Why consumers are souring on CRM

leave.me.alone.We just concluded some research for a client concerning CRM programs and much to our surprise we found that consumers are not happy with brand CRM programs.  It seems that most of brands just don’t understand that CRM is not a broadcast platform.

The research was qualitative and verified by quantitative later on (n=655).  The primary reason that consumers are opting out of brand CRM programs are:

1ne: Too much communication – too many emails has led to most being discarded before they’re opened.

2wo: No Value – Conducting a CRM program that informs people of a new flavor of pizza while also promotion via offline is considered bothersome by consumers.

no-values

3hree: No personalization – One CRM message does not work for all your customers.  You need to segment and resegment your audience to deliver relevant messages.

In qualitative research, we heard that some of consumers favorite brands “leave them alone” and that they don’t want a relationship beyond buying and using the product.  One person, for example, just purchased a Hyundai and since registering online has been overwhelmed with eMails and phone calls to either add products or extend her warranty.  She said “I just leased the car and don’t want anything else unless they are going to offer me discounts on scheduled service”.

Implications

screenshot_99CRM is not dead, but in order for your CRM program(s) to be effective you need to see them through your customers eyes.  What you have to say is more important than frequency of communication and should not be said to all your customers.  Continuous optimization is essential for success.