Hello, this is Matsubara, CRM Evangelist.

At Arcus Japan, we prioritize our relationships with existing customers, in line with the principles of CRM (Customer Relationship Management).
The longer the relationship, the more attentive support we provide.
—This is not merely an expression of gratitude, but also an embodiment of the CRM 4.0 theory itself as part of our company's stance.

This time, I will summarize the background of this idea and how EMOROCO CRM Lite can be useful.

A certain bias that Japanese companies face

One thing I've noticed about many Japanese companies is that they tend to invest huge budgets in acquiring new customers through advertising and promotions, while neglecting to serve existing customers.
While the number of new customers acquired is easily treated as a clear "result" that can be reported in management meetings, the deepening of relationships with existing customers is difficult to measure and therefore less likely to be evaluated.

However, in the world of marketing, there is a well-known principle called the "1:5 rule."
The cost of acquiring new customers is five times higher than the cost of retaining existing customers.
There's also the "5:25 rule"—the principle that simply improving customer churn rate by 5% can improve profits by at least 25%.

Source: Synergy Marketing Co., Ltd. "The 1:5 Rule", NTT East Japan "The 1:5 Rule" (Original source: Bain & Company)

Why are existing customers being neglected?

The reason is clear.
Acquiring new customers presents a clear, one-to-one correlation between the "invested cost" of advertising and the "result" of the number of acquisitions.
On the other hand, strengthening relationships with existing customers is difficult to perceive because the results manifest as preventing customer churn, which is something that "didn't happen."

I believe this structure, where results are difficult to see, is the fundamental reason why investment in supporting existing customers is put on the back burner.

The values ​​that Arcus Japan cherishes

At Arcus Japan, we go against this structure by prioritizing our relationships with existing customers.
The longer the transaction period, the more comprehensive the support we provide.
This reflects our commitment to embodying the "One with One Marketing" concept advocated by CRM 4.0—that is, the idea of ​​building relationships together with customers—in our actual business operations.

We view each customer not as just another transaction, but as a building block of relationships.
This attitude is not just an empty ideology; it only becomes meaningful when it is put into practice in daily interactions.

The practical meaning of "paying close attention to each individual"

The phrase, "Let's cherish our existing customers," is a common message among many companies.
However, relying solely on the memory and goodwill of individual staff members to keep track of each customer's situation becomes increasingly difficult as the organization grows.

"It was about time to renew our contract with this customer."
"I feel like the frequency of inquiries has decreased recently."
"Since the person in charge changed, I wonder if our relationship has become weaker?"

We need a system that allows us to continuously grasp these insights as an organization, rather than relying solely on individual intuition.
This is where EMOROCO CRM Lite comes in.

How EMOROCO CRM Lite supports your approach to existing customers

Systematize responses based on the length of the relationship.
The transaction start date and contract duration are managed as fields.　Using this feature, you can incorporate a system that automatically prompts customers in their third year of business to make special follow-up contacts, tailoring your response to the length of your relationship.
Instead of relying solely on a few exceptionally attentive individuals, we can provide consistent and comprehensive support throughout the entire organization.

Early detection of changes in relationships
A two-axis matrix of nurturing score and emotional temperature.Using this tool, you can detect changes early on, such as "Recently, the response rate in behavioral data has decreased" or "The level of enthusiasm felt by the person in charge has decreased."
Churn forecastThis is a mechanism to anticipate and capture these changes.

Don't overlook the true evaluation of the customers themselves.
Using NPS, you can collect honest evaluations from customers themselves that cannot be seen through behavioral data or on-site observations alone.
This allows you to avoid the assumption that "they must be satisfied because they've continued using our service," and instead listen to their true voices.

This can be used as a basis for reviewing the budget allocation for acquiring new customers.
If we can compare the recurring revenue from existing customers with the costs incurred in acquiring new customers based on the data accumulated in the CRM,Factors that management uses when making investment decisionsApplication
As the 1:5 rule indicates, the return on investment in existing customers tends to be higher than that of acquiring new customers.

Transforming "thorough support" from an intuitive feeling into a system.

Many companies likely have a policy of providing attentive service to long-standing customers.
However, as long as it depends on the discretion and memory of the individual in charge, that level of attentiveness will be lost the moment the person in charge changes.

The length of the relationship and changes in the situation are accumulated as data in the CRM, creating a system where anyone can provide the same level of service regardless of who is in charge.
This forms the foundation for sustaining the principle of "cherishing" through actual actions.

Summary

The tendency of Japanese companies to invest heavily in acquiring new customers while neglecting existing ones is not necessarily rational, as the 1:5 rule suggests.
Arcus Japan goes against this structure, implementing a policy of providing more attentive support the longer the relationship lasts, based on the theory of CRM 4.0.
EMOROCO CRM Lite is the foundation for sustaining this approach of "paying close attention to each individual" not as a matter of personal goodwill, but as an organizational system.

EMOROCO CRM Lite costs ¥1,500 per user per month (minimum 3 users) and has no initial setup fee, with a 30-day free trial.https://www.emoroco.com/You can start from there.
IT implementation subsidy eligible tool number: DL07-0022934.

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Additionally, we publish useful articles about CRM 4.0 on note ( https://note.com/arcuss_crm ), so please check them out as well.

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