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Effective CRM requires 'understanding of human behavior'

Rachel Wheeler Archive
Businesses using customer relationship management software (CRM) to help build links with their client base could also benefit from a greater understanding of human behavior.

That is the view of marketing and psychology professor Dr Robert Cialdini, who said firms looking to connect with customers must rely on the power of influence.

While data quality is important in helping to target would-be buyers, he told Destination CRM that companies will only see success if they use that information effectively.

For example, once a business has identified which groups it wishes to target, Mr Cialdini said it may consider providing small gifts or services free of charge.

He claimed this may drive the customer towards returning the favour by making a future purchase, helping to build up trust and rapport.

"It's a rule in all human cultures that obligates me to give back to you the form of behavior you first provide to me," Mr Cialdini added.

According to Marketing Direct, car manufacturer Hyundai recently sent out a chamois leather cleaning cloth to all owners of its cars.

The cloth was accompanied by a brochure detailing all of the firm's new models released since the customer's last vehicle was bought.