Making Billing Part of Your Overall CRM Strategy

Posted on by Beth Negus Viveiros

Consumers are keeping pace with developing technology and are becoming more sophisticated in their expectations of customer service and how they purchase goods. But companies haven’t necessarily kept pace.

Industry research indicates that an average of 85% of marketing budget is spent on acquiring customers rather than keeping them. An unbalanced strategy, if you think about it. When you compare cost of acquisition spend to cost of attention spend, it is clear that there is more value in keeping and up-selling your loyal customers who already spend money with you. Repeat customers spend, on average, 67% more and extending the duration of your customer relationship can raise profits by 25 to 100%.

How can your company expand relationships with existing customers? One way to reduce customer churn is to tune into the customers’ buying preferences and behaviors. If you see a customer has paid late three times, they could be flagged as a potential churn risk. With this kind of data on hand, a marketer can reach out and take action before the customer leaves.

Leveraging Consumer Purchasing Behavior Data

The role of billing within organizations is no longer just invoicing and accounts receivable, it's impacting every aspect of the business, including the marketing department. Marketers can use billing data to tap into a gold mine of customer buying preferences and behaviors, allowing you to identify and respond to emerging customer trends and trigger product and service innovation

A billing system that is based on the individual activity of customers provides them with a process that feels tailored to their needs, and allows marketers to be much more informed about the likelihood of any customer to be loyal or flee. A better understanding of customers and their buying behaviors allows companies to tailor offers based on individual preferences.

But it’s not just about customized pricing and process efficiency. Customers are 50% more likely to remain loyal if they purchase an additional service or product during a customer service call, and information from the billing process can be used to encourage that behavior.  For example, if you have knowledge that a customer has frequently purchased a certain product set in the past, your customer service representatives would recognize the opportunity to market complementary products to them

Marketers need to be aware of anything that can potentially impact customers’ perception of the business. If you discount billing as something that's purely the finance department’s responsibility, you are missing out on real-time insight into how customers are actually consuming their goods and services. Ultimately, you are missing an important opportunity to retain—and grow—your customers that are already adding to the bottom line.

Chris Couch is COO of Transverse.

 

More

Get Content Like This Delivered to Your Inbox

Related Posts

Chief Marketer Videos

by admin

Chief Marketer Awards

Fusion Marketing - Gold Velcro Industries - Gold Pringles - Gold Bud Light - Gold Bud Light - Gold Target - Gold Coca-Cola - Gold Coca-Cola - Gold HISTORY - Gold Denny’s - Gold Ford Motor Co. - Gold Cottonelle - Gold Intel Corp. - Gold Intel Corp. - Gold Miller High Life - Gold McDonald’s Corp. - Gold Poland Spring - Gold REI - Gold Game of Thrones - Gold Kingsford Charcoal - Gold Pernod Ricard USA - Gold Breathe Right Nasal Strips - Gold Lincoln Motor Co. - Gold Coca-Cola - Gold Mike’s Hard Lemonade - Gold National Football League - Gold Google Asia Pacific - Gold Piper-Heidsieck - Gold 2014 Show Your Joe Campaign - Gold Nike - Gold Cîroc Ultra Premium Vodka - Gold Kmart - Gold Kmart - Gold Coca-Cola - Gold Cotton Inc. - Gold Nike - Gold Malibu Rum - Gold Hostess Brands LLC - Gold HBO - Gold Prevacid 24HR - Gold Samsung Mobile USA - Gold Cîroc Ultra Premium Vodka - Gold Frito-Lay and PepsiCo - Gold Hewlett Packard Co. - Gold FX Television Network - Gold Captain Morgan - Gold American Express OPEN - Gold HBO - Gold Corona Extra - Gold AT&T - Gold World Vision - Gold Gillette - Gold Pantene - Gold Porsche - Gold Duracell - Gold Corona Extra - Gold Microsoft - Gold Cottonelle - Gold Chicago Shakespeare Theater - Gold HBO - Gold Crown Imports - Gold Samsung Mobile USA - Gold The Clorox Co.
 - Gold Pepsi Co. - Gold Oreck - Gold Jockey International - Gold The Art Institutes - Gold Monster Worldwide, Inc.
 - Gold Pepsi Co.
 - Gold HISTORY - Gold MillerCoors - Gold Time Warner Cable - Gold Frito-Lay - Gold American Express OPEN - Gold AT&T - Gold MillerCoors Foster’s - Gold Microsoft Windows - Gold ConAgra Foods, Inc.
 - Gold Coca-Cola - Gold Nestlé - Gold Ford Motor Co.
 - Gold

Chief Marketer Top Shops

TRCO MARKETING WUNDERMAN VERTICAL MARKETING NETWORK UPSHOT TWO/TEN TRACK MARKETING GROUP TPN TIPTON & MAGLIONE TIC TOC TEAM EPIC TEAM ENTERPRISES TEAM DIGITAL PROMOTIONS THE STRATEGIC AGENCY SWITCH SOURCE MARKETING SOHO EXPERIENTIAL SLANT SCOUT SPORTS & ENTERTAINMENT RYAN PARTNERSHIP RUBIK MARKETING REVOLUTION RE:FUEL AGENCY REDPEG MARKETING RED MOON MARKETING PSE-PACKAGED SPORTS AND ENTERTAINMENT PRO MOTION PRIZELOGIC POWERPACT PGW EXPERIENCE NEXT MARKETING NATURAL SELECTION PROMOTIONS MOMENTUM WORLDWIDE MKTG MIRRORBALL MICHAEL ALAN GROUP MASTERMIND MARKETING MATCH MARKETING GROUP THE MARS AGENCY MARKETVISION MARKETING WERKS THE MARKETING STORE MARKETING RESOURCES MARKETING LAB THE MARKETING ARM MARKETING ACTIVATIONS GROUP MARDEN-KANE LIVE NATION MEDIA & SPONSORSHIP LIKEABLE MEDIA LEGACY MARKETING PARTNERS LEADDOG MARKETING GROUP LAUNCHFIRE LAGARD´ERE UNLIMITED KICKING COW PROMOTIONS JACK MORTON WORLDWIDE INTERACTIONS THE INTEGER GROUP INSPIRA MARKETING IN MARKETING SERVICES IC GROUP HMT ASSOCIATES, INC. HELLOWORLD GROW MARKETING GOOD SOLUTIONS GROUP GOLDNFISH MARKETING GROUP LLC GMR MARKETING GEORGE P. JOHNSON GEOMETRY GLOBAL GENERATION Z MARKETING GAGE MARKETING GROUP FUSE, LLC FORMULA STREET INC. FLUENT FCBX FCB/RED FAME ESCALATE THE ELEVATION GROUP EASTWEST MARKETING GROUP DON JAGODA ASSOCIATES DEPARTMENT ZERO CONCEPT ONE COMMUNICATIONS COLLABORATIVE MARKETING GROUP COLANGELO CATAPULT CARDENAS MARKETING NETWORK BRANDFORCE BRAND CONNECTIONS BLUE CHIP MARKETING WORLDWIDE BFG COMMUNICATIONS BECORE BDA ATTACK! MARKETING A2G ARC ALL TERRAIN ALLIED INTEGRATED MARKETING ALLIED EXPERIENTIAL ALCONE ACTIVENT MARKETING, LLC THE A TEAM