Hello, I'm Ari Baek, a marketer from Datarize😃.

I've been pondering the best Ecommerce CRM strategies and perspectives on marketing. To offer professional insights, I've collaborated with the CSO of Datarize who is an expert in data analytics, Minsung Park, to prepare content that's accessible even to those new to CRM. Let's dive in.

The recent limitations on the use of third-party cookies for personal information protection have significantly impacted marketing. Performance marketing, aimed at acquiring new customers, faces challenges, prompting a search for alternatives. CRM has emerged as a key strategy in this evolving landscape. Today, we explore the reasons behind CRM's growing prominence and its role in addressing current marketing challenges in ecommerce.

Y2021: The Dark Age for App Marketing?

The term "dark ages" for app marketing, particularly in relation to CRM, might sound familiar. Regulations on third-party cookies, initiated by Apple's Safari in 2021 and followed by the ATT policies, have severely affected app-based marketing platforms like Meta and Snapchat. With only 10% of users agreeing to data collection, detailed targeting became difficult, leading to decreased efficiency for Meta and Snapchat and a significant drop in advertising industry profits. According to Lotame, a loss of $98 billion was recorded across Meta, Snapchat, Twitter, and YouTube.

Where Did Meta's Lost Profits Go?

Advertisers shifted their focus to search engine markets, benefiting Google and Apple. Search engine advertising, with its precise targeting based on search terms, offered a solution to the limitations faced by app marketing. The commerce media advertising market is also gaining attention, with an uninterrupted flow of advertising demand and supply ensuring continuous revenue generation. We anticipate further shifts in advertising spending.

Looking Ahead to 2024

From 2024, Google Chrome will no longer support third-party cookies, reinforcing privacy protection measures. With Chrome dominating desktop and mobile internet traffic (according to Statcounter), this policy change could render precise retargeting and app marketing strategies ineffective.

The Solution : CRM Marketing

At the 2022 Digital Marketing Summit, CRM marketing was highlighted as one of four key strategies for addressing marketing challenges:

1. Enhancing CRM: Collecting first-party cookies directly or through solutions, for marketing use.
2. Leveraging Zero-party Data: Gathering explicit user interests from the outset.
3. Boosting Brand Marketing: Focusing on awareness and reach.
4. Improving Content Marketing: Creating content that drives clicks and purchases.

In the online space, Ecommerce CRM marketing targets website visitors, those who dropped off during the purchase phase, or past purchasers, aiming to increase loyalty and sales. As performance marketing's effectiveness wanes, CRM emerges as a strategy for cultivating loyal customers and encouraging repeat purchases.

Why Opt for CRM?

Let’s quickly compare the differences between Performance Marketing and CRM Marketing.

1. Performance Marketing: Reaches 100,000 people who are new to my brand, with a 3% CTR (Click-Through Rate) and a 10% CVR (Conversion Rate).
2. CRM Marketing: Reaches 500 people who have signed up for or have purchased from my brand store, with a 30% CTR and a 30% CVR.

Comparing CRM to performance marketing reveals a clear distinction in targeting and efficiency. While performance marketing reaches broad, unacquainted audiences, CRM focuses on known, engaged customers, offering higher conversion rates amidst increasing privacy concerns. By precisely targeting those with established interest, CRM aims to recuperate sales lost through performance marketing's decline.

I hope this provides a clearer understanding of CRM marketing's significance. In our next post, we'll discuss how to implement it effectively. Stay tuned for key preparation tips.