The Importance of Testing in CRM: Building a Culture of Optimisation

Businesses can no longer afford to rely on assumptions when it comes to customer relationship management (CRM). Instead, a data-driven approach that incorporates continuous testing and optimisation is essential for maximising engagement, retention, and revenue. According to a study by McKinsey, companies that leverage customer analytics are 23 times more likely to outperform competitors in terms of new customer acquisition and 9 times more likely to surpass them in customer loyalty.

Why CRM Testing Matters

CRM testing involves experimenting with different strategies, messaging, and touchpoints to determine what resonates most with customers. This can include A/B testing email subject lines, personalisation tactics, send times, discount strategies, or even complete journey optimisations.

Benefits of a Robust CRM Testing Strategy:

1. Higher Customer Engagement: A/B testing email campaigns can increase open rates by up to 49%. Source: Campaign Monitor

2. Improved Conversion Rates: Brands that personalise their email content see transaction rates six times higher than those that don’t. Source: Experian

3. Reduced Churn: Companies that frequently optimise customer journeys experience up to 30% lower churn rates. Source: Forrester

4. Increased Revenue: Research found that data-driven decision-making can boost profits by 6% annually. Source: Harvard Business Review

   
   

Building an Optimisation Culture in CRM Teams

Many CRM teams struggle to embed testing and optimisation into their workflows. To create a culture of continuous improvement, businesses should focus on the following key areas:

1. Empower Teams with Data-Driven Decision Making

CRM and retention teams need easy access to performance data and insights. Implementing clear testing frameworks and sharing results across teams can help embed data into daily decision-making.

2. Encourage Experimentation at Scale

Too often, testing is limited to email subject lines rather than full customer journeys. Expanding experimentation across CRM touchpoints—including push notifications, SMS, and in-app messaging—can drive deeper engagement.

3. Define Clear KPIs for CRM Optimisation

To ensure testing drives meaningful improvements, businesses should define key metrics, such as:

• Email open and click-through rates

• Conversion rates from CRM channels

• Retention and repeat purchase rates

• Customer lifetime value (CLV)

4. Leverage AI and Automation

AI-driven CRM tools allow businesses to test and optimise at scale. Features such as predictive analytics, AI-powered segmentation, and automated A/B testing can deliver highly relevant, personalised experiences that improve performance.

5. Create a Culture of Continuous Learning

Encouraging teams to document test results, share insights, and apply learnings across campaigns will foster a test-and-learn mindset. Regular team reviews of optimisation strategies can help reinforce this behaviour.

Building a culture of testing and optimisation in CRM is not just a nice-to-have—it’s a necessity in today’s data-driven marketing landscape. Businesses that embrace continuous improvement can enhance customer experiences, increase retention, and ultimately drive higher revenue.

Author: Helen Day.

Customer Retention Specialist & CRM Consultant, RetentionMinds, UK.