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Building a CRM using Opt-In Permission based emailViews: 1342
Dec 23, 2006 4:14 amBuilding a CRM using Opt-In Permission based email#

Matthew Roblee
Customer Relationship Marketing (CRM) is about maximizing long-term profitability through the intelligent use of information. The information is used to enhance and to create superior relationships with customers.


Relationship marketing, to my mind, involves customizing and developing the offer that you make. As a result, you also develop your dialogue with the client to maximize the value to them. It is more sophisticated than the traditional marketing process; it makes customers feel valued because it responds to their individual circumstances - in effect, it is marketing with a memory.

The key phrases associated with relationship marketing are:
* Customer life-time value - looking at income, cost and profit over the full period of the relationship rather than just on annual basis

* Data-warehousing - the collection together into one place of information from many places

* Data-mining - the process of searching for nuggets of valuable information that can provide ideas for enhancing value or for extraordinarily persuasive communications


1. What are the drivers in the market? Can you deliver increased competitive advantage by creating higher levels of loyalty?
2. How many customers does the business have? Is it clear what a customer is?
3. What is the retention level? If extremely good, it makes relationships marketing less compelling.
4. Do customers buy from more than one supplier? Do they have to? How good is our 'share of the customer'? How will RM improve it?
5. Do we have the IT/marketing/accounting skills to run a more than competent RM program?
6. Do we have the money to invest in the program?
7. Do we have the right data? Where can we get it from?
8. Are we already doing a good job for the customer? Can we also improve on this?
9. Does the company have a customer ethos that will maintain and sustain any improvements?
10. Are our existing campaigns well-executed?


Customer life-time value is at the heart of relationship marketing. Data-warehousing and data-mining are the tools used in bigger businesses.

In traditional marketing each client is valued on a year-by-year basis, focusing of profit per annum. This approach created a gap between the measurement system and the real world. In the real world it may take some time to make a customer profitable. Remember, customers do not stop and start with the financial year. It may take several years for your investment in a relationship to pay-off.

Customer life-time value is a way of considering the customer across their anticipated life as a customer of the company. It acknowledges that the investment a company makes in acquiring a new customer would probably not be repaid with the first purchase or even the first year of purchases!
# LIFETIME VALUE OF A CUSTOMER CALCULATOR On average, a new customer will buy from the business for ____ years.
# And, on average, a new customer will generate ___ orders per year.
# The average order value is $___.

So, Lifetime Income from a new customer is:
# ___ years x ___ orders pa x $___ order value = $___.
Therefore, with an average Gross Margin of ___%,
# A new customer will generate a Lifetime Gross margin of $___.


Until you know what a potential client might be worth to you, you cannot accurately decide how much you spend trying to acquire them. You can start a CRM marketing campaign today and see an immediate response rate from the first week. If you would like more information on how to build a CRM using 100% Opt-In Permission based email, feel free to let me know.

Private Reply to Matthew Roblee

Dec 25, 2006 7:20 amre: Building a CRM using Opt-In Permission based email#

Lamar Morgan 954-603-7901


There are quite a lot of CRM software programs available. Which one do you prefer? I like !ntellect. It has its own email marketing program and at the same time can link all my computer programs through a single computer screen window. I also like the way its database merges with my word processor and email program. With the Adress Swiper add-on, I am able to easily go online and collect addresses for prospecting purposes.

Which CRM program do you use and why?

Lamar Morgan
Attract more customers!

Private Reply to Lamar Morgan 954-603-7901

Dec 27, 2006 8:46 amre: Building a CRM using Opt-In Permission based email#

Anshul Dhingra
Can you actually build CRM using Opt-in Permission Based Email?

I beg to differ. One can only track responses to few campaigns on few / some parameters. For CRM, you need to go much beyond that.

Please show us some color how you plan to do so.



Private Reply to Anshul Dhingra

Dec 27, 2006 2:37 pmre: Building a CRM using Opt-In Permission based email#

Kurt Schweitzer
I always thought Relationship Marketing was about marketing to your customers as individuals - addressing their individual needs, wants, and preferences - as opposed to grouping them and treating them as "targets". Isn't it about putting the customer first, so that even if she doesn't buy from you, she thinks highly enough about you that she will recommend you to her friends?

This is something that small businesses can do BETTER than large ones, because every contact with each customer will be done by the same person. You will get to know them, and they you, so that fancy database tools aren't necessary.

It's only when the the customer base becomes large enough that you wind up needing tools like CRM systems to help you remember who each customer is. CRM systems are also helpful in communicating customer information among your staff, so that as your business grows it can still maintain that "personal touch".

So if I'm a small business with a small (miniscule?) customer base, why do I need to spend money on a CRM system?

Kurt Schweitzer

Private Reply to Kurt Schweitzer

Jan 02, 2007 4:35 amre: re: Building a CRM using Opt-In Permission based email#

Lamar Morgan 954-603-7901


I agree with all your comments regarding relationship marketing for a small business - except your conclusion. The reason a CRM program can be extremely valuable is because it allows you to maintain that "personal touch" easily and efficiently with both your customer base and your prospects.

CRM stands for Customer Relations Management. I can only speak for the CRM program I use, !ntellect. This software helps me organize my overall desktop. I can manage everything involving my business through a single window on my computer screen. I can efficiently link emails, documents, databases, spreadsheets, contact information, etc. to clients and prospects. What's more, I can even download the CRM program to my thumb drive and carry it with me wherever I go. It really is a wonderful tool.

Think of a CRM program like you would a cell phone. You can probably make it through your day without a cell phone. But, once you get accustomed to having a cell phone, do you really want to go through your day without it? Sometimes what initially appears to be a convenience turns into a necessity through constant use. That is how I feel about the CRM program I use - !ntellect.

Lamar Morgan
Attract more customers!

Private Reply to Lamar Morgan 954-603-7901

Jan 02, 2007 4:11 pmre: Building a CRM using Opt-In Permission based email#

k kemper
I did not see one word about "opening the horse's mouth
and counting"; asking the customer.

IT is a tool only.

AND customer's needs change.

Private Reply to k kemper

Jan 07, 2007 7:06 amre: re: Building a CRM using Opt-In Permission based email#

Lamar Morgan 954-603-7901

My motivation for using a CRM software program is not simply to better service my customer base, but to increase my audience, which hopefully results in more customers. The CRM program I use helps me better organize my desktop and conduct permission-based email marketing campaigns. It is NOT a "magic bullet" for more customers. But, I do believe it is a very useful tool for marketing one's business.

Lamar Morgan
Attract more customers!

Private Reply to Lamar Morgan 954-603-7901

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