Professional Documents
Culture Documents
1
■ Control over buying process
Information, comparison, selection, easy to find
■ Best possible price
Delivery (free), quality
■ All payment options
Secure
■ Communication designed to suit needs
Computerized, complex, caring
2
■ All forms of trading
Direct
Traditional
Retail
E-commerce
Wholesale
Combination
3
■ New convergence
4
■ Control over buying process
Information, comparison, selection, easy to find
■ Best possible price
Delivery (free), quality
■ All payment options
Secure
■ Communication designed to suit needs
Computerized, complex, caring
5
■ All forms of trading
Direct
Traditional
Retail
E-commerce
Wholesale
Combination
6
■ New convergence
7
■ Customer relationship management (CRM)
8
■ Information in the system can be accessed and
entered by employees in different departments)
Sales
Marketing
Customer service
Training
Professional development
Performance management
Human resource development
9
■ Details on any customer contacts can also be
stored in the system
10
■ Many inter-related aspects
11
■ Direct interaction with customers
12
■ Operations that ultimately affect the activities of
the front office
Billing
Maintenance
Planning
Marketing
Advertising
Finance
Manufacturing
13
■ Interaction with other companies and partners
Suppliers/vendors
Retail outlets/distributors
Industry networks (lobbying groups, trade assn’)
14
■ Key CRM data can be analyzed in order to plan
Target-marketing campaigns
Conceive business strategies
Judge the success of CRM activities (e.g., market
share, number and types of customers, revenue,
profitability)
15
16
■ CRM initiatives often fail
17
■ Three key phases
1. Customer Acquisition
2. Customer Retention
3. Customer Extension
19
20
■ Attracting our customer
For the first purchase
We have acquired our customer
■ Growth
Market orientation, innovative IT & value creation
Aim is to increase the number of customers that
purchase from us for the FIRST TIME
21
■ Re-purchase
Our customer returns and buys for a second time
This is most likely to be the purchase of a similar
product or service, or the next level of product or
service.
■ Growth
Market orientation, innovative IT & value creation
Aim is to increase the number of customers that
purchase from us REGULARLY
22
■ Additional, supplementary purchases
Our customers are regularly purchasing
We introduce products and services to our loyal
customers different from original purchase
Once purchased, our goal is to retain them as
customers for the extended products or services
■ Growth
Market orientation, innovative IT & value creation
Aim is to increase the number of customers that
purchase ADDITIONAL products
23
24
■ Focused upon the three levels of needs of
customers
25
Core
Benefit
Basic
Product
Expected
Product
Augmented
product
Potential
Product 26
■ Generation of shareholder value
27
28
29
30
■ Updated IT
Efficient, speedy and focus upon customer needs
Whilst IT and/or software are not the entire story
for CRM, it is vital to its success
CRM software collects data on consumers and
their transactions
Organizations will track individuals, and try to
market products and services to them based upon
similar buyer behavior seen in other individuals
31
32
■ 1. Validation
■ 2. Discovery
■ 3. Action
33
■ 1. Validation
■ 2. Discovery
■ 3. Action
35
■ Correct data
36
■ Use of data mining techniques
37
■ Right communication
38
■ CRM is corporate strategy composed of
applications, technology and products that fulfill
three essential requirements
1. Organization perspective
2. Customer perspective
3. Front office staff perspective
39
■ 360° view of each customer
40
2. Customer
perspective
■ Customers to have a consistent view
41
■ Staff performance
42
44
■ Important
45
■ Understand
Demographics, purchase patterns & channels
Segmentation to identify logical unique groups
Primary research to capture needs and attitudes
Customer valuation to understand profitability
■ Differentiate
Based on the value customers
are expected to deliver
46
■ Develop
Products, services, channels and media can be
customized based on the needs of quantitative
customer segments
■ Customize
Based on the potential value
delivered by customer segment
47
■ Interact
Not just through marketing, sales and media
Distribution, shipping, customer service & online
■ Deliver
Delivering value is a cornerstone
Factors including quality,
convenience, speed,
ease of use, responsiveness
and service excellence
48
■ Acquire
Learning about customers makes it easy to
identify those producing the greatest value
■ Retain
Maintain interaction;
Deliver on value
Customers change as they move
through differing life stages
Modify the service
49
Subconscious Expectations
Pizza with specified toppings
Take 10 minutes
Come in a packed box
Remain warm till you reach home
Charges – standard and acceptable price
Pizza will taste reasonably good