Winning Customers – Winning Sales

ThS. Nguyễn Thị Trung Trinh – 090.88.736.88

Assessment

1. Điểm quá trình (30%):

1.1 Attendance (15days = 10đ) => 10%
1.2 Group presentation & debated by others => 20%
- Book presentation (10%)
- Competitors’ Data analysis on E-commerce (10%)

2. Giữa kỳ (20%):
Group presentation & debated by others:
- Customer Journey
- CRM Project planning & applying (MKT, Sales, Customer service)
3. Cuối Kỳ (50%):
- Informed by Training Dept
 Day Contents
- Part 1: Introduction to CRM

- Part 2: Strategic to CRM

1-9 - Part 3: Implemeting the CRM strategy

- Part 4: Developing and managing Customer-related databases

- Part 5: Future of CRM

- Group presentation & debated by others:
10,11
- Competitors’ Data analysis on E-commerce
- Group presentation & debated by others:
12,13, 14
- CRM Project planning & applying (MKT, Sales, Customer service)
15 - Review
 Bạn chọn
Bán cái gì?
Part 4 - Contents

1. Customer Database 8. Data-building schemes

2. Benefits of Data Based Customer 9. Failure to integrate data leads
Value Management Approach to…
3. Benefits of Marketing Databases 10. Analytical CRM
4. Uses of Marketing Databases 11. The purposes of Analytical CRM
5. Why customer-related data are 12. Analytics for CRM strategy and
important tactics
6. Big data 13. How analytics are used during
7. 3V’s of Big data the customer lifecycle
14. Service analytics
15. Data mining
Part 4 - Contents

16. What data mining analytics do 23. Tools To Identify The Best Candidates
17. Marketing Metrics 24. Impacts of Customer Churn on a firm
18. Traditional and Customer Based 25. How to deal with an unhappy
Marketing Metrics customer?
19. Why don’t unhappy customers 26. It’s time to fire a guest
complain? 27. Risk management plan
20. Managing Complaints 28. Service recovery definition
21. The Gaps Model 29. Organizing Framework For Managing
22. CRM with Employees Complaints And Service Recovery
1. Customer Database

 Data from active and inactive customers

 Basic information: name, address, zip code, and telephone number

 Demographic information: age, gender, marital status, education, number of people

in household, income

 Psychographic information: values, activities, interests, preference

 Transaction history: frequency of purchase, amount of spending

 Other relevant information: inquiries and referrals, satisfaction, loyalty

2. Benefits of Data Based Customer Value Management Approach

a. Integrate and consolidate customer information

b. Provide consolidated information across all channels to assist in timely and relevant
communication with customers

c. Manage customer cases

d. Personalize the service and products offered to each customer to meet expectations

e. Automatically and manually generate new sales opportunities

f. Provide flexibility to adapt campaigns to take changes in customer behavior or

information into account
2. Benefits of Data Based Customer Value Management Approach

g. Yield faster and more accurate follow-up on sales leads, referrals and
customer enquiries
h. Manage all business processes by introducing a central point of control
ensuring all business processes are executed in accordance with correct and
effective business rules
i. Give top managers a detailed and accurate picture of all sales and marketing
activities

j. Instantly react to a changing business environment

3. Benefits of Marketing Databases

 The ability to carry out profitable segmentation

 Ability to retain customers and repeat business

 The ability to spot potentially profitable customers

4. Uses of Marketing Databases

a. Uses that directly influence customer relationship:

➢ Identify and profile the best customers
➢ Develop new customers
➢ Deliver customized messages that are consistent with product/service usage
➢ Send follow-up messages to customers for post-purchase reinforcement
➢ Cross-sell products/services
➢ Ensure cost-effective communication with customers
➢ Improve promotion result by efficient targeting
➢ Personalize customer service
➢ Stealth communication with customers
4. Uses of Marketing Databases

b. Uses that directly influence other business operations:

➢ Evaluate and refine existing marketing practices

➢ Maintain brand equity

➢ Increase effectiveness of distribution channels

➢ Conduct product and market research

➢ Integrate the marketing program

➢ Create a new valuable management resource

5. Why customer-related data are important

 All forms of CRM – strategic, operational and analytical – rely on customer-

related data
 Customer-related databases are the foundation for the execution of CRM
strategy.
 Proficiency at acquiring, enhancing, storing, analysing, distributing and using
customer-related data is critical to CRM performance.
 The data that are employed for CRM purposes are not only about customers
(i.e. ‘customer databases’), but also for customers.
6. Big data

➢ Big data are structured and unstructured data produced by users of social
media and elsewhere, including metering data, climate data, mobile phone
GPS signals, and stock ticker data.

