eCRM: 1 to 1 Marketing

One-to-One Marketing
One-toOne-to-One Marketing
An individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer.

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What Is One-to-One Marketing?
One-toOne-to-One Marketing is... With a Goal of«

Individualized Information-Intensive Long-Term Oriented Personalized
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Strong Relationships Customer loyalty Profitability Cost Reduction

One-to-One Marketing
Focuses on Share of Customer

One-to-One Marketing

Develops Customers Finds Products for Customers Focuses on Share of Market

Mass Marketing
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Develops Products Finds Customers for Products

Presentation topics Why are companies moving to CRM ? What¶s in it for you? 1 to 1principles and best practices Other challenges .

sustaining.eBusiness Key Concepts  eBusiness  The strategy of how to automate old business models with the aid of technology to maximize customer value The process of buying and selling over digital media The process of building. and improving eBusiness relationships with existing and potential customers through digital media  eCommerce   eCRM (eCustomer Relationship Management)  .

eBusiness Processes WHY Customer Relationship WHAT Redesign Business Processes (Outside-In) HOW Applying Technology .

1997 CEO Global Business Study Figure 1:Top Executive Priorities Ranked By Percent Citing Issue As ³Critically Important´ . 2. 9. Keamey. 3. 5.CRM has become the #1 priority for CEOs Customer Relationships Have Become the top priority for CEOs Worldwide 1. Keamey. 7.T. 6.1994 Executive issues Survey.T. 4. 8. Relationship with Customers Cost Competitiveness Effective Use of Information Technology Managing Change Shareholder Value Revenue Growth Industry Restructuring Globalization Value-Added Supplier Relationships Source:A. A.

Why the shift in focus to CRM? Most companies have already attained operating efficiencies and optimum productivity through past efforts of :  Downsizing  Strategically outsourcing non-value added actives  Business Process Reengineering Products in many industries have become commoditized forcing companies to sacrifice margins for sales volume .

Presentation topics Why are companies moving to CRM ? What¶s in it for you? 1 to 1 principles and best practices Other challenges Where do you go from here? .

* Today .the average business is losing between 15-35% of its customers annually** 69% of these defections are due to a poor sales or service interaction with the customer** *Harvard Business Review **Forum Corporation .And oh. check these numbers« Cutting customer defections by just 5% has the effect of boosting profit between 25% and 85%.

The 80/20 Principle 80 / 20 Principle A principle holding that 20 percent of all customers generate 80 percent of the demand. 4 .

Other reasons why you need 1 to 1 Increase customer loyalty Get more business per customer Become less dependent on price Increase customer satisfaction Save time Speed up your sales cycle .

Get customers 2. Keep customers 3. Grow customers The only difference is how firms do this .Our Objectives    1.

Share of market vs. share of customer Customer Needs Satisfied Share of Market Mass Marketing Customers Reached .

Share of market vs. share of customer Customer Needs Satisfied 1 Mass The longer the bar. The higher unit Margins will be Share of Customer to Marketing 1 Share of Market Customers Reached .

In four words «  Treat different customers differently .

the grater their stake in making relationship work.A lasting competitive advantage The only true competitive advantage comes from the understanding you have of your customer that your competitors don t. The more effort customer invests. Going to a competitor = Reinventing the relationship . This information has to come from the customer.

Presentation topics Why are companies moving to CRM ? What¶s in it for you? 1to1 principles and best practices Other challenges .

Summary of 1to1 strategies Identify Customer: -Identities -Contact info -Transactions -Interactions -Give the right people access when they need it One view of the customer: Integrated customer data Differentiate Value: -Actual (current profits) -Strategic (potential value) Needs: -Individual -Segment All customers are not created equal Interact Learn more: -Needs -Value -Preferences -Behaviors Customize Customer Need Set: -Product -Service -Delivery -Bundles Never make a customer tell us the same thing twice Use your knowledge about customers to customize .

LTV . fax.Potential value .Business objectives .Identify±What information do you need? Goal: obtain more and better information about a greater number of your customers« and use it to build relationships Name.Complaints .1998 .Lifecycle stage Source:Insight Technology Group. rank. phone.transactions Customer needs . email History.Habits and preferences Revenues.Choice of communication channel . profitability. serial number.

