Coca-Cola CRM Case Study: The Untold Story

Coca-cola’ customer relationship management (CRM) strategy is at the core of their phenomenon growth. Established in May 8, 1886, by Dr John Pemberton, who later sold the business to Asa Griggs Candler, and a few others. Today the story is different, as Coca-Cola currently ranks as the 6th most powerful brand in the world.

The success of the company is mainly from its customer relationship management process. Instead of focusing on the product, they leveraged on CRM strategies to launch series of innovative personalized marketing campaigns.

Coca-cola is big on marketing and customer-centric adverts. They spend a lot of money on advertisements and R&D. Today, the company spends about 10 percent of its revenue on advertising and marketing, approximately $4 billion annually.

In this article, you’ll learn about the Coca-Cola CRM case study, and other strategies that made them super successful.

Coca-Cola became America’s leading beverage brand and a lot of that had to do with the marketing, which was genius and ahead of the game.

– Dr. Sydnee Mcelroy

Coca-Cola CRM Case Study: Top Ways Coca-cola Uses CRM

  1. Identifying their target customers:

Coca-cola targets every customer in the market, making sure that the refreshing needs of everyone are met. Coca-cola’s targets are based on age, income, family size, gender, and geographical segmentation.

Age: The company arranges campaigns in schools to target young people between 10 and 35. They target middle-aged and older adults who are diet conscious by offering Diet Coke.

Income: Coca-cola targets its customer’s income by introducing packaging at different price ranges to increase affordability.

Family Size: They introduce packaging in different sizes, from the biggest to the smallest. Large families can get the biggest size and share it with the whole family.

Gender: They also target customers based on gender. For example, Coca-Cola Light is preferred by females, while Coke Zero and thumbs up are men’s favourites due to their strong taste.

Geographical segmentation: Coca-Cola sells its products globally and targets different cultures, customs, and climates. For instance, the Asian version is sweeter than other countries.

  1. Understanding their customers’ needs and wants

Coca-cola understands that without attentive listening, patience, and clarity, it will be very difficult for them to identify the needs of their customers.

They listen attentively to hear what their customers want.

They are always patient to understand their pain point.

Coca-cola makes sure they communicate with sincerity and speak in a way they will understand by avoiding technical jargon.

How Coca-cola Identifies Customers’ Needs

Coca-Cola brought a new innovative vending machine with a fountain dispenser called Freestyle. In this, the customer can customize their drink from 100 combinations, and this was the first time they could have provided 100 combinations that were not introduced before. The most important thing about the freestyle vending machine is that it is connected to the SAP system. So it collects all the customer data and is stored in the CRM system.

Freestyle Vending Machine

Coca-cola usually conducts surveys by using email marketing software. With Email marketing software, they could section their ideal customers based on a particular purchasing style. They were also able to get a list of positive reviews from some of your most of their loyal customers.

They use the insights obtained from surveys to create buyer personas. So that all their marketing activities are geared toward serving their customers and products tailored to their needs.

Coca-cola has multiple layers of communication methods across all its platforms. And their customer care team is well-imbibed with the right customer care etiquette. This quality service helps their customers to share their opinions about the product.

  1. Customer Loyalty

Coca-Cola has started a new marketing environment by providing a unique PIN in the bottle, which can be used to save 75 cents on the mobile bill. They can also gain points for Coke from this system. So this is one of the best marketing techniques to gain customers by giving offers to their daily use products.

  1. Direct store delivery

For adequate satisfaction of its customers, the company implemented the formula of DSD (Direct Store Delivery). This is to sustain smooth relations with local bottlers and stores. DSD collects the customer data and transfers it to the distributors. It helps in improving the delivery costs.

The customer data obtained helped Coca-Cola successfully satisfy its customers’ demands.

What CRM does Coca Cola Use?

The CRM technology Coca-Cola uses is SAP (System Applications and Products) Strategic Enterprise Management. Coca-Cola started using this CRM tool in the year 2009 and continues to use it to date. This CRM system helps Coca-cola stay connected to customers, streamline processes, and improve profitability.

SalesForce is another CRM that has contributed to the growth of Coca-cola.

SalesForce is a cloud computing CRM software and is currently used by Coca-Cola. It takes the help of the mobile app developed on the SalesForce platform. It has massively supported the technicians and repair department at Coca-Cola.

Apart from SAP and SalesForce CRM, the CRMs listed below are widely known to automate marketing processes and help strengthen customer relationships. They include:

Wrapping it up

Human connection is an important part of the company’s brand message. Coca-cola understands how essential customer relationships are in business. So they embrace it so tightly by implementing different strategies to meet their customers’ needs.

They also use SAP and SalesForce CRM software to strengthen the relationship with their customers automatically. As a business owner, you can still learn from them and implement these strategies in your little way.

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