Zara CRM Case Study

By Rob Binns | Senior Writer

This is a review of Zara's CRM system, which can help you decide what type of Customer Relationship Management software is right for your business.

Customer Relationship Management Overview

International clothing brands such as Zara recognise the benefits of CRM software to help them understand the needs of their customers, what they like and don’t like. They use this information to better relate to them as well as find ways of boosting their profile and profits.

About Zara

Zara is an internationally known clothing company, particularly in Europe. Originating in Spain, Zara has over 1,700 stores all over the world and is well-known for being able to develop products and have them available in stores within two weeks, well above the average rate for the fashion industry of around six months.

The company operates on a zero advertising policy which means that it has to keep attracting customers in other ways in order to keep making profits and stay relevant in face of tough competition from similar companies such as H&M and Benetton.

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Zara and CRM

Zara has developed effective relationships with its customers, and thanks to the benefits of CRM, its customers are loyal and make continued visits throughout the year, with the average customer visiting 17 times compares to other stores’ average of four.

What’s impressive about Zara is that it is able to have such a dedicated and loyal customer base despite the lack of advertising and therefore continued awareness.

Using CRM software, Zara is able to collect information about sales and work out which products are popular, and with this data easily to hand, designers are able to produce new items quickly based on the latest trends and in styles and colours preferred by their shoppers.

As they are able to do this with a short turn around before items hit stores, they can ensure that they stay ahead of their competitors and always showcase the latest fashions to their customers. They also ensure that they produce their clothing items in limited quantities to make them more exclusive, and more desirable by their customers.

By listening to the needs of their customers, Zara has achieved what most fashion retailers can only dream of achieving. The majority of their clothing sells at full price, rather than less than half like most of its competitors. By shunning traditional marketing techniques such as advertising, discounts and gimmicks, Zara have created a clothing brand which is respected and coveted and stays ahead of the pack.

Zara is a fantastic example of CRM data used effectively in order to improve a brand and keep current with its customers. Other brands and businesses, regardless of their size, can learn from this example and use the views and habits of their customers to best appeal to them and to encourage new customers and therefore boost sales, boost brand awareness and boost profits as well.

Using CRM software, Zara has streamlined its customer data collection and found ways to improve its products and services as well as connect with customers at a more informed level. Your business can also benefit from the features and service available with CRM software from top providers.

Rob Binns Expert Market
Rob Binns Senior Writer

Rob writes mainly about the payments industry, but also brings industry-specific knowledge of CRM software, social media monitoring, and invoice finance. When not exasperating his editor with bad puns, he can be found relaxing in a sunny corner, with a beer and a battered copy of Dostoevsky.

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