewed as a minimum competency and no longer differentiates a company. Customer Engagement and Relationship (CRM), have become the powerful new factors which impact likelihood to remain a customer and re-purchase.”

Roman adds that “Relationship strength has 12 times more influence on retention and repeat purchases than Satisfaction. Customer Engagement and Relationship also trump Customer Satisfaction in driving likelihood to recommend a company to friends and family. Relationship strength has 18 times more influence on word of mouth recommendations than Satisfaction.” For additional details, click here:

This has tremendous implications for all CRM customer relationship management marketers, especially those who are focusing on acquiring new customers and not allocating sufficient resources to strengthen the quality of engagement with current customers.

Innovative CRM marketers like Microsoft, Hewlett-Packard, and AmieStreet.com have achieved significant results by providing deeper levels of engagement and value for customers. Results are significantly greater than from traditional “Spray and Pray” blasts of email, mail, and phone.

Results Microsoft achieved by providing small business customers with deeper levels of CRM engagement and value:

  • Exceptionally high opt-in rates: 40% to 70%+
  • Click-through rates up to 75%
  • Spending by SB+ members significantly exceeds non-members. Case study:

AmieStreet.com is another CRM customer relationship marketing innovator. This young company is the hottest on-line social networking music company. Their relationship marketing results:

  • 16% increase in new customers
  • 16% increase in repeat purchases
  • 75% increase in newsletter-driven sales. Case study:

Microsoft and AmieStreet.com achieved this magnitude of results by committing to deeper customer engagement through a disciplined 3 step CRM process.

New Book Release: Voice Of The Customer Marketing
"This is the definitive playbook for this new customer-driven era."
—Frank Eliason
Senior Director, National Customer Operations, Comcast
"Thank you, Ernan, for tuning us in to the inner voice of our customers! A deep understanding of our customers' needs and preferences is essential for our future growth."
—Karen Galley
President, Patient News Publishing