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MKTG

MKTG. Lamb, Hair, McDaniel 2008-2009. 19. Customer Relationship Management (CRM). CHAPTER. Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University. Learning Outcomes. Define customer relationship management

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MKTG

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  1. MKTG Lamb, Hair, McDaniel 2008-2009 19 Customer Relationship Management (CRM) CHAPTER Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University

  2. Learning Outcomes Define customer relationship management Explain how to establish customer relationships within the organization Understand interactions with the current customer base Outline the process of capturing customer data LO1 LO2 LO3 LO4

  3. Learning Outcomes Describe the use of technology to store and integrate customer data Describe how to identify the best customers Explain the process of leveraging customer information throughout the organization LO5 LO6 LO7

  4. A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. Customer Relationship Management CustomerRelationshipManagement LO1

  5. Organize the company around customer segments Encourage and track customer interaction with the company Foster customer-satisfying behaviors Link all processes of the company from its customers through its suppliers http://www.crmdownload.com Online Customer RelationshipManagement Strategy LO1

  6. Leverage customerinformation Understand interactions with current customer base Identify best customers Capture customer data based on interactions Customer Relationship Management Cycle Identify customer relationships Store and integratecustomer data using IT LO1

  7. Key Points: Customers take center stage Business must manage the customer relationship across all points of customer contact Implementing a CRM System LO1

  8. REVIEW LEARNING OUTCOME LO1 Customer Relationship Management

  9. The company customizes its product and service offering based on data generated through interactions between the customer and the company. Identify Customer Relationships Customer-Centric LO2

  10. An informal process of collecting customer data through customer comments and feedback on product or service performance. Identify Customer Relationships Learning LO2

  11. The process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization. Identify Customer Relationships KnowledgeManagement LO2

  12. Experiential observations CollectedInformation Includes: Comments Customer actions Qualitative facts Knowledge Management LO2

  13. Delegation of authority to solve customers’ problems quickly—usually by the first person that the customer notifies regarding the problem. Empowerment Empowerment LO2

  14. REVIEW LEARNING OUTCOME LO2 Identifying Customer Relationships

  15. Interactions of the Current Customer Base Current Transaction Channel Past Relationship Requested Service LO3 Customer

  16. Interactions of the Current Customer Base Touch Points All possible areas of a business where customers communicate with that business. Point-of-Sale Interactions Communications between customers and organizations thatoccur at the point of sale, normally in a store. http://www.bestbuy.com Online LO3

  17. Web Point of Sale Kiosk Delivery, Installation Survey Product Registration REVIEW LEARNING OUTCOME LO3 Interactions with Current Customer Base Customer

  18. Store visits Conversations with salespeople Interactions via the Web Traditional phone conversations Wireless communications http://www.geico.com Online Capture Customer Data LO4

  19. REVIEW LEARNING OUTCOME LO4 Capturing Customer Data

  20. Response list Compiled list :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Database \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ /////////////////////////////////////////////////////////// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Data Warehouse REVIEW LEARNING OUTCOME LO5 Store and Integrate Customer Data

  21. A data analysis procedure that identifies significant patterns of variables and characteristics that pertain to particular customers or customer groups. Identifying the Best Customers Data Mining LO6

  22. Data Mining • Identify and profile the best customers • Calculate their lifetime value • Predict purchasing behavior LO6

  23. Customer segmentation Recency-frequency-monetary analysis Lifetime value analysis Predictive modeling Data Analysis LO6

  24. Recency-Frequency-Monetary Analysis Identifies customers most likely to purchase again Identifies and ranks “best customers” Identifies most profitable customers LO6

  25. Lifetime Value Analysis A data manipulation technique that projects the future value of the customer over a period of years. PredictiveModeling A data manipulation technique in which marketers try to determine what the odds are that some other occurrence will take place in the future. Data Manipulation Techniques LO6

  26. REVIEW LEARNING OUTCOME LO6 Identify the Best Customers

  27. CRM Marketing Database Applications Reinforcing customerpurchase decisions Campaign management Inducing product trialby new customers Retain loyalcustomers Cross-selling other products and services Increasing effectivenessof distribution channel marketing Designing targetedmarketing communications Improving customer service LO7

  28. Campaign Management Developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships. CampaignManagement LO7

  29. Campaign Management Developing customized offerings for appropriate segment Pricing these offeringsattractively Communicating offerings in a waythat enhances customer relationships LO7

  30. Retaining Loyal Customers Retaining an additional 5 percent of customers increases profits by as much as 25 percent Improving customer retention by 2 percent candecrease costs by as much as 10 percent Loyalty programs reward loyal customers for making multiple purchases Loyalty programs provide information about customers and trends LO7

  31. Targeted Marketing Communications InfrequentUsers ModerateUsers HeavyUsers • Offer direct incentives, such as a price discount • Offer more reinforcement of past purchase decisions • Design around loyalty and reinforcement of purchase LO7

  32. Increasing Effectiveness ofDistribution Channel Marketing RFID technology Multichannel Marketing CRM Databases http://www.kidsdadsmoms.com Online LO7

  33. REVIEW LEARNING OUTCOME LO7 Leveraging Customer Information Marketing Information • Campaign management • Retaining loyal customers • Cross-selling other products • Designing targeted marketingcommunications • Reinforcing purchase decisions • Inducing product trial by new customers • Increasing effectiveness of distribution channel marketing • Improving customer service CRM Database Applications

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