2_Customisation

• • • • • • Building a data base is a step by step process Stage 1 = pioneering (marketing file) Stage 2 = specialisation (file analysis) Stage 3 = multifunctional teams (data base mgt) Stage 4 = system integration (real time & inter-phase) Stage 5 = one to one communication

2_Customisation
• Which data? 1. Customer or prospect identification
• Name, address, city, telephone number and e-mail address

2. Customer segment

Subgroup of customers according to socio-demographic data
What is the customer’s preferred channel

3. Communication channel preference

4. Transaction history 5. Communication history

CRM Marketing Aspects
1. 2. 3. 4. Customer knowledge Customisation Communication & channels Relationship policy

3_Communication & channels
• All new channels require substantial investments and effort! • The challenge is a matter of integration « whilst keeping a single point of contact » despite the fragmentation of the mass/media

3_Communication & channels
Multi-channels • We talk about communication and not about distribution channels • We talk about « touch points » • Multi-channel management is not very different from managing all sorts of channels leading to various target groups

3_Communication & channels Multi-channels Impersonal Low interactivity Differentiated Medium interactivity Personal High interactivity Television Radio Billboards Magazine Website E-mail Letter Telephone Personal sales Service .

3. Customer knowledge Customisation Communication & channels Relationship policy . 4. 2.CRM Marketing Aspects 1.

4_Relationship policy Customisation • To what degree do we want to approach customers in an individualised manner? • What is the price of customisation? .

4_Relationship policy Customisation • The best solution will need to be determined jointly. in interaction with the customer • It requires reasoning from the standpoint of the customer instead of that of a product manager .

4_Relationship policy Differentiated pricing & revenue management Segmentation Price / segment Forecast Capacity allocation .

Working per segment 3. Look for contact moments 5. Loyalty programmes . Working per relationship phase 4. Improvement of size and quality of the customer base 2.4_Relationship policy Goals 1.

4_Relationship policy A Existing Customers Market develop retain migrate recover drop follow acquire activate B Segments C D a Potential Customers Segments b c d .

The structure of the course CRM ORGANISATION MARKETING ANALYSIS SYSTEMS 1_Elements of CRM 1_Customer knowledge 1_Relationship Data 1_CRM systems 2_Customer-supplier 2_Customisation 2_Data mining 2_Implementation 3_Strategy 3_Communication 3_Data selection 3_The future 4_Relationship oriented 4_Relationship policy 4_Data reporting 4_Conclusion .

Introduction What Do You Need to Know? Use this formula to determine your data and information needs: • What do you want to know about your customers? • What data will point you in the right direction? • With the data in hand. ask why these numbers are what they are.Analysis . .

Analysis .Introduction An important foundation of analytical CRM is created by the relationship data. • Making sure the proper data are recorded with the desired intrinsic quality makes it possible to implement a selected relationship policy .

• The relationship data are used in statistical and data mining analysis to make marketing selections • The selection analysis is the result of: – The segmentation analysis – The cross-selling analysis – The retention analysis .Analysis – Introduction An important foundation of analytical CRM is created by the relationship data.

• These data should also allow for the measurement of the effectiveness and efficiency of the dialogue with the customer • Are proper channels being used? • Have activities lead to the desired financial results? .Analysis – Introduction An important foundation of analytical CRM is created by the relationship data.

Analysis – Introduction Management reporting • Does it allow to finalise the strategy? • Does it allow to communicate? • Does it allow to evaluate? .

1_Relationship Data • What types of external and internal sources are there to expand the database qualitatively and quantitatively? .

1_Relationship Data • We usually have the essential data. be it only because of prevention of money laundering regulations. but what about the other essential data? • How is the data stream organised when there is a change? • There is the internal as well as the external challenge in the quality of the data .

1_Relationship Data • • The receiver of the information should have it the way he or she prefers Even the smallest of mistakes can arouse negative emotions! A customer will be sensitive to the way we use data and the time span allowed for it to be effective (for instance: contact centres data processing time) • .

1_Relationship Data From a technical point of view the following elements will be key issues: • The rules of the input of data (customer education) • The time span of access to data (in & external) • The avoidance of duplication • The avoidance of errors • The matching of data • The rules for distribution • Speed and reliability .

1_Relationship Data Which data? • Decisions about which data should be the result of an ideal customer profile. it will be the foundation on which the organisation will implement its relationship policy and subsequently CRM .

internet. preferences .1_Relationship Data Customer profile Segment Customer value Transactions Products Communication Satisfaction Customer characteristics Socio-demographic Annual contribution to profit Type and contribution Type and contribution Branch. phone centre General satisfaction with supplier Lifestyle.