➢ Big Data presents an opportunity for businesses only if the data can be
interpreted and acted upon.
7. 3V’s of Big data
8. Data-building schemes
 Competition entries: Customers are invited to enter competitions of skill, or lotteries.
They surrender personal data on the entry forms.

 Subscriptions: Customers may be invited to subscribe to a newsletter or magazine,

again surrendering personal details

 Registrations: Customers are invited to register their purchase. This may be so that
they can be advised on product updates.

 Loyalty programs: Loyalty programs enable companies to link purchasing behaviour to

individual customers and segments. When joining a program, customers complete
application forms, providing the company with personal, demographic and even
lifestyle data.
9. Failure to integrate data leads to…

 Costly operational inefficiencies

 Duplication of work
 Poor customer experience
 Damaged customer relationships.
10. Analytical CRM

Analytical CRM is the process through which organizations

transform customer-related data into actionable insight for
either strategic or tactical purposes.
11. The purposes of Analytical CRM

a. Capturing all relevant customer information

➢ Data integration and standardization

➢ Real-time updating of customer information

➢ Incorporation of external sources of information

➢ Evaluation of customer-related back office data

11. The purposes of Analytical CRM

b. Customer demographic analysis and customer behavior modeling

 Define customer segments to form basis for differential marketing decisions

 Analysis of customer transaction history

 Analysis of customer service records

 Prediction of future purchase behavior

c. Customer value assessment

 Focus resources on most valuable customer relationships

12. Analytics for CRM strategy and tactics

Build revenues Reduce costs Enhance loyalty/satisfaction

Cross-sell campaigns Automate selling processes Enhance complaints resolution

Up-sell campaigns Service customers online Improve customer service

Protect valued relationships Improve customer self-service Improve fulfilment process

Generate sales leads Sack unprofitable customers Improve online experience

Acquire new customers Improve sales rep productivity Improve value proposition

Close more opportunities Improve data quality Introduce CSat measures

13. How analytics are used during the customer lifecycle

 Customer acquisition
➢ Lead scoring might take account of a wide range of market,
organisational, personal, relational and behavioural attributes.
 Customer retention
➢ Identify which customers have highest future potential CLV.

 Customer development
➢ Identify the next best offer to make the customer.
14. Service analytics

 Service analytics provide managers with information on how effectively and

efficiently customer service generally, and individual agents or technicians
specifically, are operating.

 Important metrics for managers of field service operations, for example, include
technician utilization, parts inventory, travel time, first time fix rate (FTFR),
mean time to resolve (MMTR), and job backlog.
Oracle inbound
telephony
dashboard
15. Data mining

Data mining is the application of descriptive and predictive

analytics to large data sets to support the marketing, sales

and service functions.

16. What data mining analytics do

 Classification

 Estimation

 Prediction

 Affinity grouping

 Clustering

 Description and visualisation

17. Marketing Metrics

Marketing Metrics

Primary Popular Strategic

Traditional
Customer-based Customer-based Customer-based

Customer Customer
Market Share Sales Growth
Acquisition Activity
18. Traditional and Customer Based Marketing Metrics

Traditional Marketing Metrics Primary Customer Based metrics

•Acquisition rate
•Acquisition cost
•Market share •Retention rate
•Sales Growth •Survival rate
•P (Active)
•Lifetime Duration
•Win-back rate

Popular Customer Based metrics Strategic Customer Based metrics

•Share of Category Requirement •Past Customer Value

•Size of Wallet •RFM value (Recency, frequency,
•Share of Wallet monetary)
•Expected Share of Wallet •Customer Lifetime Value
•Customer Equity
19. Why don’t unhappy customers complain?

 They feel the company doesn’t care. Perhaps the company or the
industry has a reputation for treating customers poorly

 It takes too much time and effort

 They fear retribution. Many people are reluctant to complain about the
police, for example

 They don’t know how to complain.

19. Why don’t unhappy customers complain?

80/20
19. Why don’t unhappy customers complain?

