Slide 9.1 Slide 9.

Learning outcomes

Outline different methods of acquiring customers via
electronic media

Evaluate different buyer behaviour amongst online
customers
CHAPTER 9

Describe techniques for retaining customers and cross-
CUSTOMER RELATIONSHIP and up-selling using new media.
MANAGEMENT

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007

Slide 9.3 Slide 9.4

Management issues What is CRM?

What is the balance between online and offline
An approach to building and sustaining long-term business with
investment for customer acquisition? customers

CRM comprises of four marketing activities:

What technologies can be used to build and maintain

Customer selection
the online relationship?
Customer acquisition

How do we deliver superior service quality to build
Customer retention
and maintain relationships?
Customer extension

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007

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 Slide 9.6

Marketing applications of CRM

A CRM system supports the following marketing applications:

Sales force automation (SFA). Sales representatives are supported in their account
management through tools to arrange and record customer visits.

Customer service management. Representatives in contact centres respond to customer
requests for information by using an intranet to access databases containing
information on the customer, products and previous queries.

Managing the sales process. This can be achieved through e-commerce sites, or in a B2B
context by supporting sales representatives by recording the sales process (SFA).

Campaign management. Managing ad, direct mail, e-mail and other campaigns.

Analysis. Through technologies such as data warehouses and approaches such as data
mining, which are explained later in the chapter, customers’ characteristics, their
purchase behaviour and campaigns can be analysed in order to optimize the
marketing mix.

Figure 9.1 The four classic marketing activities of customer relationship management

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007

Slide 9.7 Slide 9.8

E-CRM – a definition Benefits of e-CRM

E-CRM is:

Targeting more cost-effectively

Applying –
Achieve mass customization of the marketing
Internet and other digital technology…
(web, e-mail, wireless, iTV, databases) messages

Increase depth, breadth and nature of relationship

To –
acquire and retain customers
A learning relationship can be achieved
(through a multi-channel buying process
and customer lifecycle)
Lower cost

By –
Improving customer knowledge, targeting,
service delivery and satisfaction.

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007

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Slide 9.9 Slide 9.10

Permission marketing Conversion Marketing

Customers agree to be involved in an organization’s
Using marketing communications to maximize
marketing activities, usually as a result of an conversion of potential customers to actual
incentive customers and existing customers to repeat

Godin (1999) suggests that dating the customer customers
involves:
Agrawal et al. (2001) scorecard:

Offering the prospect an incentive
Attraction

Using the attention to teach
Conversion

Reinforce the incentive
Retention

Offer additional incentive

Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007

Slide 9.11 Slide 9.12

Differences between B2B and B2C

The Online Buying Process
buyers

Five different types of web users
Market structure

Directed information-seekers
Nature of the buying unit

Undirected information seekers
Type of purchase

Directed buyers

Services: low-volume, high-value

Bargain hunters

Stationary: high-volume, low-value

Entertainment seekers

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Slide 9.13

Marketing Communications for

Customer Acquisitions

From push to pull

From monologue to dialogue

From one-to-many to one-to-some

From one-to-many to many-to-many

From ‘lean-back’ to ‘lean-forward’

The medium changes

Increase in communication intermediaries

Integration remains important
Measures used for setting campaign objectives or assessing campaign
Figure 9.6
success increasing in sophistication from bottom to top
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007

Slide 9.15 Slide 9.16

Assessing marketing communication

Types of CRM applications
effectiveness

0 Volume or number of visitors
Ideal CRM system will support multi-channel

1 Quality or conversion rates to action communications or the customer preferred channel

2 Cost (cost per click)

3 Cost (cost per action or acquisition)

4 Return on investment

5 Branding metrics

6 Lifetime-value-based ROI

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 The End!

Figure 9.18 An overview of the components of CRM technologies