MARK 7397 Spring 2007. Customer Relationship Management: A Database Approach. Class 2. James D. Hess C.T. Bauer Professor of Marketing Science 375H Melcher Hall [email protected] 713 743-4175. Four Perils of CRM. 1. Implementing CRM before creating a customer strategy.
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James D. Hess
C.T. Bauer Professor of Marketing Science
375H Melcher Hall
1. Implementing CRM before creating a customer strategy
2. Installing CRM technology before creating a customer-focused organization
3. Assuming that high tech CRM is better than low tech
4. Stalking, not wooing, customers
Management often has “marketing myopia” (focus on existing products rather than customer needs):
“We are in the business of selling filing cabinets”
“We are in the business of storing and accessing paper records.”
A customer bought a $45,000 Lexus and on the way how from the dealer turned on the radio. He discovered his favorite classical radio stationed was programmed on the first channel button. He pushed the second button and it had his regular news station. The third button had his daughter’s favorite rock station. When he got home, he called the Lexus dealer to ask whether they were psychic. “No,” said the salesperson, “We just had the mechanic note the settings on your trade-in car and set the radio in the your new Lexus for you.”
Isn’t CRM just capturing names and addresses from customer transactions and then up-selling or cross selling them in the future?
Customers just want there lives made easier.
driven by the gap between the customer's expectation of performance and their perceived experience of performance
(American Customer Satisfaction Index) with products and services
Source: http://www.theacsi.org, University of Michigan
Does CRM court customer friendship?
What are some of your examples of delightful customer relationships?
Is this bad news for consumers?
Loss of personal privacy 56%
* October 2001 Harris Interactive survey
Privacy is valued
To a Radio Shack clerk: My zip code's none of your business.
But so is identity
At a hotel reception desk: Do you know who I am?
92% of people surveyed in 2001 feel positively about companies that ask permission before sharing information.
Opting In: Can I send you stuff?
Opting On: Will you agree to listen?
Opting When: Will you tell me when you will listen?
Opting Where: Where do you want to listen?
Opting How: How should I reach you?
Opting Now: Should I be “always on” for you?
With Don Peppers, Dr. Rogers co-authored The One to One Future (Currency/Doubleday 1993), celebrating its 11th year in print, was named by Inc. magazine's editor, George Gendron, as "one of the two or three most important business books ever written" and is widely acknowledged as the bible of the customer strategy revolution.