Social listening
tools
20. Managing Complaints

- CRM system (Customer relationships management)

- Contact center + Call center
- Survey
- Employee
- Khách hàng bí mật (Mystery shopper)
- Other ….
21. The Gaps Model

 Gap 1
 Knowledge gap: difference between what senior management believes
customers expect and what customers actually need and expect
 Gap 2
 Policy gap: differencebetween management’s understanding of customers’
expectations and service standards they set for service delivery.
 Gap 3
 Delivery gap: difference between specified service standards and service
delivery teams’ actual performance on these standards.

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21. The Gaps Model

 Gap 4
 Communications gap: difference between what company communicates, and
what customer understands and subsequently experiences.
 Gap 5
 Perceptions gap: difference between what is actually delivered and what
customers feel they received
 Gap 6
 Service quality gap: difference between what customers expect to receive and
their perception of service that is actually delivered.

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22. CRM with Employees

a. CRM Strategy is increasing employee satisfaction to increase customer

satisfaction
b. Internal Marketing (IM)-treating employees as if they were customers- involves:

➢ Improving management style

➢ Improving recruitment practices

➢ Integrating all employees into the planning cycle

➢ Refocusing training on interactive and service skills

➢ Open communication lines and empowerment of front-line staff

22. CRM with Employees
23. Tools To Identify The Best Candidates

1. Use multiple, structured interviews

➢ Structure interviews around job requirements
➢ Using more than one interviewer reduces risk of “similar to me” bias
2. Observe candidate behavior: Directly or indirectly observed by using behavioral
simulations or assessment center tests
3. Conduct personality tests; help to identify traits related to a particular job
4. Give applicants a realistic preview of the job
➢ Candidates “try on the job” and asses if job is a good fit
➢ Recruiters also observe how candidates respond
www.themegallery.com
24. Impacts of Customer Churn on a firm

 Incurs a loss of revenue from the customers who have defected

 Loses the opportunity to recover the acquisition cost incurred on the defected customers

 Loses the opportunity to up-sell/cross-sell to the defected customers

 Loses social effects

➢ Influencing other customers on product/service adoption

➢ Potential negative word-of-mouth

 Invests additional resources to replace the lost customers with new customers
25. How to deal with an unhappy customer?

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25. How to deal with an unhappy customer?

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25. How to deal with an unhappy customer?

50
Building a world clas service
organization

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www.themegallery.com
26. It’s time to fire a guest

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27. CRM Risk management plan

 Management that has little customer understanding or involvement

 Rewards and incentives that are tied to old, non-customer objectives
 Organizational culture that is not customer-focussed
 Limited or no input from the customers
 Thinking that technology is the solution
 Lack of specifically designed, mutually reinforcing processes;
 Poor-quality customer data and information
 Little coordination between departmental initiatives and projects
 Creation of the CRM team happens last, and the team lacks business staff
 No measures or monitoring of benefits and lack of testing
28. Service Recovery definition

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28. Service recovery definition

Service recovery includes all the actions taken by

a company to resolve a service failure.

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29. Organizing Framework For
Managing
Complaints And Service
Recovery

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Hỏi gì khum?
Review - Part 4 - Contents

1. Customer Database 8. Data-building schemes

2. Benefits of Data Based Customer 9. Failure to integrate data leads
Value Management Approach to…
3. Benefits of Marketing Databases 10. Analytical CRM
4. Uses of Marketing Databases 11. The purposes of Analytical CRM
5. Why customer-related data are 12. Analytics for CRM strategy and
important tactics
6. Big data 13. How analytics are used during
7. 3V’s of Big data the customer lifecycle
14. Service analytics
15. Data mining
Review - Part 4 - Contents

16. What data mining analytics do 23. Tools To Identify The Best Candidates
17. Marketing Metrics 24. Impacts of Customer Churn on a firm
18. Traditional and Customer Based 25. How to deal with an unhappy
Marketing Metrics customer?
19. Why don’t unhappy customers 26. It’s time to fire a guest
complain? 27. Risk management plan
20. Managing Complaints 28. Service recovery definition
21. The Gaps Model 29. Organizing Framework For Managing
22. CRM with Employees Complaints And Service Recovery
Part 5 - Contents

1. The importance of change 7. Social CRM Strategies

management 8. Consumer-to-Consumer Interaction
2. Kotter’s 8-steps to managing change 9. Sentiment Analysis
3. Back office processes that support 10. Global CRM
CRM
11. Database CRM
4. Challenges Facing CRM through
Traditional Channels
5. CRM through a Direct Channel – the
Internet
6. Future of CRM
See you!