In October 2015, Taobao waiter came to share in detail the issues related to CRM management with merchants during the night talk session of the regular meeting of Laogao Crown Club. Yelai is a user research expert in Taobao User Experience Decision Center. He has six years of user research experience in Taobao. He has long communicated with consumers and merchants, has in-depth insight into consumer decision-making processes, understands merchant business problems, and promotes Taobao business to solve user pain points.
The following is a selection of full texts:
What I want to talk about today is CRM in the e-commerce system. Some people asked me how to do CRM? I want to talk about customer relationship management. What first comes to mind when talking about CRM? What are the usual practices? The idea of always watching is to send text messages. So what else can the WeChat group do? So today I will talk about these contents. What else can they do?
What I want to talk about today may be divided into three aspects.
The first aspect is why do old customers need to maintain them? It seems very simple to say. Everyone has realized this before, but how important is this matter? Let’s see what level we are now? You can take a look at it accordingly.
The second content is called CRM not linear, but a system. We summarized his approach into a complete system, and we can see which dimensions we can do CRM in all aspects.
The third one is also an environment corresponding to the entire Taobao and Alibaba. We always say that we should encourage everyone to do more original brands. We often say that the trend of wireless is already very obvious, and most traffic may tend to be wireless. So in these aspects, what else can be done with our new tools online? Is there anything that can be used? How to link these trends? I will share these contents with you today.
Why do CRM?
So at the beginning, I want to share with you why you need to do CRM?
First of all, we can find that Lao Xiao made a very prominent interpretation of the current e-commerce trends. How should we shape our own brand and how to better express our personality? How to establish more contact with old customers and manage customers well? How to meet some of your customers’ needs to truly do a good job in such an e-commerce?
The second problem is that everyone is more concerned. As early as many years ago, the store had some money to open a direct train and was proficient in some marketing methods. The traffic soon came in. I have also contacted some seller customers before, and I asked him why he did this? Every day, traffic comes in and new customers come in. Anyway, if these people buy them, I don’t care whether they will come next time. But now it’s different. I go to contact the store every year and ask everyone how you feel every year. Everyone basically says that the traffic is getting more and more expensive, and the cost is getting higher and higher, which is a bit unbearable, but the input-output ratio is very different now. In fact, it is much lower for us to be an old customer than to attract a new customer. The income from an old customer may be greater than the business of a new customer. The effect of the express train is related to the traffic mechanism. You may find that the express train may not be particularly effective. From the perspective of investment, I would also like to tell you that Taobao’s user base is particularly large in the entire China. Many of us are buying things through Taobao and Tmall. For the entire environment, it is already very difficult for Taobao to have more traffic, so our plate growth is not as big as before. Our traffic is actually very limited, but the number of our sellers is constantly increasing every year. Every year, many people come here to see if they have such capabilities. So under such circumstances, the cost of traffic allocation may be getting higher and higher. So in this case, how should we make good use of our original old customers? How to utilize the original traffic.
This is what we call the problem of wireless time management. That is to say, the fragmentation of wireless time is actually very favorable for everyone. So many people think about why they want to start a WeChat group, because everyone used to take the initiative to buy things, so they went to Taobao. So it is difficult for us to touch those customers. We may send text messages, but there may not be any response. So now we may go to swipe WeChat or some other products, we can use our time to provide some information to our customers, so that they have more opportunities to contact. When we have more time to communicate with our old customers about our brands, we can make good use of WeChat, or other products and brands like Weibo. We need more customers to do some of these things.
This is what we call the problem of wireless time management. That is to say, the fragmentation of wireless time is actually very favorable for everyone. So many people think about why they want to start a WeChat group, because everyone used to take the initiative to buy things, so they went to Taobao. So it is difficult for us to touch those customers. We may send text messages, but there may not be any response. So now we may go to swipe WeChat or some other products, we can use our time to provide some information to our customers, so that they have more opportunities to contact. When we have more time to communicate with our old customers about our brands, we can make good use of WeChat, or other products and brands like Weibo. We need more customers to do some of these things.
In this era of big data, there are many potential customers. It is really very important. What kind of preferences do your customers want? What kind of people are your customers and what kind of customers we should look for, all of them are in the data. You need to read the traffic data of your stores well, and you should know very clearly how to do it. So under such backgrounds, we must take these things more important. I did not ask everyone to figure out how to manage customer. Some of the data here are accumulated and verified by some large foreign companies. You can take a look at some of these data. 80% of the revenue comes from 20% of old customers. Reducing the churn rate by 5% will increase the profit by 25%. The cost of retaining a new customer is five times that of retaining an old customer. The profitability of an old customer is 15 times that of a new customer. A loyal old customer can influence 25 consumers and motivate eight potential customers to generate purchasing motivation. For old customers, their consumption is actually more loyal. These customers are actually not willing to move into this nest. As long as your store does not have too many problems and she is willing to stick to it, everyone can make good use of these. How should customers with high consumption make use of it?
