Ever since the gaming industry was first developed, it has enjoyed immense growth that was until the great video game recession which struck in 1983. During this period, the industry managed to go from one of the fastest growing sectors valued at $3.2 million to a measly $100 million in the span of only 2 years. CRM Systems-
Since then, the industry has taken steps to ensure they continue on an upward trajectory and have now become one of the fastest growing markets worldwide.
So how does CRM fit into this puzzle?
What is CRM?
The term CRM is the abbreviation of Customer Relationship Management. It is the act of meeting or exceeding customer expectations. And as you can imagine, in an industry that is ever growing, ever changing and becoming more saturated with competition, it is vital that companies form good relations with customers in order to continue reaping their business.
How Does CRM Help?
First and foremost, building solid relationships with customers is key to ensuring that they continue to be loyal to the brand. It boils down to customer retention. Being able to keep customers ensures that the company experiences continued growth. In a world that is currently thriving on social media platforms, word of mouth is a vital tool for all companies, not just the gaming industry.
Gaming companies rely on their CRM software to do the painstaking task of organizing an existing client base to aid in retention. Another key factor of CRM Systems is the fact that the system allows companies to keep detailed information on customers. This includes preferences and customer behavior which allows companies to specifically target individuals with specific marketing strategies which in turn increase customer engagement.
All this translates to accelerated growth which means revenue growth and increased market share.
Benefits of a Great CRM System
There are many examples that prove just how effective a good CRM campaign is for gaming companies, none more so than that of Activision.
Activision is one of the stalwarts of the industry, which kind of gives them an edge to begin with. But, with that being said, one of their marketing campaigns stands out from the crowd.
Leading up to the launch of their highly anticipated game “Modern Warfare 3,” they managed to conduct what is considered to be one of the best marketing campaigns in the history of gaming. Within the first 16 days of the game’s release, they recorded sales of over $400 million, and all because they knew exactly what their customers wanted.
The reason for the success of their company is summed up by the CIO of Activision. No one likes being on the phone for extended periods of time, hence why they designed a system in conjunction with Salesforce Marketing Cloud which allowed customer to self-serve which cut down their customer relations expenditure buy 25%. This also allowed for service reps to deal with customer issues more efficiently which in turn promoted well being and customer sentiment.
Online casinos are great examples of excellent CRM strategies. Their ability to target customers and get them to play one of casino’s most popular game types just how good they are at both attracting new players and keeping their existing customers.
Risk Mitigation & CRM Impact
One of the key risks when moving to a new CRM system for companies is not only the time it takes to implement such a system, but also the cost of making such a large investment to get the system up and running effectively.
Security and privacy become a huge risk as there is always a chance that customers’ private information may be leaked during the process without the necessary protocols in place.
In order to keep the system as streamlined as possible, constant upgrades and updating is required. This can often become a costly task; however, the benefits far outweigh the costs, should it be executed properly.
CRM systems have been tested and have shown their value to the industry at large. Targeted campaigns ensure little time is wasted on non-profitable customers. It is clear that a good system promotes company growth by allowing sales and marketing teams to create solid strategies which drive customer growth, as well as ensuring customer satisfaction and market sentiment.
As the world moves towards the digital age, technology plays a major role and the gaming industry is not exempt from this progress. In order to stay relevant in this cutthroat market, those who change with the times will surely stand the test time. We look forward to the wonderful innovations the gaming industry has in-store for us.