You are on page 1of 21

CUSTOMER RELATIONSHIP DEVELOPMENT AND MANAGEMENT

Prof. Rushen Chahal

Prof. Rushen Chahal

Page 1

RETAINING CUSTOMERS IS CHEAPER THAN ACQUIRING THEM
‡ Average Firm Looses 50% Of Customer Base Every Five Years ‡ Reducing Defections Increases Profits ‡ Many Customers Who Defect Were Satisfied ‡ Extremely Satisfied Customers Are More Likely To Repurchase ‡ Satisfied Customer Tells Five People While A Dissatisfied One Tells Nine
Page 2

8-2

Prof. Rushen Chahal

CLV FOR APPAREL PURCHASES 8-3

‡ Spent 67% More In Months 31-36 than 1-6 ‡ 3 Referrals After 1st Purchase; 7 Referrals After 10 ‡ Loyal Customers Would Buy Other Product Lines
Prof. Rushen Chahal

Page 3

8-4

RELATIONSHIP vs. TRANSACTIONAL

Prof. Rushen Chahal

Page 4

FOUNDATIONS OF CRM

8-5

Prof. Rushen Chahal

Page 5

8-6

RELATIONSHIP-BUILDING FEATURES
‡ Land¶s End
± Multiple Ways To Contact, ³Virtual Dressing Room,´ Newsletter, Languages, Custom Products, CoBrowsing and More

‡ Yellow Freight
± Continuous Improvement of Products and SelfService Options, My Yellow, My Pickup and More

‡ SmarterKids
± Age and Learning-Style Appropriate Products, Skills Tests, My Kids Store, Rewards for Schools and More
Prof. Rushen Chahal

Page 6

8-7

RELATIONSHIP MARKETING IS A PROCESS, NOT A PROJECT.

Prof. Rushen Chahal

Page 7

8-8

CRM PROCESS

Prof. Rushen Chahal

Page 8

8-9

IMPORTANT CONCEPTS
‡ Targeting ‡ Personalization ‡ Customization

Prof. Rushen Chahal

Page 9

TARGETING AND PERSONALIZATION PROCESS

8-10

Prof. Rushen Chahal

Page 10

8-11

?? A COOKIE ??

Prof. Rushen Chahal

Page 11

8-12

OTHER IMPORTANT CONCEPTS
‡ Anonymous Profile ‡ Identified Profile ‡ Registration ‡ Incentive

Prof. Rushen Chahal

Page 12

8-13

EMPLOYS MANY OF THESE TECHNIQUES

Prof. Rushen Chahal

Page 13

TYPES OF PERSONALIZATION
‡ Rules-Based ‡ User-Controlled ‡ Information-Driven

8-14

Prof. Rushen Chahal

Page 14

PERSONALIZING A WEB PAGE

8-15

Prof. Rushen Chahal

Page 15

8-16

British Supermarket Tesco Is A Leader In Loyalty Programs Administered Through Their Web Site

Prof. Rushen Chahal

Page 16

LOYALTY PROGRAMS MUST
‡ Be Easy To Use ‡ Provide Immediate Rewards ‡ Have Value To Customer ‡ Be Targeted To Behavior Change ‡ Be Affordable ‡ Have A Published Exit Strategy
Prof. Rushen Chahal

8-17

Page 17

THE CRM VISION

8-18

Prof. Rushen Chahal

Page 18

8-19

SEAMLESS CUSTOMER EXPERIENCE
‡ All Channels ‡ All Customer Touchpoints ‡ 24/7/365

Prof. Rushen Chahal

Page 19

CRM SUCCESS FACTORS
‡ Acquire The Right Customer ‡ Craft The Right Value Proposition ‡ Institute The Best Businesses Processes ‡ Motivate Employees ‡ Retain Customers
Prof. Rushen Chahal

8-20

Page 20

8-21 STRATEGIC SUMMARY

‡ CRM Is Key To Enterprise Profitability ‡ Customer Lifetime Value Is Key Metric ‡ Transactional/Mass Media Marketing Cannot Meet Many Needs ‡ CRM (Sales Force Automation, Marketing, Customer
Service)

‡ ‡ ‡ ‡

³A Process, Not A Project´ Targeting, Personalization, Customization Key Tools Loyalty Programs Can Be Helpful Seamless Customer Experience
± Touchpoints (Motivation & Information)/Technology Page 21

‡ Acquire Right Customers Rushen Chahal Retain Them Prof.