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ETL RFM Primary Key Granularity Data Mart Olap Cubes Fact Tables Hierarchy Navigation. Customer Side Company Side. Customer Selection Increase C. Number Keeping Existent C. RetentionC. Customer Satisfaction , Keeping E xistent Customer , Customization , Service Range.
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ETL RFM PrimaryKey Granularity Data Mart OlapCubes FactTables Hierarchy Navigation Customer Side Company Side CustomerSelection Increase C. Number KeepingExistent C. RetentionC. CustomerSatisfaction, KeepingExistentCustomer, Customization, Service Range Segmantation TargetingPosititioning Costs & Benefits CRM Based Marketing Strategy Functions Database How? Software Errors Aim Datamining Information & RelationalMarketing Prediction or Description CRM? Loyalty Retention, Winback & Acquisition Theory (Remzi Grocer) or Software Cust. Pyramid LoyaltyTypes Reason of Loy. Rel. Management CRM System SalesForceAutomation ImplementingCrmSystems Trust ConflictHandling Commitment Communication MeasuringCustomerSatisfaction
CRM FUNCTIONS CustomerSelection Segmentation CampainModelling BrandManagement New Products GainCustomer OrderMan. DemandAnalysis LogisticMan. ComplainMan. RetainCustomer Market Leadership NecessityAnalysis IncreasingCustomers Analitic CRM CrossSelling
BENEFITS - COSTS COMPANY SIDE - CUSTOMER SIDE • Benefits; • CustomizedProducts • MoreIncome • LongTermIncome • Cross ‐selling • Up ‐selling • Bundling • CustomerLoyalty • Costs; • IT Costs (server, software, training, security, labororganization), • Frameworkchange , • Re-engineering • Resistancebyemployees • Benefits; • Regularity (Barber- no risk) • Touchpoint(Banks - ques) • Customizedproductor service • Enhances service (HolidayInn) • Costs; • Sharingyourpersonalinformations • Opportunitycosts(Underestimatingtheothercompanies’ offers)
LOYALTY – CustomerPyramid PotentialCustomer; There is a possiblityto be Customer of thecompany in thefuture Customer;Whobought servise orproductfromthecompany RegularCustomers;Who buy servieorproduct in regular time interval SupportingCustomers;Regularcustomer but do not recommendthecompanytoothercustomer LoyalCustomers;Regularcustomersandrecommendcompanys’ productorservicestoothercustomers Behavioral Brand Loyalty: UndividedLoyalty :A,A,A,A,A DividedLoyalty :A,B,A,B,A,B SwitchedLoyalty:A,A,A,B,B,B IndifferenceLoyalty:A,B,C,D,E,F,G,H WhichFactorsEffectstheCustomerLoyalty???
WhichFactorsEffectstheCustomerLoyalty? Before Sales During Sales After Sales Expectations Performance/Quality Pleased Judgements Performance/Quality Satisfied ExpectationsandJudgements Disappointment
CRM BASED STRATEGY Customer Data INFORMATION MANAGER CRM SYSTEM Marketing Strategy
SALES FORCE AUTOMATION “Theapplication of digitalandwirelesstechnologiestopersonalselling” is known as SFA. Sfa software; organizesandmanages data aboutsalestouchpointsandcustomer’shistorywithcompany. SFAmayusedata miningtointegratethepipeline data withother CRM data andmakesuggestionstosalesrepresentative. Automationtoolsdescribewhereprospects /customerare in thesalescycle. “EXPEDIA EXAMPLE” SFA toolshaverisksandcosts.??? IdentfyLeads Suspectedinterest QualifyLeads ValueEstimates ContactBuyingCentersRecognizeKeyplayers DevelopRelationship Developinterest Re-contact Winbackinterest NO YES Close Ask forthesale NegotiateTerms LongtermView
SALES FORCE AUTOMATION TASKS • Benefits of SFA : • Increasesalesproductivityandefficiency. • Offers high quality customer service. • Increasecustomersatisfaction. • Createscustomerloyalty. • SFA PROBLEMS: • Planning • Communication • Measurement Source:Earl D. Honeycutt, TanyaThelen, Shawn T. Thelen, Shoren T. Hodge(2005); “ImplementstoSalesForceAutomation”, Industrial Marketing Management, Volume 34, pp.313-322. Definitionstate - aim Collectingfeedback Connectionerrorsbetweendifferentdepartments Lack of salespersoneducation Focusing on organizationalprofits - salesperson? Resistancetodownsizing - automation Lack of processdefinitions Rewardmechanisms