Service quality seems universally poor—customers do not believe that any provider can be relied upon to provide a superior service experience. . 2. Service quality seems indistinguishable—customers don‟t perceive any real difference between your offering and that of your competition.1_Relationship Data Price becomes a critical issue when: 1.

1_Relationship Data Price becomes a critical issue when: 3. This is more often true across a brand. such as a particular hotel chain. Service quality seems universally good—customers believe they will receive an acceptable or even superior service experience at any location. than across an entire industry segment. .

remember a few rules of statistics: • 1. . It can only tell you what your customers did or thought yesterday. Information is always old. It will not guarantee a thing about what they will do tomorrow.2_Data mining As you use the data and information you’ve gathered.

remember a few rules of statistics: • 2. Focus groups and surveys can be a lot of fun because you really get to know an individual‟s or small group‟s feelings.2_Data mining As you use the data and information you’ve gathered. However. the only data that can show trends comes from statistically significant samples of the larger group. . One person does not represent the group.

Data is not a goal in itself. it is just a tool. . remember a few rules of statistics: • 3.2_Data mining As you use the data and information you’ve gathered.

2_Data mining The goal of data mining is mainly • Related to the effectiveness of the sales effort – – Example: price sensitiveness as result of promotions Example: effects of personalisation of an offer Example: for a specific product. determine who should be approached • Related to the selections – .

2_Data mining • • • How may statistical techniques (data-mining) be used to enrich the customer profile? How should the analysis process be designed? Which technique is going to be used? .

2_Data mining How should the analysis process be designed? Goal Problem Analysis Database Analysis Report .

3_Data selection Segmentation for the benefit of strategic marketing issues: • How to divide the market into segments • How to profile the segments • How to develop the marketing service concepts per segments .

4_Data reporting • • • How to evaluate the final result of the relationship marketing activities? How to define the economic customer value? How to work towards a balanced scorecard in this context? .

The structure of the course CRM ORGANISATION MARKETING ANALYSIS SYSTEMS 1_Elements of CRM 1_Customer knowledge 1_Relationship Data 1_CRM systems 2_Customer-supplier 2_Customisation 2_Data mining 2_Implementation 3_Strategy 3_Communication 3_Data selection 3_The future 4_Relationship oriented 4_Relationship policy 4_Data reporting 4_Conclusion .

1_CRM Systems « CRM is a strategy – technology is the enabler » • What CRM systems do? • What is a data warehouse? • What is a content management system? .

1_CRM Systems • A variety of CRM sub-systems have been developed for the performance of the primary and secondary functions in front and back office and linking activities between the two .

which coordinates activities that take place through different channels.1_CRM Systems The technical issue is to link front and back office: • In many situations. companies use what is known as middle-ware to achieve this. .

1_CRM Systems Sales Intranet Website Administration Other data Products E-mail Phone Fax CRM Application Warehouse Other units .

• However. experience shows that is takes more time than expected with the risk of obsolescence before it is even put into function .1_CRM Systems The question is to build one’s own application or not. • At first glance it is a way to avoid substantial investment in supplier’s own systems.

D.Edwards Siebel Onyx • • • • • • Pivotal Pegasystems Allegis NCR Unica Unisys .1_CRM Systems Well known suppliers of CRM systems • • • • • • • SAP Oracle Navision Intentia J.

it is a retrieval system: • Destined for the support of management information systems • That contains clear history • In which users can find information for their educated decisions • Which provides data for a campaign management system .1_CRM Systems A data warehouse is an isolated environment.

and software is available for that purpose or CMS (content management system) in short • It is an intelligent form of document management.1_CRM Systems A content management system • With time the need arises to automate the management of the web content. .

More effective data gathering 2. Deployment of precise customer info . Sales and marketing automation 3.1_CRM Systems CRM system should provide 1.

Recognition of customer needs & opportunities 2.1_CRM Systems To enable 1. More targeted marketing 3. Timely offering of specific/targeted products .

Implementation .

” . your task now is to brainstorm a list of all the objectives you may have for CRM.2_Implementation “ Building on the work you have already done to identify potential CRM strategies.

2_Implementation Key issue relating to CRM: how to optimise the customer information flow across multiple channels. .

especially the „soft‟ personal info  how to route this data to the „Customer Information System‟ for rapid & efficient analysis  how to route precise & timely customer information back to the channels.2_Implementation Multiple channels: to solve this. in order to allow cross/up-selling or personalized advertising  how to share identical on-line customer information across the different channels . following issues need to be addressed:  how to capture data by the different channels.

2_Implementation The IT element will decide whether institutions will progress from offering multiple channels to offering a real “integrated” channel strategy. .

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