I went to my favorite casino in Atlantic City a few weeks ago and “won” – meaning, I broke even at the Blackjack tables. And I’ve already been invited back to return next month, for free. Do they know what they’re doing? They sure do.
Even though Atlantic City has experienced numerous consecutive months of revenue declines, these casinos are masters of customer relationship marketing (CRM). They use loyalty cards to know exactly how much money thousands of players spend in the casino, in their restaurants and bars, and in their gift shops. They custom-communicate with their database by mail and email on a regular basis – more than once a month – with special free room offers, free slot play and other added values. And believe it or not, these offers are customized based on sophisticated modeling software that predicts profitability based on previous spending activity.
So why don’t many CPG companies put this much emphasis on CRM? Sure some large CPG companies like Kraft and Unilever have very sophisticated CRM programs. If you think about, CRM is the most Reality-based marketing approach available. Not all consumers are alike, and what motivates one isn’t necessarily going to motivate another. So why try to treat people like a herd?
Does your company effectively use CRM? If not, it may not be maximizing the Real effective way to reach consumers.