SALES FORCE AUTOMATION TASKS Contactand Time Management OpportunityorLeadManagement KnowledgeManagement PriceQuotesandOrderConfiguration Follow-upManagement AnalysisandReportingTools
Contact and Time Management • Communicationwithpotentialcustomersandexistentcustomers • (e-mail, smsavailability) • Dateupdateandintegration • customer name, address, phonenumberandetc • organizationchart, decisiontree • Providinginformationtosalesrepresentativesaboutcustomer data • (birthday, hobies, interests,locationmaps) • Sharinginformationbetweendepartmentsandsalesteammembers • Time managementtool, meetingarrangements Opportunity or Lead Management • Determinepotentialcustomers of thecompany • Productfocus service • Correctordercontrol • Purchasingprecisely • Definingcorrectcommunicationpointwithcustomers • Opportunitymanagement = Leadership + Processandinformationmanagement • SalesForecast • CustomerValueCalculation • Futuresaleforecast
Knowledge Management • Easy managing, managing organizational information • Intranet, network inside the company • Extranet, sharing information, B2B - suppliers • Ordering effectively • Administrative facilities Price Quotes and Order Configuration • Pricelists,discountforms, pricequotesinformation • Productconfiguration is importantforsalesrepresantatives • Decreasesoffering time • Cross-selling • Establishing self service withExtranetsupport – e-commerce Follow-up Management • Communication is a part of Management • Organization of communicationanddelayfollow-up • Productdelivered on time? • E-mail send • Complaintsystem
Analysis and Reporting Tools • Providingaccesstocallandsalesreportsiformations • ProvidingAnalysisforsalesmanagers • Time –customer - locationbased • ProvidinginformationforManagers • Ratios, percantageinformationaboutthesales Call Centers • Direct access to customers • Classical call center hyergy: • Menu options • Waiting customer representative • Identication process • Providing iformation about customer to customer represenatative • Problem definition • Informing customer about his/her problem result • Call Routing • Interactive Voice Response • Caller ID Systems • Automatic Distribution System • Trouble ticket • Caller Note
Data Mining • DescriptionorPrediction ??? • Automated prediction of trends and behaviors. • Automated discovery of previously unknown patterns.
Data Mining DecisionSupportSystemsFunctions: ChurnAnalyse:Whichcustomerwillswitch – Towhichrival Cross-Selling:Whichcustomer – Whichproduct Fraud-Detection: Whichcustomer is planningtocheat (assurance) Risk Management:Crediycardapply –Yesor No CustomerSegmentation: Whoaremycustomers? Targetedads:Whichadvertising? Towhichcustomer? SalesForecast:Howmanyproductswill be sold in thenextmonth
Data Mining • DescriptionorPrediction ??? • RFM (Recency, Frequency, Monetary) • Functions; • Classification – Modelling – fuction- test set (Predictive) • Clustering (Descriptive) • AssociationRule (Descriptive) • Regression (Predictive) • DeviationDetection (Predictive) • SequentialPatternDiscovery (Descriptive)
Data Mining • InformationDiscoveryMethods; • DecisionTrees • GeneticAlgorithms • Neural Networks First Generation Second Generation Third Generation 6 ads 1 ad 11 ads 12 ads 15 ads 16 ads 25 ads 22 ads 19 ads 31 ads 28 ads 25 ads
Data Mining • Problems; • Measurable ? • Data Size (Enormous) • Disordered Data • Data quality • SecuringPersonal Data • Multimedia Data -Streaming
CUSTOMER CYCLE Retention-Holding Gain Regain Suspect-Potential LoyalCustomer RepeatCustomer Customers’FirstSales UnactiveCustomer LosyCustomer
CRM SYSTEM Recognize; Name &Past GainingbySatisfyingCustomers; Performance & Quality AIM; OnetoOneRelation Result; CustomerLoyalty Develop; CustomerRelation
LOST CUSTOMER WhichCustomer is abouttoleave? Life Time value of Customer Why he/she is leaving? Whichcontactway is thebest? Howmuch time is neededtoactivatethecustomer? LostCustomer FirstConversatonAfter Problem WithCustomer; Thanksfortrustingtoourcompany CompetelyLostCustomer; ThanksforPastsupporttoourcompany