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Customer Relationship Management

Customer Relationship Management

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Customer Relationship Management

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Presentation Transcript

  1. Customer Relationship Management Key Concepts

  2. 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 Customer RelationshipManagement Strategy

  3. 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

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

  5. Customer Relationship Management

  6. 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

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

  8. 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

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

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

  11. Identifying Customer Relationships

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

  13. 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. Interactions of the Current Customer Base

  14. Web Point of Sale Kiosk Delivery, Installation Survey Product Registration Interactions with Current Customer Base Customer

  15. Store visits Conversations with salespeople Interactions via the Web Traditional phone conversations Wireless communications Capture Customer Data

  16. Capturing Customer Data

  17. Response list Compiled list :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Database \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ /////////////////////////////////////////////////////////// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Data Warehouse Store and Integrate Customer Data

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

  19. Data Mining • Identify and profile the best customers • Calculate their lifetime value • Predict purchasing behavior • Amazon.com great at it

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

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

  22. 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

  23. Identify the Best Customers

  24. CRM Marketing Database Applications How to Use Info Effectively 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

  25. 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

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

  27. 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

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

  29. Increasing Effectiveness ofDistribution Channel Marketing RFID technology Multichannel Marketing CRM Databases

  30. REVIEW LEARNING OUTCOME 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