Where is the customer data? Where is it? Who has access? Who manages it ? Who owns it? Sales Customer Service Marketing Collections Department Operations Other Providers Internet Call Center .

across all divisions Give the right people access to this info at the right times Figure out who ³the customer´ is when the ³customer´ is an enterprise .How do you manage it ? Make sure individuals are recognized at all contact points Link customer interactions over time.

³One Customer´ view is key Integrate customer information across the value chain Customer A Customer A Customer A Customer A Customer A Marketing Call Center The Web Sales Force .

not market Customers have different needs from the enterprise .Differentiate Customers have different values to the enterprise   Actual value Strategic value=share of customer.

Tiering by actual value First: Determine Actual Customer LTV First Tier Second Tier Third Tier Fourth Tier Fifth Tier .

Tiering by strategic value Use dialogue to determine Customer¶s potential First Tier Second Tier Third Tier Fourth Tier Fifth Tier .

Naming the tiers Keep These Customers Grow These Customers Actual Strategic Servicing Costs Fire Them? .

not what you want to sell Some needs are apparent through transactional records .Basis of customer differentiation Differentiate them by their NEEDS What the customer needs.

patterns Errors. design. delivery Usage ± purpose. complaints Next purchase .How to think about NEEDS Initial learning about product Marking initial contact Decision in what to buy±style. information Decision in how to configure Preferences ± color. billing. nature. financing Pick-up. frequency. shapes. size. added services Pricing.

Identify all contact points ³We identified all guest contact points. not just messages . No one realized how many opportunities we were missing.Engage your customers in an ongoing dialogue that enables you to learn more and more about their particular needs. priorities. GuestNet CEO . and interests « .´ Patrick Kennedy. and the employees most likely to be involved.Generate feedback.Interact ± Interaction strategy Goal:Generate more customer feedback less expensively « and use it as a competitive advantage . It was eye-opening.From expensive sales people to call center « to the even less expensive Web site .

Benefits of Interaction Uncovers     Needs (so you can sell more) (Dis)Satisfaction Risk of defection Complaints Makes you smarter about the customer each time Helps build barriers to exit .

Touch point integration Integration of all customer contact points is becoming increasingly important as customer information migrates to the Web « Beyond the Phone .

Interaction Using Call Centers Measuring the efficiency of call centers:  Hold times and call abandonment rates Ratio of complaints handled on first call Percentage of inquiries generating leads Share-of-customer data gathered Review the metrics list ± which metrics are efficient vs. effective? Which ones support Learning Relationships? Measuring their effectiveness:    What are the implications when you off load support the web? How does the call center change .

High efficiency . fees. delivery. terms. product« .Customize Reward customers for collaborating with you by tailoring whatever you possibly can for them: service. billing.Low cost .Based on individual customer preferences .

How mass customization works Production and service delivery processes are modularized Component elements or services are mass produced Configuration is digitally controlled Finer granularity of modules leads to larger number of possible ³fits´ .

Demonstration that you know the customer (pre-filled out forms) Remembering transactions.Mass customization musts 1. 4. 6. 5. 7. history Remembering specific preferences Using knowledge to deliver individual satisfaction Making it EASY to be a customer Anticipating needs Delivering . 3. 2.

Presentation topics Why are companies moving to CRM? What¶s n it for you? 1to1 Principles and best practices Other challenges .

Infrastructure Change hurts « 1. Hold people accountable for the right things 5. Start small 2. culture changes take time 3. Expand gradually. Measure and reward the right things! . Don¶t forget about training 4.

never asking the same thing Change behavior based on feedback Differentiate  Interact  Customize  .Sales forces automation Spend the right time and effort on different activities.Sales Identify and track the right information  .

Call center Move from cost center to profit center Sell more to customers Support for complicate products Ancillary services (Increase loyalty) Pre-qualify leads Low-cost market research Improve Complaint discovery and tracking Practices .

Does this fast! .Remembers all this! .Customizes based on individual preferences .1to1 web site Requirements: .Differentiate visitors on each visit .Identify and remember visitors .Tracks and interprets click streams .

4. The company thinks they understand strategy and process well. process. No strategy. 3. and rules coding. business rules or processes in place. CRM tools make good things better and bad things worse faster). but really don¶t. .Top 5 Reasons CRM Efforts Fail from the Home office in silicon valley 5. 1. 2. The inability to really effectively implement strategy ± even if you have the right strategy. tactics. There isn¶t a wealth of experience in this area. No one has got it down to a science. The company has processes buy they are bad processes ( like any automation.