Transcript GLOBAL MARKET ENTRY STRATEGIES Chapter Nine

Chapter 13
Instructor Shan A. Garib, Summer 2013
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LO 1
◦ Overall process of building and maintaining
profitable customer relationships
◦ Delivering value and customer satisfaction is key
◦ Use of information technology and databases
◦ Attitude is as important as technology for an
organization
◦ Large CRM systems can be tens of millions of
dollars
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LO 1
◦ Access to customer information from any touch point
◦ Collected and stored for all employee access
◦ Customer Experience Management
 All touch points with brand are considered
 Gain insight into customer needs and behaviour
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LO 2
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Management must “walk the talk”
Employees take ownership in everything they do
Heightened sense of customer service responsibility
A CRM culture does not come in a box of software
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LO 4
◦ Customer Acquisition
◦ Customer Retention
◦ Get customers and keep them: key to profitability
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LO 4
◦ Pareto’s Rule (80/20)
 Reward heavy users with special care
◦ Canadian Tire Money is oldest loyalty program in
Canada
◦ The added value that differentiates
◦ Provide a wealth of information about customers
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LO 5
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Data Mining
◦ Efficient way to sort through information
◦ Identify relationships between variables
◦ Spot trends
◦ Loyalty programs provide a lot of this data
Data Warehouse
◦ Electronic library of indexed information
◦ Mine the data to enhance strategic decisionmaking
Outcome  Better marketing decisions
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LO 5
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Each customer is an investment
Enhance loyalty through service
Improvement in customer value
Increase in “share of wallet”
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LO 6
◦ Databases can be mined to segment customers
based on value
◦ Strategically manage segments based on
profitability
◦ Beware of potential competitor poaching of highvalue customers
 consider whether “firing” low value customers may
present a risk
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LO 6
◦ Customer purchase data can be analyzed based on
when they were made, and frequency of purchases
◦ Strategies enabled to reactivate before too late,
ensuring lapsed customers become loyal customers
◦ Solving problems for lapsed customers can yield
high customer loyalty
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