Upgrade your customers’ ranking with ‘‘CRM’’

What is CRM?

We would like to propose a management method called CRM as a method to nurture new customers to repeat customers. CRM stands for Customer Relationship Management. It makes encounters with new customers, and gradually deepens relationships with them to be repeat customers.

CRM is a medium and long term ongoing activity that does not show significant results as soon as it starts. But it contributes to generate repeat customers by continuing, and these repeat customers can be your strength which your competitors don’t have.


CRM contributes to stable sales and growing while reducing the cost of mass-target marketing activities such as traditional advertisements, promotions, discounts, dealer incentives etc.


The difference between mass marketing and CRM

Please review your current marketing activities. Do you spend money and efforts on the initial part of consumer purchasing behavior only?As mentioned earlier, repeat customers (= high LTV customers) bring many benefits over the long term, but does your current marketing activities contribute to generate repeat customers? We guess many companies understand the importance of repeat customers but no idea how to obtain them.



Of course, the red wordings above contribute in terms of "purchase" as a stand-alone action. However, these do not contribute to the long term accumulation of purchases.



Tips on importance of repeat customers

[1/5 rule]
This principle mentions, selling a product to a new customer needs five times of the cost compare with an existing customer. That is why maintaining existing customers is more important than acquiring new customers. However, new customers are also important for future, so it is important to take a good balance for obtaining new customers and maintaining existing customers during CRM.

[5/25 rule]
This principle mentions, if you improve 5% of customer churn, your profit will be improved 25%. From a point of medium to long term strategy, it is important to implement well-planned CRM activities with consideration of the balance between customer retention and acquisition of new customers.

A new customer go through few steps to become a high loyal customer. To support this steps, it is necessary to segment customers by their situations/preferences/behaviors, and send different message to each segmented customers (=“optimized communication”) rathe than send same message to all customers without segmentation. It contribute to maximize customer satisfaction level and as a result, you will obtain loyal customers.