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Knowledge Creation Laboratory by CRM(xRM)

[Series | CRM 4.0 #01] The day retail will change from "selling" to "resonating" - What is CRM strategy in the era of customer co-creation?

Hello everyone.
We recently announced "CRM 4.0 (Creative CRM)," and in this series we would like to explain how CRM 4.0 will bring about change in various industries and sectors.

The value of "meaning" is questioned in an era when things don't sell

In an age of material surplus, customers choose products based on "meaning" rather than "specs."
Now that it has become difficult to differentiate through convenience or price, retailers are being asked to demonstrate the "power of resonance" that makes customers feel "I empathize with this brand" or "This brand aligns with my values."

CRM 4.0 (Creative CRM) is a management strategy to adapt to these times.

The evolution of CRM and its impact on retail

EMOROCO has emerged as a solution to support CRM 3.0.
With CRM 4.0, it is necessary to use EMOROCO's personalization functions as a foundation to design "deep psychology of customers," "fostering empathy," and "maintaining relationships."

CRM 4.0 Use Cases for Retail

1. Strengthening recommendations based on customer psychology

・Recommend optimal products based on the customer's "personality," "mood," and "behavioral patterns"
 Example: Even with the same "white shirt," the proposal content changes depending on whether you are looking for simplicity or trendiness.

・Recommendations delivered based on mood changes (weather, time of day, season, etc.)
 Example: An email recommending comfortable clothing for people who tend to feel down on rainy days

2. Improved customer service by store staff

・When customers visit the store, they can use their smartphones to check their personality, preferences, and purchasing trends while serving them
 For example, for customers who are registered as "happy when praised," we suggest natural praise.

・Staff members can immediately grasp previous purchases and inquiry history
 Example: "I have a top that matches the skirt I bought the other day."

3. Evolution of the membership system (from "loyal customers" to "resonant customers")

・In addition to purchase amount and frequency, brand communication and reviews posted on social media are also evaluated.

・Build a system that allows "people who empathize with the brand's ideas" to naturally spread the word
 Example: Customers who empathize with the brand philosophy act as "storytellers" to mass-produce UGC

4. Emotion-driven communication design

- Special suggestions for emotional occasions like birthdays and anniversaries

- "Apologies + sympathetic suggestions" based on past complaint handling and satisfaction history

5. Brand design based on worldview and customer psychology

- Classify people who resonate with values such as ethical, sustainable, and local production and consumption

・Creating fans who empathize not only with the product but also with the brand's way of life itself
 Example: Posting a development story video on a product page made from sustainable materials

6. Integrating store, e-commerce, and social media behavioral data

- Overall analysis combining customer service information at physical stores and e-commerce browsing history

・Track each customer as a "single story" and make proposals across channels

7. Policy evaluation and improvement based on qualitative data

・Analyze emotions and behavioral patterns to find out "Why did it sell? Why did it drop out?"

・Implementing the PDCA cycle for customer service, sales promotion, and UX based on the customer's psychological reactions

EMOROCO's role as a technology platform

Management benefits of implementing CRM 4.0 (quantitative/qualitative)

◆Quantitative benefits (example)

・Customer repeat rate: Average increase of 1.5 to 2 times

・New customer acquisition cost: 10-20% reduction

・Integrating stores and e-commerce to improve efficiency by tens of millions of yen per year

◆Qualitative benefits (examples)

・Clarifying the brand image and creating fans

・Qualitative change in customer contact points (from "sales" to "resonant experience")

・Improve employee motivation to serve customers (visualize customer understanding)

Summary: We are moving towards an era where we provide "reasons to support" rather than "reasons to buy."

CRM 4.0 is more than just a tool.A philosophical framework for connecting companies and customers through meaning.
For retailers,Rather than selling products, we aim to increase the number of people who live the brand.This will be a source of competitiveness.

Next notice

In our next post, we will be covering "CRM 4.0: How Manufacturing Will Change the Industry - From After-Sales Service to Co-Creation Partnerships."
How will the shift from technology-led to customer co-creation change manufacturers? We'll explain with use cases.

Person who wrote this article
Yuki Kawachi

He began his career as a systems engineer/system architect at a major Japanese system integrator, focusing on Microsoft products. He has been involved in CRM since the days of Dynamics CRM 4.0, manually implementing, launching, and developing CRM products in a variety of business areas, including sales, support, and marketing. He is particularly skilled in business design and implementation support in the SFA and call center fields. He then moved to a system integrator with no CRM experience and was involved in launching a CRM business from scratch. He is responsible not only for engineering but also for pre-sales. He has extensive experience in performance tuning and revitalizing troubled CRM projects for multiple companies, and is well-versed in both implementation and operation. In recent years, he has worked on the overall design and construction of CRM-focused data utilization platforms, utilizing Dynamics 365 and Power Platform, including non-coding business requirements fulfillment and integration with other systems and BI integration using ASTERIA Warp and other tools. He supports clients in their digital transformation efforts by providing consistent support, from post-implementation BI support to operational establishment. Currently, he is promoting the stage model of corporate transformation through CRM 1.0 to 4.0 that our company advocates, and is leading the spread of CRM 4.0, which realizes "a co-creation relationship that goes beyond trust with customers." He comprehensively provides consulting, system implementation, operational support, and education, and helps companies improve their CRM maturity.

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