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5 steps to Higher revenue with Luxury CRM


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5 Steps For Higher Revenues With Luxury CRM
A Guide for Luxury CEOs

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5 steps to Higher revenue with Luxury CRM

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  2. 2. 
 5 Steps For Higher Revenues With Luxury CRM A Guide for Luxury CEOs OMNISTREAM June 2014 ©2014 OMNISTREAM. All rights reserved.
  3. 3. 2014 Will be a Defining Year for Luxury Brands. Training and staff retention has always been an issue for luxury retailers, particularly in emerging markets without a history of luxury service. With increasing competition and rapidly shifting consumer expectations, luxury brands will face an uphill battle creating outstanding customer experiences. Sales professionals can be the single greatest expense for retailers, yet their engagement is rarely up to their true potential. Sales professionals are often trained to nurture long term customer relationships, yet few are incentivized, or offered effective tools to help them do so. As a result, frontline sales professionals often treat customers as transactions, leading to low customer retention rates and high idle floor time. Marketing and advertising have received the lion’s share of luxury budgets over the past years, yet the moment of truth for a customer is face-to-face. Creating CRM practices that work for frontline staff should be a top priority for luxury executives in 2014. OMNISTREAM ©2014 OMNISTREAM. All rights reserved.
  4. 4. 1. Mobile CRM. Keep sales people on the sales floor Luxury brands are often equipped with legacy CRM like Sage or SAP. These CRMs are great as databases, but lack extensions required to provide a mobile salesperson with the workflow to engage customers respectfully and intelligently outside of the store. As a result, top sales professionals often opt to keep customer data in their own blackbooks. They are simply not desktop workers. It is too costly in time and opportunity cost for them to leave the floor to enter data into a CRM. As a result many customers are not being properly serviced, nor do they receive the 1-to-1 personalized treatment that is synonymous with luxury. Worst yet, many customers remain hidden from the brand, with their data disappearing when the employee leaves. Empower your frontline staff with an outstanding mobile CRM, designed to simplify relationship building. This will have a substantial impact on your top line revenue. OMNISTREAM ©2014 OMNISTREAM. All rights reserved.
  5. 5. 2. In an Omnichannel world, multiple sales professionals (and channels) service top customers. Assign clear communication boundaries in your CRM. One of the biggest complaints from highest spending luxury consumers (top 5%) is that they receive too many calls and messages from sales professionals. Simultaneously, slightly lower spending consumers (5-20% of top spending) feel like they do not receive enough personal treatment. This is primarily caused by un-synchronized relationship tracking. Sales professionals do not know who “owns” a specific relationship, nor do they know whether a specific customer has already been contacted recently. The top 20% of your customers probably bring you 80% of your revenue. Sales associates should be cultivating a human relationship with these customers. Empower sales associates to generate their own messages to these customers, while maintaining clear boundaries on ownership and frequency. You will see that open rates soar above 50%, with response rates and repeat visits increasing accordingly. A well designed luxury CRM should cater to these requirements. OMNISTREAM ©2014 OMNISTREAM. All rights reserved.
  6. 6. 3. Keep employees engaged. Gamification and gratitude CRM is as much about aligning your employees as it is about aligning your customers. No brand will be able to deliver outstanding experiences without engaged employees. Frontline sales professionals often feel isolated from headquarters, both in terms of decision making process and in terms of incentives. An effective CRM should not focus solely on touchpoints entered. “An engaging CRM should serve as ongoing training, provide feedback based on key performance metrics, and provide clear benefits for the sales professional.” For example, some forward thinking brands have started offering incentives for professionals to enter data into a CRM. However, results are not up to expectations because the software used is outdated and stressful to use. See SILK CRM extension by Omnistream Co to visualize how gamification layers can be added on top of traditional CRM software to increase usage by 200%. OMNISTREAM ©2014 OMNISTREAM. All rights reserved.
  7. 7. 4. Travel Retail is a core part of your CRM strategy Chinese tourists are notorious for their global shopping habits. Many of these tourists are both omnichannel, and omnilocation customers. Brands should ensure that sales professionals are tracking tourist touchpoints even as they shop abroad. These relationships should also be assigned back to their sales professional at home. Forward thinking brands should also consider compensating home sales professionals for “assists” made on sales abroad. A full function CRM should make this compensation structure easy to implement. Clear assignment of customer relationships is particularly important in the luxury watch or diamond sector, where many Asian tourists travel for purchase. They will require reminders on maintenance from their home sales professionals. Note that maintenance satisfaction is one of the key drivers of customer referrals. OMNISTREAM ©2014 OMNISTREAM. All rights reserved.
  8. 8. 5. Reassign customer relationships when employees leave One of the top frustrations among luxury consumers is that when their favorite sales professionals depart, they often feel like their relationship with the brand has also been severed. The reality is that employee churn is high at any luxury brand. It is essential that customers are immediately reassigned to new sales professionals when existing employees depart. Top customers accustomed to personalized service should receive messages from their new professional, reassuring them that their relationship is still valued. These 5 simple but powerful CRM strategies will transform your organization. Effective CRM is not about technology or the database. It is about creating solutions that are designed to enhance the luxury experience. Contact us at Omnistream to explore how our CRM extension helps luxury brands enhance their CRM performance. OMNISTREAM ©2014 OMNISTREAM. All rights reserved.