Ladder sellers and small sellers focus on traffic, easy operation, and more timely navigation within Taobao. All customers are very important customers. Because the traffic itself is very limited, it is not easy for people who come to buy it. Customers converted from money are very important. Let’s take a look at the big sellers, who focus on the effectiveness of participating in precise marketing activities. The third point is to pay attention to competitors. The fourth point is to pay attention to external contacts. From these points we can clearly find that our understanding of this issue is different.
How to evaluate CRM effectiveness?
I think the most important thing is to evaluate whether the things you do are effective. Data is often the most likely link to be missing.
First of all, we need to look at the perception layer. As I mentioned earlier, everyone is members and has a lot of membership points. Why do some store membership cards make you feel like you have a sense of belonging and loyalty? It is because you have also established good experience standards on various nodes where the seller contacts. So you will feel that if I become their membership, I will enjoy unexpected discounts. Many times, our buyers often have no special concepts after buying them a few times, and they will not care whether I want a member of the store.
What are the rights and interests of your members to fully realize? You can remind her what level she is now and what kind of service she can enjoy. She told her that this period has exceeded that of ordinary customers. Because you are my member, you want to talk about this right, instead of just giving me a discount for you casually. Including after-sales service, we can make some unexpected surprises, personalized packages, and personalized treatments, which will look a little more considerate to customers' demands. These can make your customers feel more clearly that I am indeed a member of this store. I can feel that this store is dedicated to being a member and managing these members. This is the scene of perception.
The second is layering. This has something to do with data. You need to establish a customer value system and build personalized and refined customer stratification that is combined with store operation strategies. You can divide it by one dimension, customer attribute dimension, basic RFM model, and management hierarchical model.
The third is rights and interests. It is necessary to provide refined customer stratification, matching stores, and personalization, and also have VIP exclusive channels, old and new mechanisms, customer lift system, and store points consumption. Only then can you truly understand such a part of the customer's perception.
The last one is evaluation. We can focus on the analysis of management effectiveness through evaluation and data. You can focus on refund rates, repurchase rates, customer development costs, price sensitivity, customer retention, and customer wake-up rates.
CRM in the e-commerce ecosystem is nonlinear and systematic. To make such a connection between buyers and sellers, it may have been mainly computer-oriented and now it may expand to the mobile field. It is also very important for the entire Internet industry.
New ways to play brand CRM
The data and data are more accurately assigned. This will bring him some new information. At the data level, this will be a very important trend in the future, so in giving you some big information, each member’s information and channel links will appear later. Including you doing member management and order management for delivery, there is a complete set of backend customer management. What kind of customers come in, what kind of data you leave, and what kind of people you provide, a complete set can be managed through data. So more data can be used to make China Unicom, and then there is equity. Now Alibaba and Taobao can provide you with more ways to choose rights. In the past, it might be just discounts or some discounted coupons, so now we may provide some traffic packages, which are small discounted traffic methods, cash red envelopes or store red envelopes, various forms, and then there is the channel. In the past, we probably relied on text messages. Later, with Weibo and WeChat, there may be more ways now, including message boxes, card volumes, and membership cards.
Wireless CRM reach and retention
Taobao includes Taobao, Weibo, Wangxin, and Alipay. Now we have some exclusive mobile phone prices, wireless coupons, short links, treasure chests and fission tools. This may not be suitable for all stores, but its cost is not high. We might as well choose some tools to try it out. If you cooperate with the analysis of such data, it will be effective for your store. We can continue to use it, but the cost is not high. We can change other methods and encourage everyone to try more. Nowadays, tools are becoming more and more simplified and simpler. We still have some posters and have made some simple templates for everyone. In other words, you can get started quickly without learning. Just click twice to operate. Everyone can try it out, or try it out in the operation to see if it is effective.
CRM during the big sale. Before Double Eleven, it was a recall from old customers, and between Double Eleven and Double Twelve, it was after-sales service and data analysis. After Double 12, after-sales service data analysis and member precipitation. I have feedback a lot of information from many users. They say that there are many things to pay attention to. If you just promote some discount information, you will have very little interaction with your customers, and there are various interaction methods. I have come into contact with some sellers, and may vote on WeChat. The vote is about new and new styles, which will make you guess which style will sell the best next month. In fact, it is very likely to help you evaluate the later one that will sell well and how to prepare inventory. On the other hand, it is also a form of interaction to stimulate users to participate, so it is more often in content management.
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