Get the most out of your CRM…
Many of my clients have invested in expensive Customer Relationship Management (CRM) systems for their tech stack but haven't taken the time to learn how these systems work to maximize their return on investment. Instead of using the CRMs as intended, many are simply using them as glorified spreadsheets with macros. However, these systems are designed to respond to the actions or inactions of prospects in any of our outreach methods, such as call centers, emails, SMS texts, or direct mail. CRMs can be programmed to automatically react based on the prospect's behavior at each touch point.
Sequences, also known as journeys, are a series of automated actions or tasks triggered by specific conditions or events. They are designed to streamline and automate various sales and marketing processes, ensuring consistent and timely follow-up with leads, prospects, and customers. Typical sequences that can be found in pre-programmed templates in most CRMs are:
Lead Nurturing Sequences: These sequences are designed to nurture and qualify leads by sending them a series of targeted emails, tasks, or other activities based on their behavior or stage in the sales funnel. The goal is to provide relevant information, build trust, and move leads closer to becoming sales ready.
Sales Follow-up Sequences: These sequences automate the follow-up process with prospects after initial contact or a specific event, such as a demo or meeting. They can include a combination of emails, phone calls, tasks, and other activities to keep the sales process moving forward and prevent leads from going cold.
Onboarding Sequences: These sequences are used to welcome and guide new customers through the onboarding process. They can include emails with product information, training resources, and tasks for the customer success team to ensure a smooth transition and adoption of the product or service.
Renewal Sequences: These sequences are designed to remind existing customers about upcoming contract renewals or subscription expirations. They can include a series of emails, tasks, and other activities to encourage customers to renew and retain their business.
Re-engagement Sequences: These sequences target inactive or dormant customers or leads with the goal of re-engaging them and reviving their interest in the product or service. They can include special offers, updates, or personalized outreach to re-establish communication and potentially reactivate the relationship.
Understanding how your CRM works and planning your response to a prospect's behavior is crucial for getting the most out of it. By pre-planning your next steps, you can effectively nurture prospects into customers, whether they have already engaged or not.
A decision tree is a graphical representation shaped like a tree, starting with a decision or query. It consists of predefined reactions to questions and answers. The tree follows a sequence where the initial node presents the query, leading to potential responses. It then branches into sub-nodes with their respective answers, and terminates when the solution is found or cannot be further broken down.
Here are some simple steps for building your decision tree.
1. Define Your Objective
Start by clearly defining the main objective of your CRM campaign. This will be the root of your decision tree. For example, the objective could be to increase customer engagement or to convert leads into sales.
2. Identify Key Decision Points
Identify the key decision points that will influence the outcome of your campaign. These could include customer demographics, past purchase behavior, engagement levels, and response to previous campaigns.
3. Gather Data
Collect relevant data that will inform your decision points. This data can include customer profiles, purchase history, engagement metrics, and any other relevant information.
4. Create the Root Node
The root node represents the main objective of your decision tree. For example:
Root Node: Increase Customer Engagement
5. Add Decision Nodes
From the root node, add decision nodes that represent the key decision points. Each decision node should branch out based on outcomes. Note that the content must be ready to go to market, whether it is an email, text, or a call center script that has been reviewed, approved, and ready to be deployed. Continuing with our example of Increasing Customer Engagement our growing decision tree shows the following:
Root Node: Increase Customer Engagement
Decision Node: Customer Engagement Level
High, Neutral, Low Engagement
6. Add Branches and Leaf Nodes
For each decision node, add branches that represent the possible actions or outcomes. Leaf nodes represent the final outcomes or actions to be taken. For example:
Root Node: Increase Customer Engagement
Decision Node: Customer Engagement Level
High Engagement
Action: Send Loyalty Rewards
Action: Offer Exclusive Discounts
Low Engagement
Action: Send Re-engagement Email
Action: Offer Free Trial
7. Evaluate and Optimize
Evaluate the effectiveness of each branch and leaf node by analyzing the outcomes. Data can be used to optimize the decision tree by adjusting the branches and actions based on performance metrics.
Here is our simplified example of a decision tree for a CRM campaign aimed at increasing customer engagement:
Root Node: Increase Customer Engagement
Decision Node: Customer Engagement Level
High Engagement
Action: Send Loyalty Rewards
Action: Offer Exclusive Discounts
Low Engagement
Decision Node: Last Purchase Date
Recent Purchase
Action: Send Thank You Email
Action: Offer Referral Bonus
No Recent Purchase
Action: Send Re-engagement Email
Action: Offer Free Trial
Tools and Best Practices
Tools: Use tools like Segwik, Venngage, or Yonyx to create and visualize your decision tree. These tools offer templates and user-friendly interfaces to simplify the process.
Best Practices: Keep the decision tree simple and easy to understand. Use clear and concise language for decision points and actions. Regularly update the decision tree based on performance data to ensure it remains effective.
By automating these processes, sequences help sales and marketing teams save time, ensure consistent follow-up, and provide a more personalized and relevant experience for leads and customers throughout their journey. The key benefits of using decision trees for CRM optimization include their ability to manage complex data, provide interpretable insights, and enable precise targeting of campaigns. Their visual representation also facilitates understanding of customer behaviors across the marketing team. By following these steps and utilizing the right tools, you can create an effective decision tree to plan sequences in your CRM campaign, ultimately improving customer engagement and conversion rates.
