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Customer Relationship

Management
CRM in Marketing
Gopalan Narasimhan

Evolution of Marketing .

Marketing Source HP .

Evolution of Marketing  Product Centric to Customer Centric  Mass Marketing  Target Marketing  Relationship Marketing  1to1 Marketing  Collaborating and Engagement with Customers  Target Marketing / Market Segmentation — — — — Geographic / Psychographic / Firmographic Infographic / Lifestage / Privacy preferences / Payment preferences / ………… Self-segmentation Hyper-segmentation  1to1 Marketing and Relationship Marketing .

CRM in Marketing Initiatives  Cross selling and Up selling Downselling!?!  Customer Retention — Attrition analysis / Likelihood of Churn  Behavior Detection and Modeling — — — — — Propensity to buy Next sequential purchase Product affinity analysis Price elasticity Modeling and Dynamic Pricing Seasonal buying behavior and special offers  Customer Behaviour Prediction and Marketing Decisions — — — — Special offers for At Risk / Likely churn Customers Target offers/ discounts / marketing campaigns Product bundling / cross selling Design of loyalty programs .

Customer brand equity. Customer Lifetime Value  Value Modeling — — — — — Customer value scoring based on a set of key parameters Different weightage for different parameters Present and Future Value Both financial and non-financial parameters Revenue.Customer Value Metric / Modeling  Customer Profitability vs. Joint events / activities (for marketing and promotion)  Customer Value based Customer Interaction Model  Relationship Pricing . Profits. Margins. Strategic nature of relationship. Referrals.

Movie tickets. Bike . PC. Stocks. Grocery. Laptop. Mutual funds. Books. Life Insurance. Music.Channel Optimization  Channel Optimization refers to Optimizing a company’s ‘inbound’ channel with its ‘outbound’ means of Customer interactions and knowing how to chosse the best approach for each  Right choice of channel based Customer interaction perspective  Activity – Think of your Channel preference for buying the following — Mobile phone. Pizza. Camera. TV.

Gives insight on Customer’s web preferences and behaviour .Personalization  Knowing Customer preferences and Knowing Customer behaviour — With the help of data gathering and analysis  Gather data across channels on various interactions — — — — — — past purchase behaviour clickstream customer master data / demographics survey responses interactions with customer care / support centres complaints information / product return  Cliskstream – footptint (or clickprint?) of Customer’s browsing.

Customer Lifecycle (CLC) Marketing  CLC Marketing focuses on creation of and delivery of lifetime value to the customer  Focuses on the products or services that customers need at different stages of their life .

CLC – Example of a Bank’s Products for a Retail Customer Livecas h/ Savings ac Kid’s account / Piggy Bank Pension Retirem ent plans The Student Loan Customer Life Cycle Bike Loan / Car Loan Life Insuran ce Savings and Investm ent Plans Mortgag e .

for they spend all their extra money on themselves.  DINKS and SINKS – Have more disposable income and hence a favorite target for marketers. — — — — — — — — — — — Young and single Engaged couples DINKS SINKS Married with children: Babies. Elementary School Age.Wealthy or Medicare dependent . their house. Teens. Tweens (8-12). Toddlers. Older Single parents Empty nester Boomerang Kids (adult children who have moved back in with their parents) Extended parents (grandparents raising their grandchildren) Blended Families (stepchildren) Retired . their pets and vacations.Family Life Cycle Marketing  Family Life Cycle – Based on family type of the target market of the consumer.

Wedding days.Health insurance after a hospitalization  Other common events – Birthdays. . etc.Event Driven Marketing / Event Based Marketing  Event Driven Marketing is marketing activity specifically driven by a Specific Event of a Customer  Sensitive marketing / Sales communication reacting to Customer specific event  Example .

CRM Systems Functionality for Marketing .

Monetary) Analysis — RFM analysis is a marketing technique to determine quantitatively which customers are the best ones by examining how recently a customer has purchased (recency). email. — CRM Marketing rocess Salesforce — — Manage contact mailing lists based on the existing data related to leads. contacts. social media. etc.Frequency.Marketing – CRM System Functionality  Plan and Execute Marketing Campaigns — — — — — Planning campaigns /marketing activities by defining the campaign objectives Define the campaign success metrics Measure the campaign effectiveness (ROI) by linking to the leads and opportunities Track customer inquiries related directly to the marketing campaigns Track sales closures related directly to the marketing campaigns  Execute marketing campaign thru different channels like internet. how often they purchase (frequency). and potentials Create email templates (mass mail / personalized) Schedule the campaigns for select target contacts / groups  Campaign Optimization : RFM (Recency. and how much the customer spends (monetary). opportunity. RFM analysis is based on the marketing axiom that "80% of your . smart phone.

Key Accounts. Reports storage and distribution electronically . for tracking performance of the marketing activities.Marketing – CRM System Functionality  Contact management — Contact data. communication. Contact Mailing List.  Measure marketing performance — — — — Management Dashboards Trending Reports / Analytical Reports / Business Intelligence Measurements like Campaign ROI. Accounts by Segment. etc.

com .Source www.zoho.

CRM in Banking .

CRM in Banking .

Thank You! .